SHOP: Short Idea
Updated
Shopify has lost 55% since ATH, it´s in a bear trend, broke an important support @880, and still falling with high selling pressure. What do I expect in the next days/weeks? Further drops. My plan? Here´s what I´m gonna do:
1) I expect a momentaneous recovery in the week. Why? The stock market never goes directly to 0, the price always fluctuates, moves in waves (ups and downs), but the overall trend prevails. Also, sellers will take profits in the way down, causing a small recovery. That being said, I will start adding 15% of my total capital for this trade (Risk Management).
2) Once the stock resumes the trend I will add 25% at the breakout of the first trade.
3) 3% down since 2), I will add 40% as the trend, once again, is confirmed.
4) Last but not least, I will add the last 20% after a 4% drop since 2) happened.
Average price $810, take profit @625, total profit 23,47%.
All ideas are welcome! Thanks for your time!
1) I expect a momentaneous recovery in the week. Why? The stock market never goes directly to 0, the price always fluctuates, moves in waves (ups and downs), but the overall trend prevails. Also, sellers will take profits in the way down, causing a small recovery. That being said, I will start adding 15% of my total capital for this trade (Risk Management).
2) Once the stock resumes the trend I will add 25% at the breakout of the first trade.
3) 3% down since 2), I will add 40% as the trend, once again, is confirmed.
4) Last but not least, I will add the last 20% after a 4% drop since 2) happened.
Average price $810, take profit @625, total profit 23,47%.
All ideas are welcome! Thanks for your time!
Note
Hello everyone! Couple of weeks and already taking profits. Still have a small short position in case it keeps dipping. Hope you liked it!
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