Identify The Trade
$BSPM had run yesterday, so when I saw it running this morning I was interested in getting in using yesterdays support as a new resistance level. I had such a great trade yesterday, I figured BSPM could offer a similar type of trade today.
Choose The Strategy
I planned to use the $2.50 level as my risk and get an easy all day fade entry around $2.30. Unfortuntaely due to price action, my plans and strategy got bumped up to a risk of $2.75 and entry around $2.50's.
Execute The Trade
My execution of this trade was horrible. I was caught on the front-side of a move that ended up being more powerful than I expected. My first entry was at $2.30 which promptly saw a blow-through my risk level where I should have stopped out. Instead I doubled down only to see my new risk level at $2.75 blown through as well. In the span of 5 minutes, this trade went from planned out, to praying that it wouldn't run all day due to previous day bag-holders selling today. Looking at the chart you can see that my plan did work, however my risk levels were all exceeded by a significant amount. The pain created by that is not worth it, I should have closed the trade when the levels were violated.