My Trading Mistakes And Lessons From Them by Frantz Herr - TVTY trade #2

The trade began well:

1) Being aware of the context of where a stock is currently trading can create opportunities, and
sometimes these may be counter-trend trades.
2) Overbought and oversold conditions can generate trades with good character – favorable
returns quickly – even if short term. I was able to recognize the OS condition and enter
efficiently.
My mistake was in trade management. The initial move after the late March reversal had strong
momentum. Eleven straight up days before the first reaction. I sold on day six. This is why I will always
use mechanical trailing stops in the future.

Momentum moves like the early April rally in this stock almost always continue AFTER the FIRST
reaction, albeit with less momentum. Selling even during the initial reaction in mid-April, if I had let the
stock get that far, would have been selling too early. Wait for momentum to dissipate before selling, in
conjunction with awareness of potential targets (where institutional buying or selling was previously
present).

I am not afraid of making mistakes. Everybody does it. I will take the lessons learned and improve my
future trading results.