ZM Trade on Jul 15, 2020 11:26 from CapitalMastery: Tradervue User Stock Trades.

Summary

This is my worse process trade of the day. Jumped the gun on entry, without a valid entry signal, and was stubborn stopping out. I basically felt like I relapsed a bit on this bad habit. I was eventually able to stop out, but I got back in immediately, and so I'm not going to pat myself on the back. Once the market stop selling off, and I noticed an exhaustion candle + volume spike on ZM, I quickly re-entered my stopped position, and went max size for backside, which helped me get back all the lost gains, plus a little extra. I also did a pretty decent job holding, and getting the bulk of my exits near $252; would have been better if I used stop orders with $251.74, but good exits overall.

Unfortunately, just like FSLY, I left nearly $10 on the table, because I moved on from the trade. I was in this trade for an hour, and then when it finally started working, I got out. At a minimum, I should have gotten back in, and used the 1min/5min 20ma to help trail a stop.

Did Right

• Despite getting right back in, and being way too loose with my stops, I am proud that I actually stopped out, and that I actually had a stop in place. While I need to do so much damn better.
• Sized in to max size once the bottom was actually in, this helped me turn the trade around

Did Wrong

• Did not have a valid entry signal when I entered this trade. I totally jumped the gun on thinking the bottom was in. I could have easily just waited for the typical entry signal, and avoided the entire sell off headache, which would have put me in a great position to get the backside of the move, and likely stick around for the all day rebound.
• Should NOT have gotten right back in after stopping out, should have waited, and made the price action earn a re-entry. In this case, it would have been the exhaustion candle that signaled the bottom of this move. Had I not gotten right back in, I could have avoided $1.25 of downside, and re-entered with great prices, and turned this into a pretty damn good trade.
• Should have stayed with the stock, and looked for a re-entry opportunity. Just like with FSLY and BA and ROKU, ZM offered a great all day rebound opportunity that I totally missed out on.

Improvements

• When I get stopped out, I will be more patient, and wait for price action to give me a reason to get back in.
• Keep stocks on radar after initial trades, especially if the big move hasn't happened, or if I haven't missed the bus once the stock has picked a trend direction for the day. Even more so if RVOL is elevated, and the stock is in play.
• Use the 20mas to help me trail a core position. I have to be willing to hold a core through some pullback to get the meat of the moves. Consider practicing with smaller size until I feel comfortable.

Next Trade

At this point, ZM feels pretty overbought, and is likely in for a bit of consolidation, if not deeper pull in. It was one of the earliest virus stocks to catch a bid, so it makes sense that it may be the first to reach profit taking. Will watch price action over next couple days, but I don't have a strong bias at this point. Felt pretty choppy today, and without the big market sell off today, I don't think ZM would have had any nice moves like it did. The sell off basically shaped it's intraday price action today.