{"id":2228,"date":"2019-05-20T06:00:30","date_gmt":"2019-05-20T13:00:30","guid":{"rendered":"https:\/\/www.steadytrade.com\/?p=2228"},"modified":"2019-05-20T12:53:19","modified_gmt":"2019-05-20T19:53:19","slug":"stephen-shorts-a-short-the-ups-and-downs-of-roan","status":"publish","type":"post","link":"https:\/\/www.steadytrade.com\/stephen-shorts-a-short-the-ups-and-downs-of-roan\/","title":{"rendered":"Stephen Shorts a Short: The Ups and Downs of ROAN"},"content":{"rendered":"<div id=\"backtracks-player\" style=\"max-width: 100%;\" data-bt-embed=\"https:\/\/player.backtracks.fm\/st\/steadytrade-com\/m\/ep-98-stephen-shorts-a-short-the-ups-and-downs-of-roan\" data-bt-theme=\"dark\" data-bt-show-description=\"false\" data-bt-show-comments=\"false\" data-bt-show-art-cover=\"true\"><\/div>\n<p><script>(function(p,l,a,y,e,r,s){if(p[y]) return;if(p[e]) return p[e]();s=l.createElement(a);l.head.appendChild((s.async=p[y]=true,s.src=r,s))}(window,document,\"script\",\"__btL\",\"__btR\",\"https:\/\/player.backtracks.fm\/embedder.js\"))<\/script><\/p>\n<p><span style=\"font-weight: 400;\">When traders get bored, dangerous things can happen.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This week, while waiting for the appointed time to record the SteadyTrade Podcast, host Stephen Johnson decided to jump into an impulsive trade to kill some time. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s get one thing straight: <\/span><b>The SteadyTrade team doesn\u2019t suggest that you EVER trade because you\u2019re bored. <\/b><\/p>\n<p><span style=\"font-weight: 400;\">Impulse trades can be much more of a gamble than those that you enter after careful research and consideration. That said &#8230; since Stephen already took a position &#8230; why not ride it out and see how it goes?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This week, Tim and Stephen abandon their regularly scheduled podcast to broadcast Stephen\u2019s short-selling adventure in real time. Will it end in joy or tears? <\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Stephen Commits a Trading Sin<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">On April 29, 2019, at approximately noon, Stephen committed the ultimate trading cardinal sin&#8230; <\/span><\/p>\n<p><b>He traded because he was bored.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">He saw an opportunity to short sell the stock ROAN, and he took a position. While waiting to see if the stock\u2019s price will fall, he and Tim evaluate the trade.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">What Tim Sees in This Trade<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">After chastising Stephen\u2019s lack of impulse control, Tim evaluates the trade in terms of what he sees. These observations can help you evaluate potential short sales of your own: <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Terrible long-term chart. <\/b><span style=\"font-weight: 400;\">This chart is a disaster, with a huge gap down in August and a steady downtrend since. Tim explains why this makes it a good contender for a short.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>High float. <\/b><span style=\"font-weight: 400;\">This stock has a float of approximately 150 million. What does that mean? Tim explains, including possible implications for the trade.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Recent green day.<\/b><span style=\"font-weight: 400;\"> A few days ago, the stock had a green day based on buyout rumors &#8230; but those rumors might be false. In that case, it can be a great short sale!<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>It\u2019s never broken below VWAP. <\/b><span style=\"font-weight: 400;\">The stock pulled back that morning, touched the VWAP, and then ripped back up to the high of the day. Is this worrisome or a sign that what goes up must come down?<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Trading high.<\/b><span style=\"font-weight: 400;\"> ROAN is currently trading at 10 times its daily average. Without a strong catalyst, could this potentially be a sign that it\u2019ll turn around soon?