I was scalping in and out of LL in the morning emotion. The mistake I made on it was only covering HALF into each dip, and then the other half would come back to breakeven/red, if I was covering ALL into each dip, I probably could have made twice as much and had a lot better averages and less overall risk involved. The first one was a "just missed my order", I had an order at 29.72 for the other half and it hit 29.76 and then ramped back up, the other ones, I was just too greedy and orders were much lower and wouldn't take the ask when it was holding the VWAP area and perking back up, still lots of volume and emotional candles in the first hour, anything can happen. I was scaling in and out so the total number of shares is 1750 on the trade but the most I ever had at once was 800.
I didn't trade for a while after the first hour but then I started forcing too much on ACAD, something that I'm not generally as good at trading (20-50 dollar priced stocks, especially "thicker" 80 mil float ones like this) and almost gave back my whole day (or more), twice. I shorted it too early, and should have taken off my first entry for scratch when it was not pulling back and then broke over HOD again, was down $600 at the top, but luckily came out with a small profit. Then I did a 200 share scalp for 50 cents (perfect cover thankfully), then re-shorted 200 shares at 44.49 (risk was HOD 44.55), was trying to put in a hard stop at 44.55 but as I was messing around with that, it popped to 44.80, then I was "trying to make the trade work", instead of just taking a 10-30 cent loss on 200 shares (no big deal). I then added twice in bad spots, almost covered some into a dip, then it "market order" ripped to 46+, was down $800 at the top, and covered all into the first washout I got. Then I jumped right back with a bad entry thinking I didn't want to regret my cover, luckily I had a good 200 share add into the pop then covered for only 5 cents profit because my average wasn't very good, had I WAITED for a pop for a GOOD ENTRY on a pop, I would have been more patient with it and it faded about a dollar.
I will start putting VWAP on my charts on this blog, I recently starting using it, and I have made references to it in this blog, so it makes sense to have a visual to look at on the chart.
FOR NEW READERS ONLY: If I am scaling in and out of a position, that is considered one trade until I am completely out of the position and then it becomes a new trade, that's why some trades have a lot of shares, even if I never had that much at once, if I cover half and then re-add my cover, it's still considered one trade until I am completely out. The entry is the average of the entries and the exit is the average of all the exits. The entries/exits are rounded to 2 decimal places, but the exact number is calculated for the PnL, so that's why the dollar amount may look different than what you see. (it may be 7.165 instead of 7.17, etc). Also, you can click on the charts if you want to make them bigger to be able to better see the entries/exits.
LL
| Type | Entry | Exit | Shares | +/- $Amt | $ PnL | % Pnl |
| Short | 30.77 | 30.46 | 1750 | 0.31 | $539.00 | 1.00% |
- Lessons:
- Always make sure to COVER ALL into dips/washouts, especially when there's SSR on and it's still the first hour with lots of volume and emotional candles
- Watch how it acts around the VWAP, when it gets supported around that area and reclaims above it, it will likely keep going higher
- Had I covered ALL each time, I would have made 2x as much and had a lot less risk in case it kept going higher
- Pay attention to key levels, 30.60-30.80 was an area of support and also just above VWAP, it held multiple times, but when it finally broke convincingly, it faded to low 29's
ACAD
| Type | Entry | Exit | Shares | +/- $Amt | $ PnL | % Pnl |
| Short | 42.53 | 42.42 | 600 | 0.12 | $71.00 | 0.28% |
| Short | 44.39 | 43.91 | 200 | 0.48 | $96.00 | 1.08% |
| Short | 44.88 | 45.46 | 600 | -0.58 | -$350.00 | -1.30% |
| Short | 45.71 | 45.66 | 500 | 0.05 | $27.00 | 0.12% |
- Lessons:
- Use LESS size when trading setups/stocks that you are LESS confident in
- Keep to that small size and let the trade "wiggle" a little bit, do not add more size, this compounds the problem and increases your risk and level of emotions in the trade
- Respect your stop even if it goes past it in one candle, take an extra 5-20 cent loss
- I planned to stop out at 44.50 but it popped too quickly and then I ADDED more shares to the problem and gave back half my profits on the day
- Strong stocks generally get stronger, especially if the market is tanking and this is up 15%+, be very careful shorting
- Don't be too quick to jump back in after you get out of losing trade, take a step back and focus on a good re-entry, don't just jump in emotionally with a bad entry
No comments:
Post a Comment