GG made the downward move that I expected it would. Now that I've gained a full point, I will lower my stop to my short entry point, thus making this a "risk free trade." I will either make money or break even. I usually would take partial profits on a trade like this with a quick gain, and let the rest ride. However, the stock is in the midst of one of my favorite short setups, so I've decided not to take partial profits and instead go with the "risk free" stop strategy.
As we can see from the chart below, the stock broke down through support off of a head and shoulders pattern. When I see a promising breakdown, I usually wait, rather than entering on the break. I have been burned one too many times by false breakouts. Instead, I look for a low volume pullback to what now should be the resistance line. If volume is low, I enter in anticipation of another leg down. High volume nullifies the setup.
This was my strategy for short entry today. As the stock neared the resistance line on very weak volume, I entered with a stop just above resistance. My initial risk was only 75 cents. My target is right around $23, the next area of congestion. If we reach that point, I will either take partial profits or exit the trade completely, depending on how the stock is acting.