Some days you have an online stock setup that will work, yet you make nothing on the trade. Quality Systems Inc., QSII was that equity for me today. After putting in a lower high on the daily chart, QSII broke down today.
The stock looked like a great short in all time frames. The daily chart caught the longs off guard opening below yesterday’s low after closing near the high as in the Bear Short 1 pattern. The 60-minute chart portrayed a BS2 signal and I was filled short using a BS2 pattern on the 15-minute candlesticks. Risk, R = .34. I decided with all charts lined up a target of 2R would be set.
The stock traded down to 1R where I moved my stop to break even. Even with the Nasdaq Composite falling as much as 30 points, QSII just couldn’t do it. I’d call the trade both successful and frustrating. I followed my plan and didn’t turn a profit into a loss. Keeping losses is the key. Not every trade will give you 4R gains like this day trade.
The MZZ position was closed today for 1R. The trade in this ETF was up 2R at one point, so I switched to the 5-minute chart to manage it. It stalled at trendline resistance near 73, and just couldn’t hold. I used a pivot stop on the 5-minute chart. The pivot wouldn’t form though, when the Nasdaq bounced. I enede up just taking the point Today was one in which trade management played a key role.