AAPL Trade on Oct 12, 2020 09:46 from tjmiller2001: Tradervue User Stock Trades.

As my account struggles with repeated losses in both my day trades and swing trades, I am making a conscious effort to size down and limit my risk. I have accepted that I wont make any notable sum of money this week, and instead I will be completely focused on the process and learning by trading shares.

On the 5m chart, SPY was consolidating and moving slighly lower at the open while AAPL was showing strength. since these tickers tend to trade similarly, this divergence gave me the signal that AAPL was showing relative strength.

Instead of looking to enter while the uptrend had momentum, I waited for a pullback to VWAP where I entered with a tight stop and great 5:1 RR. I felt good about my entry becuase SPY was consolidating not downtrending at the time of my entry.

This entry was likely premature, instead of waiting to see "the turn" as Mike Bellafiore calls it, I simply entered based on price. It is somewhat logical to believe that VWAP can act as a level of support often, but an elite trader doesn't take their entries solely on price. Waiting for more confirmation that VWAP is a valid level that is holding would decrease my RR to something like 4:1 or 3:1 but that ould increase the probability of me exiting with a profit.

Bella talks about entering 20% of his risk on price and the other 80% once he see's the turn in price.

My exit was strong, getting out quick for a small loss. However this was likely not a trade I should have entered. This wasn't a textbook VWAP bounce setup because weakness was shown at the open before seeing strength. Knowing this, I should enter based on a turn near VWAP instead of a price tap of VWAP.

I noticed that my entries and exits were a lot smoother, as in, it was easier to get filled than on an options contract. I like this because if a trade starts to move against you, the increased liquidity allows you to exit quicker at a better price.

I was risking $0.10 to make $0.50 on a name that ran $5.00. I may be too zoomed in, focused on scalping small moves instead of riding larger moves. Risking $0.50 to make $2.50 may have been the better trade here given my inability to see and time reversals at a very accurate rate. I may want to stop my tight-stop scalpers mindset and think bigger picture.

Lesson Learned: Entries can be taken when a turn is seen, when a price is hit, or a mixture of both. Most my entries are based on price. Also, I have a low win %. To increase my win %, I will try taking entries after I see a turn taking place. Stop scalping, start day trading. More risk per share, more reward per share.