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Right stock, wrong time

Hey Market Pilots,

You can be right on a stock, but wrong on the timing. And sometimes things just happen that you have no control over no matter how good the setup is… Let me explain what I mean. 

One particular trade that comes to mind recently is QTT and my favorite Moxie Trampoline setup. I took a trade the other week on QTT because my rules were fulfilled and the chart looked worthy of an attempt. This was even during one of my live trading sessions so I was thorough in my analysis and explanation of the setup.

The very next day, the market changed a little and QTT dropped like a rock. It went down nearly 10%, but since we had stops in place we only got tagged for about 5%. For whatever reason, it just wasn’t the right time for this stock to lift and there is no arguing with that. But I knew that it had potential since I had a reason for going into it in the first place. I kept an eye on it, day after day, looking for something to signal to me that it was ready to go again.

Price did eventually bounce up to where our initial entry was, but I held off for a little longer because now I could see the market itself wasn’t in a good position which would most likely affect QTT. I was right about this and QTT dropped a little and otherwise chopped.

This chop wasn’t too bad though. Price mostly stayed in a narrow range and the major moving averages on the time frames I use stayed in place without price busting them to the downside. The real signal was when price jumped up, held, and did so with big volume.

The takeaway here is that if you see something that is looking right, you are probably onto something, but we can’t always nail the entry. 

This could be for a multitude of reasons, but we still need to protect ourselves just in case we are actually wrong which means we might get stopped out one or two times before the real move comes along…

But don’t let a stopped out position discourage you. It is just the name of the game as we never know what the future holds.

Over and Out,

Your Profit Pilot

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