SMAR Trade on May 11, 2020 11:54 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• 1h Chart: Uptrend, Consolidation below recent highs.
• TTM Squeeze: 1h
• Earnings Date: 6/16-

Reason For Entry:

• Playing 1h chart. SMAR is in a pattern of consolidation below recent highs. TTM is in a squeeze and momentum is shifting positive. The chart has developed an Ascending Triangle and looking for SMAR to continue its uptrend to make new highs. I scaled into this trade in 2 lots: 1st entry at between the 8ema and 21ema. Price consolidated and I added another contract at the same level as price showed strength rejecting the 21ema. Risking 2% of portfolio (full position size).

Reason For Exit:

• The pattern on SMAR was broken and I honored my stop and closed the position for a small loss (less than 1% of portfolio).

Recap:

• The pattern was correct as SMAR made a strong move up and consolidated below its highs. The entries were spot on between the 8ema and 21ema. I risked a full position size (2% of portfolio). The pattern on SMAR was broken and I followed my rules and closed the position for a small loss (less than 1% of portfolio). The takeaway is that I had SEVERAL opportunities to Average Down on my position and I did not due to already holding a full size position. This helped me in a big way because after the pattern was no longer valid, I closed my position for a small loss. Although the trade failed, by position sizing correctly, I had a minimal loss.