Today I just traded one name in the morning. It was a good trade and it was pretty quick. I didn't want to overtrade that much with the current environment being uncertain. However, there were other opportunities throughout the day that would have worked nicely. I was legitimately unsure on some of them but the others I think it comes down to not wanting to give up the profit I had in the morning. It was the fear of losing/giving back realized gains. I didn't fully accept the risk of the other trades so I didn't take them. For me to get to the next level, this feeling will have to go away. How will I work on this? I think it will just take time for my beliefs to adjust to the point where I honestly have the confidence to say that an idea I have will more likely than not be profitable and thus not taking any particular trade will result in reduced profits in the long run.
LIVE: I shorted after the stuff and covered on the wash and that was it. Quick and easy trade. I was originally going to take this off watch since most of the gap was gone but I kept it on and when I saw the blatant stuff I had to just short. I figured it wouldn't go down that much more although I have been wrong before so I got put my bid in at r/g and that was it for the rest of the day.
Other stocks:
GPRO: I was looking for more fade today and wanted to see some decent clues before going in. At the open it was right under vwap but I didn't take that since that wasn't enough evidence, which was fine. I saw it come off a bit and then thought vwap pops would be ok. It went to vwap and through it and then came off, retested and that was it. First lesson here is to give things enough room - it retested the first failed retest and went above it by a penny. When it got under the resistance again, that was a clear sign to get in which I didn't take. That was a mistake. At the time I thought maybe it can bounce and I wasn't sure it could keep fading but those were just excuses to not get in. Other lesson to learn from the chart is it made a fake low and bounced and then went lower - I knew this already but again sometimes fake lows/highs are it and sometimes they aren't.
IONS: This was hard to read in the morning as there was definitely a buyer there but also a seller at the 34.20s level. I initially was going to leave it alone unless it did something pretty clear. I saw it had rebounded and then formed a tight consolidation on the 1min. I thought it looked good for a long but I knew there was a seller there in the low 34s so I waited. While it would have worked for a scalp on the long side for a few cents, I saw it couldn't get past that level and it stuffed from there. That should have been an indicator to short I guess but I wasn't really sure what was going on. I don't think it fear based here to not take the trade but rather just being confused and not knowing if it would keep fading or just recollect and possibly go higher. Later on I thought about shorting it when it looked like it had a fake breakout but that ended up just being a higher low - good to consult higher timeframes. The stuff at vwap was pretty good and I guess I should have taken that but honestly I wasn't sure at that point still what could happen. If they worked out sellers and it could go higher or not. The real lesson here is that on these phase news gap ups they usually just consolidate and don't do much for most of the day.
LC: I was interested in fading this since the earnings weren't that great and most of these earnings names had been getting faded. In the morning I saw it have some failed followthrough and it was under vwap but I said it would be better if it peaked .75s since that was the main level. That turned out to be a good move because it just went off support and went higher. It had a fake high later on and just did nothing for most of the day. It looked good for a fade when it kept having lower highs above $6 but I rather wait for the backside and retest of $6 at that point. Lesson: Good to wait for confirmation. It held the support and even though it was peaking and under vwap, that didn't matter. Again, disregard vwap in these circumstances.
UVXY: I wanted to long it because I thought we would have an all day fade on SPY but it never setup and it never looked strong although it did hold up for a while while SPY was going up before making new lows. Again UVXY holding up while SPY goes higher is not a reason to go long.
TWLO: The main reason I didn't short it was because I was looking for a potential long after it washed out and setup so when it went back to vwap I didn't short it because I thought it could setup for a long but it never did and just kept fading. Not sure there is any lesson here. I did think about shorting at vwap but was unsure if it could rebound more since the earnings were decent.
CEMP: This was another miss. I thought it was sketchy that it wasn't going higher and was starting to give up its gap in premkt. Once it came under the 8.30 level that was a sign to me that it could fade more but I wasn't sure since I thought it go back up since the news essentially negated what made it go down in the first place. I guess I should just trade the price action in this case as it looked very good otherwise for a fade since it was consolidating under that important $8.3 level.
Things to work on:
1. Fear of losing/giving back gains.
2. Give things enough room and use the appropriate size so you can add at the right times.
3. Disregard vwap in certain scenarios.
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