Shared by
cavaliercapital
This is a tricky trade. some real good and bad points in here from me.
Firstly, no chase entry which is unusual and a good sign on my part. Waited for a bounce at $20.25's and added to that pop, risking above VWAP. covered into the immediate flush for a 50 cent gain. solid trading.
Reading the tape the 19.80s level had a real battle and adding those shares at 19.80 & 19.75 was a mistake. needed way more patience for a move toward, and confirmation of a failure or 20.25 level. nice add there at 23.60, though covering on the pops around 20 just shows impatience. those adds into that 19.80s levels were lucky, trying to anticipate the breakdown, which did happen but reduced avg price and created unneccesary risk. great covers into 19.20's
as the price action moved back up toward this 19.80 level, with 1m candles showing lots of wicks and reading the tape I felt like this was going higher, but still added in ultimately stopping out for b/e which was a waste.
The real kicker here is not setting an alert for the a) VWAP fail and retest from 10:45 and b) the much more high prob trade of the 19.80s break down around 11:15.
**
Lessons Learnt****
1) Trust yourself when youre reading the tape. If lots of transactions occuring at a level, and candles cant close below it/ showing wicks then thats confirmation you shouldnt be in the trade.
2). Set alerts on a stock your trading, dont just nail and bail. if you are getting familiar with the price action, why waste that.
poor trading overall here, the only thing im really happy about is that patience on first entry. everything else i cant help but feel i got lucky.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2020-08-04 09:34:00 | JMIA | sell | $20.360 | short |
| 2020-08-04 09:34:00 | JMIA | sell | $20.360 | short |
| 2020-08-04 09:34:03 | JMIA | sell | $20.460 | short |
| 2020-08-04 09:34:08 | JMIA | sell | $20.640 | short |
| 2020-08-04 09:34:56 | JMIA | buy | $20.100 | short |
| 2020-08-04 09:34:56 | JMIA | buy | $20.050 | short |
| 2020-08-04 09:34:58 | JMIA | buy | $20.010 | short |
| 2020-08-04 09:34:59 | JMIA | buy | $19.800 | short |
| 2020-08-04 09:35:35 | JMIA | sell | $19.750 | short |
| 2020-08-04 09:35:42 | JMIA | sell | $19.810 | short |
| 2020-08-04 09:36:17 | JMIA | buy | $20.100 | short |
| 2020-08-04 09:36:17 | JMIA | buy | $20.100 | short |
| 2020-08-04 09:36:17 | JMIA | buy | $20.100 | short |
| 2020-08-04 09:36:46 | JMIA | sell | $20.360 | short |
| 2020-08-04 09:36:59 | JMIA | buy | $20.130 | short |
| 2020-08-04 09:37:00 | JMIA | buy | $20.050 | short |
| 2020-08-04 09:38:53 | JMIA | sell | $19.910 | short |
| 2020-08-04 09:38:53 | JMIA | sell | $19.890 | short |
| 2020-08-04 09:39:06 | JMIA | sell | $19.790 | short |
| 2020-08-04 09:39:06 | JMIA | sell | $19.840 | short |
| 2020-08-04 09:39:14 | JMIA | buy | $19.660 | short |
| 2020-08-04 09:39:14 | JMIA | buy | $19.650 | short |
| 2020-08-04 09:40:23 | JMIA | buy | $19.600 | short |
| 2020-08-04 09:40:26 | JMIA | buy | $19.440 | short |
| 2020-08-04 09:40:36 | JMIA | buy | $19.290 | short |
| 2020-08-04 09:42:00 | JMIA | sell | $19.880 | short |
| 2020-08-04 09:42:00 | JMIA | sell | $19.880 | short |
| 2020-08-04 09:42:00 | JMIA | sell | $19.880 | short |
| 2020-08-04 09:42:07 | JMIA | buy | $19.880 | short |
| 2020-08-04 09:42:34 | JMIA | buy | $19.740 | short |
| 2020-08-04 09:43:32 | JMIA | buy | $20.065 | 0 |
Comments
cavaliercapital
thanks for the feedback. Yes completely get that small size adds in breakdown anticipation. thats starting to feel like not so much of an edge to me anymore, yesterday AMD got burnt anticipating an even that never came.
yeah played the defensive side well i think.
so the frustrating part was that once Id hit that trade i left it alone. Didnt set any alarms, took it off my watchlist. Thats one of the big takeaways, keep an eye on it. If i've taken the time to get familiar with pa/tape etc then shouldnt waste that knowledge. need to see it through to the end of the day!
and yes, those early covers are something I desperately need to work on. I dont know if thats confidence in the thesis, sizing issue or just a skill i need to develop. But 100% correct, focusing on that.
dpaleo
Yea def need to keep names that are very much in play on radar for later in case a new setup emerges.
I think its probably a confidence thing right now. But that will get better with more experience. Also, these names that are doing multiples of their float in volume and are being controlled by and algo are very very tough to trade. They are pros and know how we humans thing - they set traps accordingly. So for someone who is relatively new I think you did a fine job here.
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Dont think your trading here is that poor. Really tough name - like you said most 1min candles had wicks all over the place. Initial entry is good but your buys in the same minute candle are very impatient, esp when thinking big picture for this setup (i.e. it has a chance to fade points, not just cents). Yea that $19.80s area was a support level but i dont have any problem hitting bids with SMALL SIZE if it feels like its gonna crack - a lot of times when there is a level like that in these names, when it breaks it really flushes and makes it hard to add 30 or 40 or 50 cents lower.
The best thing you did was exit all when it remounted $20 and started smelling like that move was a giant trap. Thats good instinct. Dont underestimate how great that defense you played was. I myself only took a partial stop and ended up getting punished on that spike to highs.
Did you re-trade the backside of it?