Wednesday, March 16, 2022

beware the last trade of the day

I have a bad habit of giving the last trade of the day too much room. I trade in a cash account, and when I'm out of cash, I'm done. I don't want to be done. I typically lose more than win on that last trade when I give it too much room. Just take the same smart stop as I know to do. 

MU good daily setup, less relative weakness than others moving big today. Somehow I avoided stopping out on that spike down, but when it instantly recovered I added. Market shaped up too then, and this turned into my moneymaker trade of the day.

NVDA...I think I lose more than win in this ticker. I should go smaller or avoid. I would say my stop was too tight, but if I had given low of day I would have stayed in. That's not the answer, though. In retrospect, the real entry at 9:52 seems obvious (join my new firm "Retrospect Trading" 100% win rate!). With a stop against the low... size position accordingly.

$STUDY: I need to trade against pivots. Where was my pivot? I can't just pick a random 1-min doji candle to stop against (that's too cute) I need a real pivot to stop against. 

BABA... Gapped "too much" and dropped straight out at the open. Tried for a short on vwap failure as market weakened, but took an L and gave too much room. At least, as a step in the right direction, I stopped half where I "should"... though to counter that I gave the back half too much room. That's probably a wash. 

Nice green day, though.




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