CROX PM
It always pisses me off when I make the most fundamental of mistakes in trading.
Whenever one gets into a trade there are three fundamental things that need to be decided prior to getting into the trade.
1. What time frame of a trade are you looking at?
2. What is the technical picture of the stock in particular and the sector that you are entering? Are you getting in the right time?
3. What is the stop? How much pain are you willing to take?
CROX was a trade where in all three questions did not have an answer in my mind before i entered.
1. The time frame should have been atleast a few days... most likely a week.
2. The timing was off. I should have waited for more consoidation.
3. The STOP should have been more generous.
Hindsight is always correct, but it does not make any money. CROX corrected and is on its way up to atleast it short term high of 49.70. Earnings are due the 30th and that adds to frenzy.
posted by Rajaram Pai at 11:40 AM
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