Red Day. There were some very basic rules that I broke which lead to me having this pull back and some very key concepts that I need to act on moving forward to prevent avoidable situations.
The first thing is that when you’re on the front side of a short you HAVE to take some front side covers. There’s absolutely nothing worse than being in a move, being right, not taking an opportunity and having it ride back on you into the red. That happened to me today and while the hits weren’t devastating (who am I kidding. I’m devastated by any red day ) it’s the little things that add up and add or subtract from your confidence for leveling up.
The second thing is that I need to do a better job of setting risk levels for my position and sticking to them despite my size. While my starter dabble size is pretty small and can sustain a big move I think mentally it doesn’t help me stay laser focused to keep that kind of size on to just see where it might go unless I have a VERY VERY VERY strong conviction about a move.
Next there’s 0 reason to give things a chance if you don’t have a good average. This isn’t the market for that…..I don’t know if there’s ever a good market for that. When things are working you just need to get out of there. If you entered the trade with a good setup and had a good entry you wouldn’t be nervous about the trade possibly reversing, so this tells me that when I’m feeling like this I’m sized in too much for the trade at hand and I need to either size down or just get out. You can ALWAYS join back in. I’m not sure why I forget this, but I’m going to write a note to myself and post it on my monitor so that I don’t forget. I CAN ALWAYS GET BACK IN!
The last thing is that I need to make sure that the plays that I’m prepared for are getting the bulk of my attention opposed to turning to the hot thing that’s moving, which I’m not as ready for and more prone to make emotion irrational decisions. I hate to think about how many CLUTCH setups that I’ve let fall by the wayside because I let my attention get pulled elsewhere. This stops today. If my main scan ideas are setting up in the morning that is where my focus will be. Anything else will be treated as a second class citizen and get the attention as so noted.
I had a trade on $AYRO today, but I was so disappointed with it I think I subconsciously decided to not take a screen shot so I didn’t have to look at it again, but I’ll talk about it below.
DPW
This was one of my worst AND best trade that I had today (weird how that can work out). I had a good read and good feel for this one, but I missed a key cover and decided to add into the pops when it wasn’t confirming in my favor, which ultimately led to me getting the deer in the headlight syndrome and it walked away from me a decent bit. Definitely not something that I’m proud of here, however I’m happy that I didn’t try to fight it and if you looked at the full intraday chart you can see that some shorts clearly got their backs blown out on this one. I’m glad that i wasn’t a part of that number.
Again here the key is that once I’m in the position I need to be mindful of those key levels that hold and you can see that I actually did cover, but where I errored is that I didn’t take note of the 2.93 base (well I didn’t, but I didn’t act) and from there it was a minute or two before it ran and you can see what happened. I was hoping for a bit more of a pull back to minimize but in reality i should’ve been sizing down into that 2.93 level and this wouldn’t have been an issue. Completely avoidable and I will be working on this moving forward.
ENG
This is a rare bird. You’re seeing that right..a long setup. I will be working on these gapper ideas more. The timing is just tough with my schedule, but man are these sweet.. I sold a bit too early in the 2.30’s, and ended up selling the rest in the 3’s for a nice win.
In hindsight I should’ve waited for the VWAP pull back to take my position, but I’m happy with it and will look to clean up the entries moving forward.
SOLO
Right idea here, but the management and execution was missing. This was one that I was prepared for and let it fall behind the other hot plays of hte day. My original goal was a push into 11 for a fade, and it did just that, but look how far behind I was for that play. Then instead of adding on the pops I added into the fails and then missed the cover into the key level.
No excuses for this. Yes it was a winner, but I minimized a massive opportunity. This just isn’t acceptable and f i want to make it this is stuff I have to fix. Screw being average!
AYRO
sooo yeah no chart, but this one was weak sauce. Good idea/plan, but I just let it ride and that was dumb. I shorted the pop after the offering thinking we might stay heavy, which was fine, but once it held I needed to get out of there and I didn’t. Lesson learned.