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OEH gapped down on some news. I didn't pay attention to the news till I later heard it on CNBC after I had already taken the trade. As a trader I don't care about the news I care about how people respond to the news.
The first 90 mins of the trading day are the most profitable for me. Here's why! The retail traders are taking their trades by responding to news at the open or the first 90 mins of the trading day.
OEH gapped down and broke below it's previous pivot and trapped all the longterm investors. Everyone that has owned this stock for at least the six years was upside down. PAIN!
I watch order flow to see where the orders are going off at the open and if there's big sellers present which I did see on the tape. So I stuck with OEH stalking for an entry. I wanted proof of the weakness so I waited for the break at 6.75 and placed a stop fairly tight at 6.91. She's gonna work or she's not! No pride in trading. Target well that's a thing in trader you just have to take what the market gives sometimes. I again bring up order flow to know when to get out. I saw the asks being removed quickly at 6.30 so I hit market order out.... Made a nice .45 fairly fast risking only .16 making 2.81 risks units. All in all a great trade and made my paycheck for the day.
Cheers
Troy Peterson
Atmwallstreet.blogspot.com
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