So today after watching the new Tandem Trader DVD, which if you don’t have it, pick it up here http://bit.ly/1tJSEfg , there was a long that I should have recognized as a potential short given the example in the DVD ala VSR. Now I’m not going to give away any of the concepts in the DVD as you should be buying it if you want to really take trading serious but I will go over the trade and what I totally missed. Yes it is always easier to see things in hindsight but what really hit me was the sell of the long I had that should have given away the short. This even all came to be much MORE obvious after watching the VSR trade again on the DVD.
So RADA was in play today as I did place it on my scan idea for a 3.50 para move with the short idea into that. I didn’t touch it at all this morning because I knew that I would be going away mid part of the day, but the long idea came into play around 11:20 time frame on the chart. As you can see the idea was for grinding pattern and hold after it broke the 3.40 area so I took 1000 around the 3.38 area and even added more on what looked to be the confirmation after it re-broke the 3.40’s
at around 3.30 for 2000 total (not yet on this chart below)
Now thing was, the real area on the breakout and trend hold was actually the 3.50 area, as indicated by the top red line. THAT was the real area RADA needed to break over and hold for the long and continuation into new HOD’s. So at this point I was anticipating a nice break and move for the new highs and tidy little profit. But the real AH-HA moment came when I took a step back, looked at the 5min 2 day chart and noticed something even 
more telling.
We were actually on the underside of the move and this was a stuff into everyone thinking 3.50 break 3.50 break. I still gave the trade a few more minutes to see if it could break and hold the 3.50 area but nothing doing. After it quickly snapped under the 3.40 area, this is where I added more at 3.30 I gave it a few more minutes (only 4) It just didnt have the “feel” of a long any more, decided to cut my loss and sold it all at at 12:05 for a loss.
Now the key thing here was, I saved myself from losses but the real thing was, this was a perfect short entry given the chart history on the daily. So instead of taking a short on it, I just watched it fade, fade, fade away under $3
Now if you want to take a look into the fast thought process of this trade I do suggest you go back to the top of this post and get the DVD, watch the 2nd part and the commentary trade on the VSR trade, super insightful. Also feel free to leave a question or comment and I will be happy to answer.