Identify The Trade
$AWX had a pretty premarket chart with a very obvious $5.00 resistance point that wasn't breaking and so I became interested in taking another trade on this stock since yesterday's trade worked out, even if not completely.
Choose The Strategy
The strategy was to get an entry near $5.00 and use that level as my risk. From that point I would want to see the stock move back down the $4.00 level to capture my ideal risk:reward.
Execute The Trade
This turned out to be a tricky trade. I got my entry at $4.74 during the open and the stock started to fade to my target at $4.00 but then it turned around hard and slammed into the $5.00 area where I took a loss. After the stock got tired and couldn't make it through $5.00, I got a re-entry at $4.83 and then the stock just crashed hard into the $4.20's. I was able to get a 1/2 exit at my target price, then I decided to hold the rest of my position to see if we could get a further fade for the rest of the day. No fade, AWX turned around and blasted through my risk level. So the remaining 1/2 of my position was stopped out.