NASDAQ:ELOX short was a 1st red day setup.
The stock had low liquidity so we decided to take small risk = 0.50% of the account.
The entry was 8.70 and the stop 9.50. The target was 5.50.
The trade got stopped out for a small loss.
GCTK is an over-extended stock.
GCTK 33.62 M dollar volume with an 18.45 M mkt cap.
The magnitude of the setup average, therefore, deserves average risk. Also, the price of the stock being less than 3 deserves less size given that you need a lot of shares to fullfill a big position.
In this case the risk will be 0.50% of the account.