<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Concerns About This Trade <\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Tim agrees with Stephen\u2019s short-selling thesis on this stock after a brief breakdown. But he still has some reservations: <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Timing. <\/b><span style=\"font-weight: 400;\">Stephen\u2019s attempting a midday short, which often doesn\u2019t end well for traders. <\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Stephen\u2019s mindset. <\/b><span style=\"font-weight: 400;\">Tim\u2019s said it before, and he\u2019ll say it again: Entering trades because you\u2019re bored is usually a terrible idea. He explains why this messes with a trader\u2019s psychology, increasing the likelihood of making dumb mistakes! <\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Stephen\u2019s Take <\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In the episode, Stephen explains his reasoning for entering the trade, including: <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>A bad time for biotechs. <\/b><span style=\"font-weight: 400;\">As Stephen saw it, the market wasn\u2019t too busy at the time, and plenty of biotechs have been failing lately. Could ROAN be the next to fail?<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Fake news? <\/b><span style=\"font-weight: 400;\">ROAN was up on bio-news that he felt would likely fizzle out, and it had a bad long-term chart. <\/span><\/li>\n<li style=\"font-weight: 400;\"><b>An opportunity. <\/b><span style=\"font-weight: 400;\">As Stephen saw it, the time was right. Listen in to hear what he\u2019s risking and how he settled on these risk levels! <\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">The Emotional Journey of Live Trading<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Throughout the episode, you\u2019ll get a real feel for the emotional rollercoaster that comes with trading. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">As the stock approaches its high of the day, a panicked Stephen is (in his words) on the verge of pooping his pants. Then as the price starts to drop, he\u2019s jubilant, ready to buy everyone a round to celebrate. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">But will the trade go in Stephen\u2019s favor? How low will the price go? <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Will the whole thing flop as the stock rebounds on news? <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Be sure to listen to the entire episode to hear how the trade worked out! <\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Got Something to Say?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Hey, do you have a question about this episode or a trading-related topic? Hit us up! <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Send questions via the <\/span><a href=\"https:\/\/www.steadytrade.com\/\"><span style=\"font-weight: 400;\">SteadyTrade<\/span><\/a><span style=\"font-weight: 400;\"> website, <\/span><a href=\"https:\/\/www.youtube.com\/channel\/UC5pPaJfbfRHQ1msJ4bSj_dQ\"><span style=\"font-weight: 400;\">YouTube<\/span><\/a><span style=\"font-weight: 400;\">, or by <\/span><a href=\"mailto:admin@steadytrade.com\"><span style=\"font-weight: 400;\">email<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">P.S. Did you know that if we choose your question to answer on air, you can win a SteadyTrade mystery gift box? Ask away!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Thanks for tuning in to the SteadyTrade podcast. Stay tuned for weekly episodes featuring the hottest topics for aspiring traders!<\/span><\/p>\n<p><b>How much do you love this episode? Leave us an <\/b><a href=\"https:\/\/itunes.apple.com\/us\/podcast\/steady-trade-the-profitable-side-of-trading\/id1275946076?mt=2\"><b>iTunes review<\/b><\/a><b>! <\/b><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When traders get bored, dangerous things can happen. This week, while waiting for the appointed time to record the SteadyTrade Podcast, host Stephen Johnson decided to jump into an impulsive trade to kill some time. Let\u2019s get one thing straight: The SteadyTrade team doesn\u2019t suggest that you EVER trade because you\u2019re bored. Impulse trades can [&hellip;]<\/p>\n","protected":false},"author":2283,"featured_media":2238,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":""},"categories":[3],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Stephen Shorts a Short: The Ups and Downs of ROAN - SteadyTrade.com<\/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.steadytrade.com\/stephen-shorts-a-short-the-ups-and-downs-of-roan\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Stephen Shorts a Short: The Ups and Downs of ROAN - SteadyTrade.com\" \/>\n<meta property=\"og:description\" content=\"When traders get bored, dangerous things can happen. This week, while waiting for the appointed time to record the SteadyTrade Podcast, host Stephen Johnson decided to jump into an impulsive trade to kill some time. Let\u2019s get one thing straight: The SteadyTrade team doesn\u2019t suggest that you EVER trade because you\u2019re bored. 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