AMD Trade on Apr 7, 2020 09:30 from ffeentrepreneur_smbeqtryout: Tradervue User Stock Trades.

What was the market doing?
SPY was gapping up into R5 273 strong resistance and prior lows from March 6.

AMD was gapping up into R5 resistance 49.1, R6 resistance 49.3, and R7 resistance 49.60.

Right before market open around 9:15 am there was a 10k sell order that went off that brought AMD from 49.2s to 48.9s.

When we opened, AMD had a strong sell candle immediately followed by strong buying right into 49.6 R7 as planned...

What was I doing as a trader?

Today was first day on SMB demo. I thought I cancelled my .2 adds but they filled. So i started in too early on AMD... Wasn't planning on having 500 shares until i was proven right.

When AMD went .40 against me, my initial reaction was downsize into next pullback or below 49 entry. Thats exactly what i did. I covered all to flat so i can wait patiently to get a better read on it.

How can I improve for the next Gap Into Resistance play?

One thing I can do much better is to wait for that 'blow off' action, perhaps start in small as close to my stop as i can (49.75 in this case) and look for a hard stuff move to scale in and play against.

Also notice how AMD held well below VWAP on that 49.20 fail... Make a plan/ rule for this moving forward.

If you enter an A++ position, have size, and it immediately goes against you, comes back down to your entry and doesn't stop you out,Stay calm. That's a sign you may be on the right side. If you panicked, Re-evaluate the position. Take in half to reduce your risk exposure. YOU CAN ALWAYS GET BACK IN. Then look for a valid reason to add back to your position.

"If you think you're wrong, or if the market is moving against you and you don't know why, take in half. You can always put it on again. If you do that twice, you've taken in threequarters of your position. Then what's left is no longer a big deal.”

Steve Cohen.

I also did smoke that vwap short on pops below!

Rules for Gap Into Resistance Plays: (Add here after you think about this trade more throughout the rest of the evening)

Rule 1: There must be a recent over extension for profit taking to take place

Rule #2 If you miss the play, look to join downtrend on pops with vwap