This trade comes straight off of yesterday's daily long and short setup, which highlighted this trade. I recommended getting short between $6.01 and $6.10. In my case, I got in at $6.06. So far so good with this trade.
Though it does come with its own risks - it is a low dollar, small-cap stock, and the key with this one is to not hold it beyond your stop-loss. Sounds obvious, I know, but sometimes, if one is keeping mental stops, its easy to let that stop-loss drift some, and before you know it, you are down twice as much as you'd otherwise be.
So be sure to use a hard stop on this trade - no mentals.
Also, if it breaks down like it should, don't go for the homerun. Take 4-5% and get out. You'll be better for it.
Here's the TTI trade setup.
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Ryan (@shareplanner) specializes in swing trading strategies and is the founder of SharePlanner which he created to help and teach others on how to trade stocks better using multiple approaches and time frames. Each day you can count on Ryan to provide his trading advice as well as transparency in every trade that he makes. Ryan Mallory resides in Central Florida. More >>