Shares traded: 720
Closed Gross P&L: $-60.32
Gross Return: -0.45R
SNAP got crushed on earnings after hours, despite a beat, due to slowing user growth and views. Was looking for a trend reversal opportunity, and when SNAP opened above the 5min 20ma, I started looking at the 1min chart for an entry signal, which I thought I saw, but in hindsight realize I jumped the gun. While on the 1min chart, it looked like we were going to get a 1min cup, per my strategy, I was supposed to wait until the first 5min bar closed, and then buy above it's high, which never materialized. In fact, when looking back over the trade, I can see that the short entry signal triggered on the 5min chart, although not much meat was on that bone.
Anyhow, started a long position, and quickly added on the next 1min candle as it appeared to be going up. Unfortunately, this trade idea did not work, and I got stopped out shortly after. I noticed some immediate buying/support after I got stopped out, so I jumped back in, and was able to catch an immediate bounce attempt up through VWAP, and sold into strength above VWAP as the stock started to stall; this ultimately helped me cut the loss in half. Although, had I set a tighter stop as I was supposed to, per my strategy, I may have actually made money on this trade, as opposed to taking a sizable loss.
The one thing I want to point out in this trade is that it brought up those same frustration feelings that normally put me on tilt, but this time I was able to maintain control and coach myself through it. Super proud of that, which is mostly thanks to Meech and Trading in the Zone. Looking forward to continue building up this mental muscle!
SNAP held fairly firm today, and also a couple upgrades reiterated at around $27.50-$30, so expecting a continuation of the reversal started in 2nd part of day 1.
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