NKLA Trade on Sep 15, 2020 09:30 from akulatrade: Tradervue User Stock Trades.

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akulatrade

 

$NKLA

Catalyst: nikola receives a lot of hate about its recent controversy about them faking their electric truck and overall being rumored as a fake company, obviously I wont take this seriously as a fact, but the heat around this I definitely will.

My edge: every reaction is an over-reaction, assuming this will create a reaction

Pre-market: the stock has come down 7%

My plan: shorting when price action confirms my thesis

What happened: My overall trading condition was very weak, bad sleep hours, worked all day before market open, no quotes available as im trading from my phone, and the market opens as im in a car on my way home, to be honest I should just watched what happened instead of going in the trade.
As the market opens I really just jumped the gun at the first minute, a sharp fall in the price happened and it convinced me right away, unfortunately my expectations weren’t the case at the open, and after 2 minutes the stock has risen full point in seconds, which was my stop loss, so I was forced out, 2 minutes later after a small correction, I jumped in again as I felt this will be a short play, but it wasn’t for this moment, the stock risen a little bit more but I was forced out at a third of a point because I cannot risk another point against me, fortunately the stock didn’t rise more than that, and stated to consolidate for the next 4-5 minutes, as price action shows weak up direction and the consolidation forming into a low breaking trend I went in again with a larger position as my confidence grew larger and I saw this opportunity to profit of this stock at this stage, went in twice and recovered some of the losses.

What I would have done differently: I should consider this stock as more volatile and really waited few minutes for a strong formation of a direction, I wouldn’t treat this situation as an obvious one because when I did I jumped at the first sign, which wasn’t enough at all.

What lessons can be learned: differentiate the more volatile stocks from the lesser ones, because more volatility means more noise, I really fell for the noise at the beginning.
And especially not jumping the gun at the first 1-2 minutes of a volatile stock.

What could have happen If I done this differently: I would have seen that the stock doesn’t fall that much, then spikes up, at this point no position has been made, and at consolidation at the top and the weak upper movement I could enter my short position more safely.


Execution detail:

Date/time Symbol Side Price Position
2020-09-15 09:30:24 NKLA sell $32.630 short
2020-09-15 09:40:09 NKLA buy $34.200 0
2020-09-15 09:40:57 NKLA sell $34.020 short
2020-09-15 09:43:35 NKLA buy $34.350 0
2020-09-15 09:45:30 NKLA sell $34.250 short
2020-09-15 09:48:44 NKLA buy $33.620 0
2020-09-15 09:51:35 NKLA sell $33.820 short
2020-09-15 09:53:46 NKLA buy $33.340 0


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