It opened at 81.5c, from the previous day close of 74.5c. So it gapped up about 10%, volume 1.5million at the open, probably about normal since it broke out about a week or so ago. I wouldnt have bought this, i would first have waited to see the trend (2). But then the price starts falling. And by 10:19am its fallen to 75.5c.
But then look what happens, it rebounds, spectacularly. By the time its 10:20am, yes ONE MINUTE later, the price is 82c and in this time (1min) theres been 1.5million volume and about 100trades. Clearly the trend is now up, on the tick chart this would be obvious. This would be my entry. Price is 10% up and the trend and volume is behind in (continuation of the breakout).
Stop at 80c. 4 ticks, keeps you in the trade longer. Notice how also my stop would have been placed just below the resistance point of 81.5c as per the charts. From there if it would break through it would run, if it would fall my stop would be ready. Risk 2% of $20,000 capital is $400.
400/0.02 = 20,000 shares. So i buy 20k at 0.82 = 16,400.
It touched to 81c a few seconds after. Apart from that it goes up. Stalls at 88-89 for a bit, which means about 10 seconds, and then goes up. Very quickly hits 95c then falls to 91. For sure i would have exited here. It actually goes up a bit to 92 or 93. But say 91c exit. Mind you this is 10:25am and 5mins after i bought in.
This all happens in FIVE MINUTES. So i think whats key to this intraday trading is TIME, u must be quick and this has to do with PSYCHOLOGY. You CANNOT have 2nd thoughts or go over something again. Its meets your entry criteria you MUST BUY IT. INSTANTLY. If u get stopped out u SELL IT, and DO NOT look at it again. Dont buy it again on the same day. If it meets your entry criteria on another day then take it as another trade perhaps. Coz if i had taken too long, waited and pondered 5 mins more i would have bought in at 95c and its GAME OVER. I dont know if i got the psychology to deal with this in the real world, i guess we'll have to see. Discipline probably improves with time and experience.