NVDA Trade on Oct 16, 2019 09:42 from littrean: Tradervue User Stock Trades.

DAYTRADE DETAILS ON WHY I TOOK THIS TRADE.

CHARTS:

WHY DID I TAKE THIS TRADE?
NVDA was one of my top watches following yesterday’s breakout of the semiconductor ETF, SMH. The plan was to watch for a continuation of momentum to retest yesterday’s high of $199.29 even though NVDA was selling off pre-market.

I did not have the downtrend charted from yesterday's high otherwise that would have given me a signal for an earlier entry, instead I waited to see a break of the pre-market high (which actually coincided with yesterday’s close) with increased volume.

However, once the price broke I was hesitant to react because of my lack of confidence in taking momentum plays. I was watching level 2 and saw buyers being aggressive but was still afraid that the price would whip back down to retest the breakout level. To not chicken out I market ordered in 1 contract which just took off from there and I took profits on a break of resistance line from yesterday.

Once NVDA pulled back to my ema I watched L2 to see if support would kick in, and once I had confirmation I joined the bid for 2 contracts with the intent to sell at HOD. Shortly after, a huge drop in priced flushed the stock to VWAP which would have given me a really nice time to buy but I was not confident as I was fearful that buyers were exhausted from yesterday’s bull run and bears had actually taken control. However, in hindsight, I see that that was actually a flush to fill orders at the breakout price (which is what I initially wanted at about 9:12am.

Not feeling confident I sold at the first sign of profit because I didn’t want to take a loss on the trade even though the price worked its way up nicely to yesterday’s high which was my actual profit target.

CATALYST:
Yesterday's price target increase

CONFIRMATIONS:
L2

SETUP:
Breakout, momo continuation, pre-market range break

STOP LOSS / PROFIT TARGET / RR RATIO
- stop-loss: a close on 5min under premarket high
- profit target: yesterday’s high
- risk reward: 1/4

WHAT COULD I HAVE DONE BETTER?
- I could have reacted quicker and felt more confident trading this momentum play
- also could have taken on more size once I saw that kill candle get bought up on the VWAP and prev day close bounce

I actually did not have this trendline plotted pre-market which would have signaled an earlier entry for me on this breakout of the temporary downtrend

I had eyes on the SMH which confirmed the push to highs but also signaled a reversal. Something to pay attention to in the future.