DUK Trade on Oct 5, 2020 15:44 from tjmiller2001: Tradervue User Stock Trades.

Swing Trade on DUK. Entered short with a 10:1 RR. Name is near strong resistance level on the Daily and Weekly.

Catalyst: Failure to reach merger deal with Nextera Energy. This is a merger that DUK doesn't want and the Nextera CEO has publicly ruled out a hostile M&A.

I believe that this names recent run from support to resistance is based on anticipation of a deal and strength in the utilities sector.

Risks: Momentum could continue in utilities sector, pushing DUK up past resistance, a move that may be exaggerated if shorts are squeezed out. A strong RR helps make this a trade worth taking, but I need to be quick to get out becuase it would be logical for other traders to draw levels near mine (meaning lots of longs entering and a quick price pop).

An EOD selloff gave me confirmation for this trade. Ideally, the daily candle would be a red hammer candle not a green one, but I feel good about my entry near resistance.

Update: Level broke to the upside and instead of flipping my bias quickly, I stayed in, "waiting for more confirmation." Deep down I was really just being stubborn and trying to be right insead of reading the reality that the market was showing me. Eventually I got out for a $70 loss, way more than my usual $50 stop loss.

Knowing that 92.20 level break was important, I got long and I'm now watching for more upside. Stop loss is a daily close under 91 and take profit is at 97, this gives me a 2:1 RR.

Lesson Learned: I'd rather be right than profitable. I need to switch that so I'd rather be profitable than right.

Holding on to losers too long and taking profits on winners too quickly has been holding me back from my full potential recently. This is a common problem for other beginner traders, I should talk to consistently profitable traders about how they overcame this.