NIO Trade on Jul 8, 2020 14:49 from CapitalMastery: Tradervue User Stock Trades.

Summary

Killer alert from Chris. I had been waiting for this setup to present itself again so I could nail it. I witnessed it on MRNA, and INO, when they each had that first initial crack/slam after a monster run up, and made a note to myself to dip buy it next time it happened at the bottom of the panic. And so once Chris asked if we had gotten a piece of this short, my mind immediately went to the dip buy opportunity, and it worked out perfectly. I really feel like this is a trade that should consider throwing 50-75% of my daily risk on when it appears as it's such a high probability trade.

Did Right

• Successfully used past trading experience to drive trading decisions in realtime.
• Had wish orders below $12, hoping for the whole dollar flush, but just couldn't get there. Either way, want to make it a habit of having wish orders out there for those flushes just in case, as it offers amazing entry opportunities that often become the wicks on the best price candles.
  

Did Wrong

• Should have at least saved some wish sell orders for $12.99 as it was a logical magnet for the stock.
• Use more size on these setups as they're not available every day, and so when they do happen, I really need to take advantage of them.

Improvements

• Create a "Stalking" section on my watchlist, and add these types of opportunities. Basically, whenever there's a runner that's blowing up shorts, and that everyone is talking about, start watching those names for that BIG move that all the shorts are waiting for, and once they get it, buy the dip. Key thing is not being early on these though, and you do that by waiting for the panic selling to come in. You want to see that proportionally extra long exhaustion/capitulation candle, that looks like everyone just gave up. Longs reached max pain, and just gave in. A good indicator for this is 2day VWAP; you ideally want the big move to be below that 2day VWAP so you know longs are for sure hurting.
• On the bounce back up, consider using 5min 20ma and 2day vwap as exit targets. NIO bounced right ot the 2day VWAP; only the wicks went above it. At least consider those for wish exit orders.