FSLY Trade on Jul 15, 2020 11:09 from CapitalMastery: Tradervue User Stock Trades.

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CapitalMastery

 
Summary

Knew FSLY was going to setup for a bounce reversal play, and was patient for it, but was a bit aggressive on the entry signal, which I don't regret, but I understand why the first 1min 20ma cup break wasn't a great entry point in this trade. We were below the 5min 20ma, and so should have made the trade prove itself move; at least wait for a push through the 1min 20ma, and then a higher high above the 1min 20ma. Here, I accepted the push to the 1min 20ma as the first push, which is probably safer when stock is trading above the 5min 20ma, but here it was a bit risky. That said, I was able to turn it into a really nice trade, and other than having my stop set a little loose at $76.39, I feel like this was a solid trade.

Only thing I HATE, is that I took $1.50 out of a $7 move!

Did Right
  • After Naeem alerted FSLY, I realized there was a dip buy opportunity, but waited for an entry trigger
  • Took some size off once I got a little nervous about the trade, but put it back on after the trade started working. Proud of that.
  • Sized up to almost full size, although this was def a max size trade!
  • Set a really good stop at $0.11 below the nearest half dollar mark, which helped me avoid getting stopped out on a wick down; this should ALWAYS be my strategy. Nearest whole or half +/- 0.11 cents.
Did Wrong
  • Didn't hold nearly long enough, and moved on from the trade shortly after it finally started working. I waited over an hour in this trade, only to get $1.50 out of a $7 move. If I'm going to commit to a trade like this, I need to hold onto a core, and use a trailing stop based on the 1min 20ma supporting.
  • Should have been maxed size, once the back was in as this really was a great opportunity/setup.
  • Jumped the gun on the initial entry; I didn't actually wait until a higher high was put in. If I'm going to do this, it should be with only a single lot, and I should wait for the higher high before adding anymore. Honestly though, it's best to just wait as I'll be able to have more conviction, and size up more in the trade. And if it's going to be a good trade, it's going to go a lot further than the higher high.
Improvements
  • Hold onto working trades until a Reason2Sell; can always take partials, but trade around a core.
  • Consider being a little tighter with your stops, and simply getting back in, if you get stopped out. I could have easily come out with the same result, or better, but without the headache if I had stopped out at $76.89, and got back in once another entry signal presented itself, which it did once $77.50 broke. I would have been able to size in more aggressively this way, and likely make more money.
  • When entering positions via a 1min 20ma cup, I should wait for a pullback to add to my position. This pocket will give me a great place to add to the trade at a great price, and after I've already gotten price confirmation with a higher high. It's ok to start with 1 max 2 lots, but wait for the pocket for good adds.
Next Trade Idea

Would expect some continuation to the upside now that FSLY has sold off, and the wicks have been getting bought up on the daily. Additionally, while the market was selling off today, FSLY held firm at around $77 for an hour, all through the sell-off. This is great relative strength.


Execution detail:

Date/time Symbol Side Price Position
2020-07-15 11:09:31 FSLY buy $77.320 long
2020-07-15 11:10:25 FSLY buy $77.527 long
2020-07-15 11:26:07 FSLY buy $77.620 long
2020-07-15 11:27:38 FSLY buy $77.895 long
2020-07-15 11:41:50 FSLY sell $77.778 long
2020-07-15 11:41:50 FSLY sell $77.740 long
2020-07-15 11:41:50 FSLY sell $77.750 long
2020-07-15 11:50:49 FSLY buy $77.290 long
2020-07-15 12:14:34 FSLY sell $77.990 long
2020-07-15 12:14:34 FSLY sell $77.990 long
2020-07-15 12:18:26 FSLY sell $78.438 long
2020-07-15 12:18:26 FSLY sell $78.400 long
2020-07-15 12:18:26 FSLY sell $78.400 long
2020-07-15 12:19:04 FSLY sell $78.740 long
2020-07-15 12:20:09 FSLY sell $78.763 0


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