{"id":7445,"date":"2010-10-04T15:41:49","date_gmt":"2010-10-04T19:41:49","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=7445"},"modified":"2010-10-04T15:41:49","modified_gmt":"2010-10-04T19:41:49","slug":"critical-feedback-acn","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/critical-feedback-acn","title":{"rendered":"Critical Feedback: ACN"},"content":{"rendered":"<div>\n<div>I would like to spend some time reviewing how ACN traded on Friday October 1st. \u00a0The big picture in this stock was they had reported their earnings and raised guidance going forward. \u00a0The initial reaction to the news was that it popped in the after hours on Thursday. \u00a0The next morning it was trading above the previous day\u2019s after hour range (see chart below). \u00a0On our morning game-plan sheet our initial bias was to trade it from the long side if it were above 44 (see chart below).<\/div>\n<div>.<\/div>\n<div>20 SMB traders made at least one trade in ACN Friday. \u00a0Five traders lost money. \u00a0I asked each of the traders who lost money trading ACN to send me their executions and explain to me their thought process as it related to each trade they made. \u00a0I felt that this process would allow me to engage in critical feedback, which is one of the elements necessary to develop elite performers (ideally the feedback would have occurred in person \u00a0immediately following the traders performance).<\/div>\n<p>The first thing that stood out to me in the five traders that lost money was that each had four months of live trading experience or less. \u00a0In other words the least experienced traders on the desk had the worst results. \u00a0This begs the question as to whether a lack of experience may have played a role in their under performance.<\/p>\n<p>Let\u2019s take a look at some of their trades. \u00a0My comments in blue.<\/p>\n<ol>\n<li>Hi Steve,Here is the trade in ACN, 44.5 was a pre-market high and when it retested it the first time after the open it rejected the price. \u00a0The trade was to pay the offers if 50 cents lifts as a momentum trade. I payed and was filled at 53 cents. \u00a0As the stock dropped through 49 cents I hit the bids an was out at 46 cents. <span style=\"color: #0000ff;\">There is some good info here. \u00a0The trader is making a technical trade based on a pre-market level and is treating it as a momentum trade, which means they will exit if it trades against them or when the momentum slows. \u00a0The execution of the trade was spot on based on their analysis. \u00a0The only bone I have to pick is that \u201c44.50\u201d was not the pre-market high. It was 44.45 and most of the volume was actually between 44 and 44.40. \u00a0A BETTER momentum trade would have been paying above 44.45 or even 44.40. Would there results have been better with similar execution but instead using the ACTUAL level from the premarket?<\/span><\/li>\n<li>Morning Steve, I was in ACN this morning. \u00a0This was my primary stock pick. \u00a0I was long 44.54 when the stock lifted the offer. \u00a0I hit out of it when the offer dropped to 49 cents. \u00a0When the stock approached all time highs of 44.67, my out was if the offer came back to 44.66. \u00a0When the stock got close to 45, I saw 200k shares being offered. \u00a0When they lifted the stock I bid 45.05 and it printed 45.10 almost instantly. \u00a0I decided not to chase it and got in on the pullback to the level, considering the volume that was done at that price. \u00a0When the offer dropped 45, I hit out of the stock. \u00a0After spending some time below 45, I saw that the stock began to head above the level and the bids showed up for 50k shares. \u00a0I got in with my one of the stops below 45 and the second one at 44.87 which was 1 c below the low of the retracement from the highs of the day. <span style=\"color: #0000ff;\">First thing I notice is that this trader chose ACN as their primary stock, which means they will trade it actively attempting to limit their risk and eventually capturing a bigger move. I cannot tell based on their email why they assigned significance to the 44.54 level. \u00a0Bidding above 45 made sense as a large seller was taken at that level and most breakouts tend to retrace close to their breakout price. \u00a0I do have a problem with the fact that this trader did not get long above 44.25 when the large seller lifted. \u00a0As his primary trading stock he should have been all over that trade.<\/span><\/li>\n<li>Good Morning Steve.I was watching ACN this morning from the open as the 44 Level was Significant &amp; a 43.50 Entry would&#8217;ve been Ideal. \u00a0I ended up missing the Up-Move away from 44. \u00a0So I was looking to Re-establish an entry. \u00a0I saw that it consolidated for a few minutes near the 45 Level before breaking above. \u00a0Once it broke above &amp; with the Strength it did it with, I was waiting for a Pull-Back to possibly catch another up-move away from the 45. \u00a0I put in 2 bids&#8230; One at 45.10 &amp; the other @ 45 even. \u00a0My average price for both lots was 45.05. \u00a0Unfortunately I was unaware there were some Economic #&#8217;s that had come out. \u00a0The Market moved Negatively rather quickly &amp; so did ACN. \u00a0I swept out a soon as I could, which landed me 10 Cents out of the money. =( \u00a0<span style=\"color: #0000ff;\"> The first thing this trader says is that 44 was a significant level. \u00a0I would agree. \u00a0Then why were you not bidding in front of this level on the Open to get long? The low on the Open was 44. \u00a0ACN was only at 44 for about 10 seconds but if this was your primary stock and you had identified THIS LEVEL as important beforehand then you should be bidding for stock there. \u00a0The trader then moves forward in time to ACN trading at 45. \u00a0What happened to all the price action in between?<\/span><\/li>\n<li>Steve,I shorted ACN in front of the held offer at 44.25 with my stop above at 44.26. I&#8217;ve attached the chart.