Today was another losing day but I was able to figure some things out with my trading system and when certain setups are best entered and when I should wait for a better setup.
KOOL: I did some stupid shorts in this in the morning that were basically off of what I thought was bigger volume but I should have waited. What I learned was stocks that are under vwap right away are definitely shorts on pops to vwap vs. stocks that stay over vwap and start going up. Then at that point you either long or you wait for actual, clearly, bigger than usual volume. A good short was on the double top fakeout with big volume later on at 4.60. That is where the edge is and where I should have shorted. I did think about shorting it then but I didn't want to re-risk 20cents again on the trade but that is bad line of thinking - each trade should be made independently. It is because I was tried of trying it before that I missed this easy opportunity. I tried it again later on due to a pattern I saw and I gave it too little room and got stopped out at the top when it did exactly what I thought it would. I tried being cute with the stop but that didn't work, of course. Sometimes it does, sometimes it doesn't but overall just don't do it.
ALKS: I tried shorting this on the vwap retest but it didn't work. I looked into why some of these work and why some don't and essentially the ones that do work are because they are peaking the prior day's support and then fade off while the ones that don't work have no resistance to get rejected from. So that was a good lesson there. I tried it again later on a good pattern and it did flush but it just flushed under vwap on volume and then reclaimed. Broke even on that. I thought about covering on that flush but as mentioned before - sometimes those blips work and sometimes they don't.
TWLO: Basically I saw it flush and make a new low by a few pennies and then reclaim support. I went long there and I thought it could have went but right when it looked like it was going higher it stuffed right back down hard so I got out for a small loss after that. Nothing else to say, it was worth a shot.
Things to work on:
1. Stop picking the top on these names like KOOL. Look for what I mentioned about the vwap above.
2. Make each trade independent of one another.
3. The shorts under vwap trade like ALKS only work in certain conditions.
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