NVAX Trade on Jul 17, 2020 11:32 from CapitalMastery: Tradervue User Stock Trades.

Summary

I was admittingly a bit on tilt when I took this trade due to the morning loss in NFLX and JBHT, and so while the trade worked out, it was a bit reckless. I didn't really wait until the stock got very over extended on heavy volume, and I didn't have an entry signal. That said, I did notice it was squeezing out due to the long 1min candles, and I started in slowly, with a single lot, and systematically scaled into the short as it made a push towards the psychological $145. Fortunately, that was the top for the day, and NVAX flushed down shortly after, which I quickly covered into for a decent profit.

Did Right

• Waited until the stock was at least squeezing out on elevated volume; it was hitting my over extension indicator.
• Stayed within my sizing guidelines
• Started with a single lot, and scaled in slowly
• Covered on first flush, given that it would have still been front side.

Did Wrong

• Took a trade without much thinking due to being somewhat on tilt, and in "make back" mode.
• Didn't really have a stop had the stock completely gone against me, which is hard to do with trying to trade the front side of these things, which I'm not sure I should really do anymore.

Improvements

• Try waiting until backside for these trades; I mean, you could have just as easily hit it on the 12:10 re-test of highs, got great prices, but with the added bonus of it being backside and you having a clear place to put your stop. Honestly, I'm noting it right now; this is how I must take these trades going forward. No more frontside; there's literally no point. I'm only taking unnecessary risk when trading these trades frontside. Cut it out.
• When I notice a trade get overextended and climatic, simply wait, rather than start a position. Wait for the spike, pullback, and failed re-test. Short the failed retest, with stop at previous high. If a re-test doesn't happen, so be it, you don't need to hit every trade. But when it does work out, you can actually size up in these trades as you can often have a super tight stop; your stop on this trade could have been $0.27
• As you get more experience with these types of trades, get in the habit of recycling shares on the backside. Keep cover into flushes, and re-entering/adding on pops; so long as the downtrend holds, and the stock keeps making lower highs.
• Being trying to nail the long opportunities in these trades. I cannot keep missing $17 of upside, for a $5 short. Get them both! On days like today, the uptrend is clean; ride it up into the climax! I could have easily entered in pre-market, 5min before open, for a killer price. The entry signal was there.

Next Trade

Expecting a major trade on NVAX and MRNA on Monday or Tuesday. They're way over bought right now, and there will be a pullback that I'd like to be there for. Just keep being patient, and wait for climax + backside; can't go wrong with that method.

Playbook Trade