<span style=\"color: #0000ff;\"> This trade was ok other than it was not a \u201cheld offer\u201d. \u00a0SMB would define the selling at 44.25 as an \u201cunusual\u201d held offer and thus would warrant a counter trend position. \u00a0This is strictly a tape reading play. \u00a0The tape momentarily trumped technicals and intraday fundamentals until this seller eventually lifted leading to a quick 25 cent up move. \u00a0If you are going to make this trade the proper way to execute is to have a bid limit order ready to enter the moment the 44.25 lifts. \u00a0Your bid should be to cover and get long and be entered at 44.30 to make sure you will get stock.<\/span><\/li>\n<li>09:34:11 \u00a0ACN 100 44.23 SSD ARCA 0\/100<\/li>\n<li>09:35:50 \u00a0ACN 100 44.32 BOT ARCA 0\/100 -9.00<\/li>\n<li>Unusual held offer. Got short. \u00a0Guy lifted I wasn\u2019t fast enough to flip my positon.<\/li>\n<li>09:38:17 \u00a0ACN 100 44.50 BOT ARCA 0\/100<\/li>\n<li>09:39:54 \u00a0ACN 100 44.48 SLD INCA 0\/100 -2.00<\/li>\n<li>Bought on held bid. \u00a0Bid dropped so I hit out. My stop should have been below .25 since that is where it exploded from. \u00a0Wrong stop.<\/li>\n<li>09:42:02 \u00a0ACN 100 44.45 SSD ARCA 0\/100<\/li>\n<li>09:43:08 \u00a0ACN 100 44.60 BOT DIR+ 100\/0 -15.00<\/li>\n<li>Looked weak after guy dropped and 50 couldn\u2019t hold the bid. \u00a0It was more consolidation which I didn\u2019t recognize so it sprayed up and I got stopped out. Bad trade stock was strong.<\/li>\n<li>09:56:50 \u00a0ACN 200 45.05 BOT ARCA 200\/0<\/li>\n<li>10:01:20 \u00a0ACN 100 44.93 SLD ARCA 100\/0 -12.00<\/li>\n<li>10:01:21 \u00a0ACN 100 44.91 SLD ARCA 0\/100 -14.00<\/li>\n<li>Bought when the offer at 45 decremented got filled at .03 like the move held both lots to let the stock find higher ground since it was above all time highs. \u00a0Number came out market got weak and I got stopped out of both my lots.<\/li>\n<li>10:15:36 \u00a0ACN 100 44.83 SSD ARCA 0\/100<\/li>\n<li>10:16:28 \u00a0ACN 100 44.94 BOT ARCA 0\/100 -11.00<\/li>\n<li>Saw that it was having trouble getting above 45. \u00a0Got short when bids started getting hit it bounced off of .80 into the 90s where I should of added another lot. And used 45.12 as my overall stop. \u00a0With my target being 44.25 with one lot and 44 with my other lot. \u00a0My mistake with the improper stop.<\/li>\n<\/ol>\n<p><span style=\"color: #0000ff;\">This young trader provides me a play-by-play breakdown of each trade he made. \u00a0He stuck with the stock despite the fact that he lost on his first few trades. \u00a0This makes sense to me as the stock was very In Play and it just takes one winner to wipe out 3 or 4 losing trades.<br \/>\nIn terms of his thought process I don\u2019t really like the shorts after the seller lifts at 44.25. \u00a0The stock has gapped up on news and taken out all resistance levels. \u00a0You need to find a way to get long. \u00a0He recognizes this to a certain extent in his trade review where he chastised himself for shorting it. But then he tries shorting again when it fails to hold above 45. \u00a0I think his analysis to a certain extent relies on the price action later in the morning that brought the stock all the way down to the 44.25 breakout price. \u00a0The big picture in this stock was that it was at all time highs and very easily could have consolidated above 44.80 before starting another up leg.<\/span><\/p>\n<p><span style=\"color: #0000ff;\"><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/10\/acn-after-hours.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-medium wp-image-7464\" title=\"acn after hours\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/10\/acn-after-hours-300x207.png\" alt=\"\" width=\"300\" height=\"207\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/10\/acn-after-hours-300x207.png 300w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/10\/acn-after-hours.png 550w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/span><\/p>\n<p><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/10\/acn-open.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-medium wp-image-7465\" title=\"acn open\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/10\/acn-open-300x207.png\" alt=\"\" width=\"300\" height=\"207\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/10\/acn-open-300x207.png 300w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/10\/acn-open.png 550w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p><span style=\"color: #0000ff;\"><br \/>\n<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>I would like to spend some time reviewing how ACN traded on Friday October 1st. \u00a0The big picture in this stock was they had reported their earnings and raised guidance going forward. \u00a0The initial reaction to the news was that it popped in the after hours on Thursday. \u00a0The next morning it was trading above the previous day\u2019s after hour &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/critical-feedback-acn\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":143,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,456],"tags":[1379],"class_list":["post-7445","post","type-post","status-publish","format-standard","hentry","category-steven_spencer_steves_blogs","category-trader_development","tag-n","no-post-thumbnail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Critical Feedback: ACN | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/critical-feedback-acn\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Critical Feedback: ACN | SMB Training\" \/>\n<meta property=\"og:description\" content=\"I would like to spend some time reviewing how ACN traded on Friday October 1st. \u00a0The big picture in this stock was they had reported their earnings and raised guidance going forward. \u00a0The initial reaction to the news was that it popped in the after hours on Thursday. \u00a0The next morning it was trading above the previous day\u2019s after hour ... 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