TWTR Trade on Jul 23, 2020 09:36 from CapitalMastery: Tradervue User Stock Trades.

Summary

This would have been my best trade of the day, had I not gotten myself stopped out. This trade was liquidated prematurely after exceeding my daily stop loss limit on other trades. Thing I'm most proud of is that although my initial bias was short, I was open to the price action, and once TWTR put in a 5min cup above the 5min 20ma, I went long. Would have been a really nice winner.

P.S. TWTR ended up breaking $40, and staying above there for a bit. Good catch!

Did Right

• Had a plan and bias going into the trade
• Remained open to a different bias if the price action went against my original bias
• Waited patiently for the entry signal, although I jumped the gun and entered on a 1min 20ma cup, but while below the 5min 20ma.
• Although I had put some sell orders in to take profits quickly at $39, I cancelled them once I remembered that I wanted to try and hold these for longer.
• I sized up to 4 lots when I realized this trade was working.

Did Wrong

• While the entry price would have ultimately been the same, I did jump the gun on this entry signal. While looking back over the chart, I see that I entered on a 1min 20ma cup, BUT we were still under the 5min 20ma, and so our entry signal would have been a 5min 20ma cup, which we did get. Would have enabled me to enter the position with max size, and full conviction.

Improvements

• Look into updating my risk manager to leave open trade that are working.
• Consider starting trades with 2-3 lots, but looking to add 1-2 lots on a pullback above the 20ma, as long as the 1min 20ma is holding. This can give great prices before the move kicks off.
• Work on using limit orders to get better prices; I've been getting terrible prices using market orders on the open. Even at the risk of missing the trade, I should use limit orders as the spreads are killer on open.

Next Trade

After today, I would expect a reversal; maybe a gap up + reversal like AMD?

Playbook Trade