MSFT Trade on Oct 16, 2019 10:24 from littrean: Tradervue User Stock Trades.

DAYTRADE DETAILS ON WHY I TOOK THIS TRADE.

CHARTS:

WHY DID I TAKE THIS TRADE?
MSFT had a strong day yesterday but it ran right into heavy resistance and the sell-off continued into today’s pre-market. I had it on watch because I couldn’t find any negative news on the company and I figured at some point sellers would get exhausted and buyers would regain control (even if just for a relief bounce.)

I watched MSFT sell off all the way down to the lows while I was managing my NVDA trade. I thought buyers would step in at $140 and when it broke that level I was actually surprised so then decided to only go long if it broke back over $140 and passed VWAP. At the time I didn’t have my 6-day EMA plotted from the daily chart otherwise I would have identified the area between $139.75 and my pivot line of $139.60 as a strong support and that would have been the area to watch for a bounce instead of $140. Missing out on this meant I waited so long before taking an entry which resulted in the Calls being up over 40% before I even entered.

Nonetheless, I was happy with my patience and once I saw price hold above VWAP I took an entry also identifying the mini uptrend. Reading L2 on this was nice become the spread is just a couple pennies and the spread on the option was 1 cent at times. Ideally, I wanted to see price get back to HOD and go green on the day but buyers were not strong enough to crack $160.60 which was identified on the tape.

CONFIRMATIONS:
aggressive buys on tape, L2, VWAP hold, trendline

SETUP:
- dip buy

STOP LOSS / PROFIT TARGET / RR RATIO
- stop: 3m close below VWAP
- pt: HOD
- risk reward: 1/4

WHAT COULD I HAVE DONE BETTER?
- I could have traded this with more confidence because the risk was low and I was patient enough to let the play set its self up
- should have taken profits at the $140.60 area especially after I saw the trouble on L2 and the tape. Plus the wicks kept increasing on the 5min with a lower high before it broke below the trend line. I didn’t need to wait so long to stop out.

I had the same trade idea for ROKU and should have traded that instead since the opportunity cost was much more profitable.

ROKU actually made it back to it's high and went red to green