April 21, 2008

Net: -$72
LFT: -$100
Trades: 4
Shares: 500
Frame of Mind: Neutral, great weekend

mrk-042108-15min.png

mrk-042108-5min.png

mrk-042108-1min.png

MRK gapped up at the open, it started going down right after. I was gonna go long at the gap fill, and since it was still  trading at 40.10 I shorted it, 3 penny cut. Went down to 39.80 where I reversed to long, however it continued down to 39.50, i added another 100sh, then on to 39.20. It pulled back to 39.90 only, I was gonna get out at 39.98. Continued down from there to a low of another $1 down from my exit target.  It then consolidated between 39.75 and 39.30.

What I did wrong:

My exit target might be too far, I didn’t expect this strong downtrend to materialize since it gapped up, how could it move lower than the previous day’s???? Also, the 1min candle formed a doji.

What I did right:

I cut my losses exactly where I wanted. at the re-test of the the doji

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