Journal 002: Wrong set-up -- URC

Breakout trade
Stock: URC
Entry: 159.6
Exit: 154
Result: Loss

Further to my study about stock trading, I read about Darvas Box and tried to use this set-up but I think I used it wrong.

So my bias is that It will break out at the second box that I plotted (see above). But It went against me.

With what I learned from reading the book "Think & Trade Like a Champion" by Mark Minervini, the good thing is applied what I've learned from the book. At least the rule of setting up stop loss before entering the trade.

So, with the above Darvas plotting and the 20, 50 and 200 MA I entered the trade @ 159.6 and set a 4.66 % stop loss at 154.

Well, as I said, I think the setup was wrong. As I look at it now, It seemed that URC has finished the one month upward run and in on its way to reverse the trend the day I entered. Glad about the stop loss and the discipline I learned from the book. I pull the plug without hesitation and learned from my first losing trade.

My takeaways on this trade.

• The book also told about stock selection process and criteria but was not able to use it religiously. The book mentioned about 8 criteria to consider before buying a stock. Next trade, I'll focus on those 8 criteria. 
• I'll study more about the right execution of Darvas. 
• I studied also about the Fibonacci retracement and it seemed I can still consider URC on a bounce as it hit now the 50%. I just don't know. Anyway, madami pang kakaining bigas. Aral pa ulit. 
• Next trade hint: I tried intraday and caught a stock that was surging up and ride the momentum.