NIO Trade on Sep 25, 2020 09:50 from WuManChu: Tradervue User Stock Trades.

Idea, Entry, and Risk:

*Idea: Bounce to fade play, trading with market
*Entry: 18.30s, under VWAP and key level
*Risk: 1:3 (risk at HOD/18.60s, Target at 17.70s or better)

Catalyst and News:

N/A

Fundamentals:

The Chinese TSLA treading water. Not awful, not great.

Technicals:

Slightly faded chart from ATHs and general downtrend. Trended with the market (read:TSLA), but hardly making waves.

Summation:

Watched morning spike test and fail vs a prior support and resistance level, then slowly bounce and fade down between keys 18.40s and 18.20s/10s. Got in after the first fail at the 18.40s, scaled up slightly on times of weakness. Ended up double the usual 25s size for half, due to the more limited range.

Kept dribbling off the 18.20s and occasionally coming back to try vs VWAP. Extensive weakness held my conviction, but no real action and excessive support vs the 18.10s made this an absolute snore. Held all day while at work with stops in place, but such little action made for next to nothing. Nearly scratched EOD for a very minor trade in the red.

Had a few instances to take off some when it felt like it was on the verge of breaking down, but overall did little.

Takeaways:

-You remember trading this ticker the first time, and how little of a move it made. Same mistake, different day. Remember why you didn't like it the first time?

-Don't think that better borrow fees mean an easier trade. TATT, NKLA, and WKHS were all substantially better trades (if patient), and would have worked out better. It sucks to only have 1-2 hours in the morning and not yet see a move you'd like, but that's what practice is for. TATT's 5x higher borrow fee than NIO's would have resulted in a great trade, done right.

-Float float float and catalyst catalyst catalyst. Even if NIO may be related to the heat of the EV sector, there wasn't much going on with it, in recent days or today. It's also too high float for the volume to have made much of a difference.

-Respect the stops until the trade doesn't do anything. If it's wasting time and energy, either take it off and forget about it, or set stops and leave it. No reason to blow the day watching a sub-20 ticker moving 2 pips every five minutes.