ZS Trade on Sep 12, 2019 09:36 from beno: Tradervue User Stock Trades.

Big Picture
- Trump delaying China tariffs
- ECB (European Central Bank) cut rate to -0.5%
- ECB launched QE and will buy $20 billion euros worth of assets each month
- Holding above 282-294 range at 301

Markets Intraday
- PM: trading tightly above 301 making a pennant
- Morning: Traded up to ATH then got rejected on trade war news, still trending back to ATH’s
- Afternoon: Made a new high of 302.46
- End of day: Sold off into the close
- Strongest markets were finance and real estate

Technical Analysis – Long Term
- Uptrend since IPO
- Revenue growing 50% per year
- Their growth might be cut in half according to their FY20 guidance

Technical Analysis – Intraday
- Gapped down $13 on news of slower growth and competition from Palo Alto
- Day1: Was sold until it caught some bids at $46 then traded up to $50 (green on day after gap)
- Traded up to 51.4 on open but quickly failed and OD was down

Original Plan
Wanted to get long from a good level because buyers stepped in at $46 yesterday and pushed it passed its opening price. If the tape is showing some support I will get long.

Execution Notes
I tried the trade once at yesterdays OD high level of 49.7; I got filled at 49.74 and set my stop at 49.34 for 4 units of risk. I was stopped out 6 minutes later at 49.36. One of my daily goals was to try a trade again so I tried to get long again at 48.75 which was another technical level from yesterday afternoon; I got filled at 48.8 in fear of missing the 48.75 price (would have been filled at 48.75) and ZS proceeded to trade all the way to my first level (yesterday’s OD high) where I lightened up and sold half my position, I got filled at 49.71. I held my second half and during the next hour ZS made a bearish wedge against the 48.75 level where I got in. I wanted to hold a core so I didn’t sell my other half. My stop for my second half was at 48.62 (2R) but instead of simply selling my remaining half I decided that I would change my position to short if price reached this level so I doubled my stop size (meaning I would be short after selling my half). I got stopped out and got short at 48.62 and I was hoping for a nice steep down leg but that didn’t happen and the price made another swing high above the 48.75 level where my stop was; I got stopped out of my short at 48.85.

Review
I liked how I tried the trade again at a lower level; I was able to turn a losing trade into a winning trade (in the moment). I didn’t like how I stood by watching this bearish wedge form as I had a good feeling this was going to break to the downside. As my bias was long, I shouldn’t have changed my position to short and I should have sold my other half into strength when I noticed the bearish wedge form. To fix this in the future I will add a rule for myself to get out if I notice a bearish pattern emerge and re-evaluate the stock once I notice bullish patterns again.

Grade Questions

Did I follow my plan? (yes/no/with mods): with mods
Which modifications?: changed position to short after noticing bearish wedge
What justified the modifications?: seeing a bearish wedge pattern
Did you hold a core position until you noticed a reason to sell?: yes
Were your executions goods? yes

Grade: A
(1=D, 2=C, 3=B, 4=A)