The idea for this trade started with some of my research last night on $ISNS which ended up showing it as a potential candidate for buy based on the information I had, the aftermarket movement and the early pre-market uptrend. The pattern and news was showing clear signs of continuing uptrend momentum. However, I failed to consider that the hype created by the Ferguson events for the law enforcement equipment was dying down. I was expecting a breakout but it didn’t do much of anything.
This Stock resulted ended up being very choppy, which is quite inconvenient for the favorable plays in penny stocks.
My Mistake: I didn’t heed the warning advising me against buying a company stock this late after a news event; I did anyways at a loss. As usual I cut my losses quickly; This time I set my bar at around $50 loss, roughly 2.7% of my initial investment.
Entry price: B4.45 400s @ 8h28 Pre market
Exit price: S4.29 400s @ 9h17
Total loss: $64.00
Stop Loss: My 2.7% mental stop loss was set at $4.32 for a $48.04 loss (+commissions), I did get past that due to the speed at which the stock was moving.
Lesson Learned: When the stock starts moving down, way to close to the mental stop loss, set a sell order with the price.
This will probably be my last trade during the next 7-10 days as I will be doing some home improvements over that period of time.
Here’s the screen cast of part of the trade and after the trade: