ROKU Trade on Sep 20, 2019 09:59 from beno: Tradervue User Stock Trades.

Big Picture
- SPY Hovering near ATM (302), having hard time breaking level
- Saudi Aramco attacks causing volatility in oil prices, production back by end of September
- Lingering fear of US/China trade war / Trump grants more tariff exemptions
- Fed approved next rate cut of 0.25% (new rate is 1.75-2.00)

Markets Intraday
- PM: Consolidation between 300.50 and 299.80
- Morning: Consolidation within PM range – not much movement
- Afternoon: Quiet until 1:15pm when Trump talked about China trade, SPY fell to 297.5 but trended up to 299
- End of day: Break down back to 297.7

Technical Analysis – Long Term
- LT uptrend, above 200-day SMA
- Growth stock

Technical Analysis – Intraday
- Day1: Gapped down $7 on competition news, sold all day
- Day2: Bought on OD and in the afternoon, opened at 128, closed at 134.
- Today: Gapped down from 134 to 127 which is below day-2’s low.

News / Catalyst
- Many new competitors entering the streaming space:
- Comcast giving free xFinity streaming box with new subs
- Facebook enters TV Streaming box space
- Traded below 119 support from last months gap – could fill gap to 111

Original Plan
Long on a reclaim and hold of 128 (important level from 1rst and 2nd day).
Short on a pullback if PM level of 125.5 breaks.

Execution Notes
The OD was strong to the downside and price went from 127 to 120 in 9 minutes. A consolidation period followed where I was looking to get long. My first attempt was a breakout trade when tried to break below the range for the first time, got filled at 120.21 for 1 lot. I gave myself a $1 stop which is 5R (I wanted to risk half my daily risk because it was a good idea and had the potential to move since it broke below prior days lows. I stopped myself out at 121.10 when I saw buying pressure come into the stock. I tried the trade again as I saw a resistance line form for 3 bars (9 minutes) at the 121.60 area; I got filled for my second attempt at 121.21 with a mental stop above the 121.60 range at 121.70, only risking 2R this time. The price proceeded to break down and I wanted to cover some risk so I turned my 1-lot into micro lots of 10 shares each, I covered 4 micro-lots between 120 and 118 while holding my last micro-lot as my core position. The stock showed support at 116 so when it came back to test it after it pulled back, I covered my final lot at 116.47.

Review
I liked how I tried the trade again and it worked the second time. I also liked how I turned my 1-lot into 5 micro lots; I don’t trade higher priced stocks often so I had to adapt my methodology to accommodate risk management with this higher priced stock.

Now the negatives of this trade: a lesson that keeps coming back up in my review is to hold a core position. I regrettably didn’t follow this rule today. My Reason2Sell was some buying pressure coming into the 116-support area but I feel I didn’t give the stock enough time, I was to worried to lose my profits. The other negative is I didn’t add to my position when the stock pulled back to the 119 level. This should have been an easy addition to my position as the stock broke below yesterdays support (128) then broke below last months gap support at 119! My thoughts were clouded and I couldn’t see the bigger picture.

Grade Questions

Did I follow my plan? (yes/no/with mods): yes
Which modifications?:
What justified the modifications?:
Did you hold a core position until you noticed a reason to sell?: No
Were your executions goods? Yes

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