Ticker (Company) - Rice Energy Inc. (RICE)
Plan - Buy the support sell the rip. Could not help but notice the support build hovering around the 20 and 50 day moving average. Bought back in on strong support (although as we see MM broke it down before it ripped higher), Plus I had the wind behind my trade with oil rebounding. My plan was to hold longer threw the breakout and really let this work, but when I see strength and profits I take it.
Entry price - $9.75
Exit Price - $10.14
Profit (Loss) - $78.00
Learning Point - Nailed entry on the first day as it ripped to 10ish a share quickly, but as the market sold off and the selling machines were turned on Friday afternoon, the stock pulled back to the 9.50 area. I did not panic as my risk was low and my position size was small so I was not scared out the trade. As I build confidence in my new strategy I will scale as needed. Knowing where the support levels were really brought me confidence in staying with the trade as I knew at some point it would rip higher. But if that last support would have broke I would be forced to take the small loss and move on. As you can see on the chart I sold way to early, need to learn a little more patience and let the trade work the way I planed it.