I got caught in a squeeze today on ALDX and got ran over as a result.
You will see on the chart below that I was shorting the r/g push with risk on HOD. My first short was good and I got 1/4 taken off on that pull. It then popped hard to HOD so I took it off just as planned for a loss. My r/r on this trade though was not ideal. With this 5 cent tick pilot, the risk was larger than I realized so my loss on that risk was $1500, way more than it should have been. When it rejected r/g–twice–and pulled I went in short again with the same risk. This time, however, it was a fake and it ran hard and fast. I tried to get out. I tried 3 times but there was nothing I could do. I was sized in 2/3rds and it kept skipping right past my orders. I was not quick enough. I told myself to just stay patient at this point and wait for the pull to get out. I was already screwed so I would try to keep a level head and get out at the best spot possible. Trying to salvage this horrible luck I ended up adding some with HOD as risk thinking this was just a random SSR squeeze and I would get out at my average on the next pull. That was my dumb mistake on this trade. It popped past HOD (by only two ticks of course, .10) and I took everything off. More bad luck. I then went in short again but it was holding so well. That last short I had HOD as risk and a profit order at 10.60, both hard orders were in. It was holding well and it looked like it would shoot past HOD again. I got nervous and took the trade off. You will see I even top ticked that big red candle, not the type of top tick you want. Seconds later it pulled like crazy. Had I stayed put just a few more seconds I would have hit my profit target and made back almost the entire loss. Once again bad luck. This entire trade is the definition of bad luck, let me tell you. Everything that could go wrong, went wrong.
I spoke to a friend and I really need to add a panic hot key. Something I can use to get out quick in rare situations like this. That could have saved me thousands. I have never used hot keys.
I am not giving up though. I will continue to work on my two goals the rest of the year. There is nothing I can do about this loss.
