One lesson that has really resonated with me lately is the power of starting small. One of the bad habits I am working on breaking is starting too large of size prior to actual confirmation. Stocks with tremendous range do not actually require large size to produce large gains and I find I keep myself in trades when the size is smaller. Funny how that works?! Staying disciplined with this new strategy is proving itself within my winners and I am looking forward to seeing what this does to my win/loss ratio and subsequent size of winners relative to my losers.
JACK is a trade I took yesterday that gave me a large win with substantially smaller size than what I have typically been trading. (disregard the pricing by the ticker, I snagged this going back in today’s chart). JACK had gapped up quite a bit on earnings on the markets first big crack to the downside, a move that is long overdue (IMO). I started very small and then immediately doubled on the first pull below vwap. I added a third time as it pulled below a base under vwap and was rewarded with nearly $4 a share.