If you get stopped out of a trade but the larger idea remains valid, don’t be afraid to take another crack at it *if* it sets up again.
After falling like a stone for weeks on unrelenting news of Chinese government crackdowns, on August 24th $BABA gapped up right into a strong resistance area and finished weakly..
Before the market opened on August 25th, I mentioned that I was watching $BABA for a short if price followed through below the prior week’s HB.
I did end up taking a trade that morning, but my location wasn’t ideal, and I got stopped out when bulls rallied in the afternoon. After I stopped out, I moved on to other stocks, but I should have kept an eye on $BABA. The very next morning, $BABA gave another great setup when price opened below the weekly HB, rallied up into the 8-SMA bands, and failed again. Since that entry, $BABA has dropped about $8!
My trade was good. My timing was just off. I was right to give up on my initial trade, but I shouldn’t have been so quick to give up on my idea.