DOCU Trade on Jul 14, 2020 09:32 from CapitalMastery: Tradervue User Stock Trades.

Summary

I'm most proud of this trade today as it would have certainly turned into the trade that ruined my whole day, had I not stopped out when I realized the trade had failed. This is huge progress for me, as I typically hold, dig my heels in, and fight. I'd usually add, add, add, all the way down until I was at max size and max pain, and then stop out at the bottom, assuming my daily stop hadn't stopped me out for the day, before then.

Instead, I stopped out, which helped me avoid nearly $5 of downside per share, and put me in the perfect position to re-enter in the $182s, and ultimately turn this trade into a winner. Super proud.

Did Right

• Traded DOCU with a premeditated plan, and waited for an entry trigger (1min 20ma continuation cup) to start a position.
• Stopped when the price action showed the stock was going lower, and was not ready to bounce. Best part is that I stopped out knowing I would take a pretty good hit to my PNL, but did the right thing anyway.
• Re-entered my position at the bottom, once I realized the bottom was in.
• Took some profits at the 1min 20ma, which was a good place for a partial
• Came back into the stock once I realized I had exited way earlier, and at least scalped some additional gains.

Did Wrong

• Although I'm happy I stopped out, I could have stopped out a little sooner, I def felt some resistance in the moment, and had I not witnessed the DOCU bids decrementing quickly at $190, I would have gotten out way too late.
• After finally nailing the bounce, I took my entire position off way too quickly. I exited the entire trade where I should have only taken a partial at best. Similar to the ROKU trade, I should have waited for a Reason2Sell to exit the rest of my position, and potentially even added some when the 1min 20ma test supported/held. On a serious note, I left $11 on the table, on a trade I had planned for. Holding something for the long term is 100% one of the very next areas of improvement I need to focus on. I need to build up a list of clearly definable reasons2exit, so I can start getting the meat of these moves. I have way too many 1:<1 risk vs reward trades, I need to start getting paid out on these, but in a responsible manner of course.
• Totally missed that DOCU was selling off towards the daily 20ma, and the $180 psychological whole number, which is the perfect recipe for a bounce. This could have given great conviction in the trade, to size in, and hold for longer. What a waste :-/

Improvements

• Hold great trade setups, like this one, longer! This could have easily been a $500 trade, had I simply held a small 50 share position.
• Be more willing, and quicker to exit trades on the frontside, especially when they haven't started working yet. Behind holding winners longer, cutting losers quickly would have the nest greatest impact on my overall PNL.
• Be more aware of the the bigger picture context. Where is the stock in regards to the daily, and the major levels (daily 20ma, 200ma, vwap, prior day high/low/close, support/resistance, etc...)