after a weak of sitting on the sidelines, I´m finally back. Monday & Tuesday I did not put on any trades. Wednesday was the 4th of July holiday and this morning I did not see a lot that interested me either.
Later in the morning however, a chat room pump helped me out of this misery.
CCCR (China Comercial Credit Inc., Credit Services) announced the entering into a non-binding letter of agreement with Lexiang Technology according to which CCCR will acquire 100% of the outstanding shares of Lemon Green Inc. “non-binding” & “letter of intent”? You see, these were no news of considerable substance. CCCR started a meteoric ascend however, hit the circuit breaker halt and reached a high of $1.68 from around $1.15 earlier in the morning. Directly after hitting its highs, the unwind followed and CCCR flushed below VWAP. I located shares and promised myself to be patient. Since CCCR seemed very weak, I put in my short order at $1.43. I indeed get filled and CCCR bounced up to VWAP – I was too early again. VWAP rejected however and the bagholders took over. CCCR experienced one red candle after another one. I took half my shares off at $1.33 and the other half at $1.28 just before a washout to $1.24
It is good to be back with a win. As so often however, my entry still was too early. Furthermore, given a stop above $1.50, a basically had a R/R of 1. I keep referring back to this issue and I am still thinking about how to improve this flaw.
Today´s trading was quite good and I´d give myself a C given my goals of improving consistency and R/R.