JAN Trade on Nov 25, 2019 09:30 from Chigozie: Tradervue User Stock Trades.

Why did I want to take the trade?

Great daily chart, nice history of running. Was looking for a run to $9.00.

What did I see?

Opened weak, looked like normal profit-taking. Scalped the first bounce to VWAP for a 40 cent move.

What was the downside potential?

VWAP would get slammed through or not hold. This happened on the third VWAP test. I shouldn't have taken it just like how I don't trade the third pullback.

What was the upside potential?

Break of 7 and a move to 8.

How did I manage the trade?

Bought the first dip to VWAP and sold the pop on the second candle, as it was showing resistance after a weak open. Bought again anticipating the breakout of 7, but this failed. Bought again after break of 7, but missed entry at 7 so bought at 7.19 anticipating a break of premarket highs and a move to 8. I am fine with this because I had reduced share size and it is in my plan to "chase the breakout" if a fail back to breakout level is in my risk tolerance. This one failed. I then tried to buy the final VWAP bounce but it was the third pullback to it so had a higher chance of failing and flushing, which it did. I will never play the 3rd pullback to VWAP again.
Lastly, got in on break above VWAP, for the reclaim. It broke above and held, but still, no follow through, and it flushed back down.

I managed my risk on all of these trades fairly well, but need to bailout even quicker on these spready low floats, as even a millisecond of hesitation will trap me in a flush.

My risk level wasn't exactly well defined to the penny, as the spread was pretty whippy, so instead had "areas" I was looking to bail out at. This resulted in larger than normal losses.

What was I feeling at the time?

Annoyed that there was no followthrough. Most breakouts I buy into have no followthrough and the ones that do I am always sized in on them too small. I don't want to stop buying breakouts because a lot of them are very profitable. I may just have to quit buying them in a small account.
####What did I do wrong?
Overtraded and didn't stick to buying pullbacks on this spready name. The daily chart gave me confidence to buy the breakout, anticipating a move to at least 8. I also bought the 3rd pullback to VWAP.

What did I do right?

Bailed out as soon as the trade went against me, just not as quick as I'd like. Also I left the stock alone once the VWAP reclaim failed.

How can I improve in the future?

Don't buy the third pullback to ANYTHING. I'm going to chalk this one up as a typical Monday without follow through. It's easy to look back and beat myself up on the failed breakouts but the reality of the matter is that those could have easily worked out and resolved to at least premarket highs of $7.30. There really has been poor followthrough on a lot of these names, but all I can do is continue to risk $10/1% on breakouts, unless there's been a lot of followthrough that day.

Also, I should be mindful and know how many losing trades I take in a row. I was already down 3 losers so shouldn't have traded that VWAP reclaim. I should stick to this rule to encourage myself and be more mindful of only trading the best setups, so not taking the 3rd pullback to the VWAP for example.