Daily Report Card: D
-morning prep: D
-market prep: C
-stock prep: B
-level of focus: A
Rationale:
-yesterday BABA showed relative strength vs. a weak market and also found support at the earnings PM high (182.75)
-this morning BABA was gapping above 185 daily level
-note there was positive sentiment / optimism re: trade agreement this am which puts this name in focus for me
-fresh news this morning as Macquarie initiated coverage on BABA with an outperform rating
-this was a prior 2nd day play (earnings) with confluence of price breaking out of multi month range
Trade Strategy:
-enter on pullback to 185
How much risk should/did I take?
-173; 1.4% of NLV
-only entered 1 tier, but reduced tier size to 1 until i’m able to prove consistency (1 month)
Recap / Trade Management:
-made 4 trades on BABA; 2 leaning against the 185 level, 1 leaning against the PClose and 1 leaning against the PMH (managed poorly)
-I could've avoided the first trade and exited much faster (when I saw the 185.20 bid drop), was catching the falling knife, but didn't fight for price or have confluence with SPY
-2nd trade was entering on consolidation above PClose, quickly got out as soon as price printed below level
-3rd trade was entering on consolidation above 185 (missed getting in on the retest of 185); managed this trade well - good entries and good exits. didn't have high expectations given we were w/in the premarket range so tried to take what the trade would give me
-4th trade I entered on sideways consolidation but added 3 tiers into strength and got chopped up when price pulled back toward PMH; kept 1 tier on and was able to exit for a small profit
What did I do well?
-keep risk tight on 3 of the 4 trades
-keep tier size to 1 lot
-identify consolidation in real-time
How could I have traded this better?
-avoided the first trade
-been more patient on the last trade, was too aggressive on my adds
-better identify where my risk is; should have been risking below the PMH at 186.15 instead of a break of the consolidation range; and the retest is where to get more aggressive, not as price moves away from the level
What did the tape look like during the most important moments intraday?
-no noticeable size on the tape at areas that made sense to enter
Where could I have been responsibly bigger?
-on the sideways consolidation above 185 AND during the retest of 186.15 PMH
Gain/loss relative to expected gain/loss:
-net loss after commissions
-could've been a nice winner if management of 2nd trade was better
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2019-11-22 09:33:34 | NOV29 19 187.5 CALL | buy | $1.730 | long |
2019-11-22 09:37:04 | NOV29 19 187.5 CALL | sell | $1.580 | 0 |
2019-11-22 11:54:18 | NOV29 19 187.5 CALL | buy | $1.430 | long |
2019-11-22 11:58:21 | NOV29 19 187.5 CALL | sell | $1.370 | 0 |
2019-11-22 12:11:38 | NOV29 19 187.5 CALL | buy | $1.510 | long |
2019-11-22 12:13:16 | NOV29 19 187.5 CALL | buy | $1.530 | long |
2019-11-22 12:31:14 | NOV29 19 187.5 CALL | sell | $1.680 | long |
2019-11-22 12:44:16 | NOV29 19 187.5 CALL | sell | $1.820 | 0 |
2019-11-22 14:54:42 | NOV29 19 187.5 CALL | buy | $1.910 | long |
2019-11-22 14:54:52 | NOV29 19 187.5 CALL | buy | $1.910 | long |
2019-11-22 14:55:38 | NOV29 19 187.5 CALL | buy | $1.930 | long |
2019-11-22 14:56:12 | NOV29 19 187.5 CALL | buy | $1.950 | long |
2019-11-22 14:58:59 | NOV29 19 187.5 CALL | sell | $1.860 | long |
2019-11-22 14:58:59 | NOV29 19 187.5 CALL | sell | $1.860 | long |
2019-11-22 14:59:03 | NOV29 19 187.5 CALL | sell | $1.860 | long |
2019-11-22 15:00:19 | NOV29 19 187.5 CALL | buy | $1.960 | long |
2019-11-22 15:03:32 | NOV29 19 187.5 CALL | sell | $1.920 | long |
2019-11-22 15:39:54 | NOV29 19 187.5 CALL | sell | $1.970 | 0 |
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