SRNE Trade on Aug 5, 2020 09:33 from WuManChu: Tradervue User Stock Trades.

Idea, Entry, and Risk:

*Idea: Short vs P/M highs and
*Entry: (Intended) Pops vs VWAP, add in as it breaks down.
*Risk: 1:3

Catalyst and News:

(Purportedly) late carryover from the surge on the news of a 30-minute Covid Saliva test. Something's fucky.

Fundamentals:

The usual trash that gets support for whatever reason. Awful income and poor earnings report. Trade's in the cards.

Technicals:

168.63M Float but 29% Short Float.
-Strong gap up P/M and over-extension during the previous few days, but no real breakdown yet. $SRNE has a history of being annoying to short and going longer than many think it should.

Summation:

*The Good: Patience, didn't panic at pops (all lower highs), watched tape like a hawk.
*The Bad: Scared myself on size on pops and took off, severing gain potential. Took last exit a bit late.
*The Ugly: Horrendous initial entry.

Fantastic trade opportunity marred by a mind-boggingly awful execution, that was only saved by the clear indications and the patience to stay in when it wasn't going my way. They say that traders are trigger happy when green and stubbornly patient when red, but the signs of a downturn were there the entire time.

For some reason I entered at the 13.50s during the opening flush when I had literally spent the entire morning telling myself to wait for pops to enter and not short bottoms/chase flushes. Put on about a quarter of the shares I had borrowed on this when frankly it should have been a tenth, so that I could have been more comfortable sizing up. I did at least size up once on the first pop, but got antsy on the second and took back down to the size I started with.

Once it finally cracked and I had enough confirmation that it had kept failing vs the P/M highs and HODs, I felt confident staying in and waiting for it to finally break down. Took off a portion of my position once it took a major crack and then again after the momentum shifted when it hit the 12.70s.

Takeaways:

I don't know what it's going to take to break this awful habit or even where it came from, but no more shorting bottoms. Or at least, taking proper chase size if I am.

Exit wasn't the best but it was still substantially better than the entry. Red trade turned green isn't a thing to make a normalcy, but it was definitely still a trade of note.

I kind of expect that at some point, I will think I've hammered this habit out of my system, and then I'll do it again and the results will likely be catastrophic. Thankfully, I believe my risk control is strict enough that I'll still be in the game.