AMD Trade on Apr 7, 2020 09:57 from ffeentrepreneur_smbeqtryout: Tradervue User Stock Trades.

What was the market doing? (Building off of the prior trade)
After AMD's hard sell off from the gap into resistance play, AMD was bouncing 1/4 of an ATR into VWAP and showing weakness near VWAP (.80 move off the lows).

AMD was also forming a rising wedge pattern with 3 weaker pops after each dip along the rising wedge trend.

The first failed vwap breakout attempt still held trend above 48.5 and attempted to break above the 48.68 prior wick highs, spiking to 48.8s but was very quickly met with some selling pressure and wicked back down below vwap... confirming the failed vwap breakout.

What was I doing as a trader?
After AMD had shown 3 exhaustion candles on the 1 minute, I shorted half size AMD at 48.58. When 48.5 held firmly and got a bid, i immediately covered for break even because usually when the .5s show strength, it can wick out up to .7s/8s before turning.

As planned, we got the .7s/8s wick out and instead of me stopping out here, I added into the strength.

Now.. one thing im unhappy about here is my sizing on this trade. This deserved MUCH MORE risk. I bet too small and it messed up the trade. (See below on why and how I can improve for the next one good failed VWAP breakout trade)

How can I improve on Failed Vwap Breakout plays?

Notice the time of this failed vwap breakout... before 10 am. Great stop out for even when it failed to get heavy and break below 48.5 when you entered.

Good job here reading the market and re adding back your position in the .7s.

How ever, bad job on sizing this trade... You could have been much bigger and trippled your size as 48.5s cracked, moving your stop to break even for half the shares.

The difference between you adding triple size and getting big is the difference between piking out at 48.43 and capturing the full move back down towards the lows.

The reason why it's important to smack real size here is because let's say you hit 500 shares with 48.65 average, risking .20 stop at 48.85. If you triple up your position as 48.5 builds as a new resistance point and as price moves in your favor, breaking the rising wedge, you can now move your stop to break even for 1,000 shares at 48.57, hold your remaining 500 shares with a real stop at 48.85 and keep yourself in a position of strength.

Hitting this play with more size allows you to cover at key levels and ring the cash register along the trend.

Example can be covering 500 shares for 1R at 48.37.

Cover another 500 shares at 2R 48.17

Letting the chart reset a little bit... time consolidation below the prior 48.3 pullback low from the 2nd leg up from the rising wedge. Let's see if buyers step up to reclaim 48.2s. Nope. Sellers staying in control.

Add back your covers 48.15 with a stop above the 48.26 wick high.
and trailing these shares for a low of days retest at 47.9.

Maybe even have a plan to cover 1/3 at 48.03, and another 1/3 if we flush fast to the 47.7s... trailing the rest with a .20 stop down to 46.8 lows. (The trailing stop would stop you out at 46.87) Thats much better than covering the shares yourself much earlier than needed.

New Rule Idea: I like the idea of creating a rule for you to always put on a .20 trailing stop for the last 1/3 of your positions. Let's test this out and see how it impacts your trading!