Report Card #24

Dear L.,

Last Friday was a pretty good trading day. I waited for my opportunity and executed it when I saw it.

I only traded on ticker, PRAN (Prana Biotechnology Limited, Biotechnology Sector). After an unjustified move on this low float stock on Tuesday, I eyed to short PRAN. When I noticed pre-market that a well-known chat pumping trader was about to buy PRAN, my conviction was even stronger. My plan was to wait for the open and short after a possible stuff move into $2.6/2.7.

The stuff move came and PRAN dropped from a high of $2.91 to as low as $2.55. Having learned from my past mistakes, I did not want to chase this unwind. I planned to scale into my position. I shorted 1/2 position at $2.65 and the other 1/2 at $2.7 into the VWAP move. PRAN did end up bouncing more and I honestly was lucky that my stop above $2.8 was not hit when PRAN hit a high of $2.79. However, this lower high was all that PRAN could do and it was weak for the next hour. I covered 1/2 of my position into the wash at $2.54, covered 1/4 at $2.55 a little later and finally covered the last 1/4 at $2.46.

Unbenannt.png

I am quite satisfied with this trade. Even though I eventually want to enter more aggressively on the stuff moves, I am happy about how I followed my plan in both scaling in and out of this trade.

Given my goal of improving consistency and R/R this day receives a B-.

Best,

Nils

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