NIO Trade on Oct 14, 2020 10:37 from tjmiller2001: Tradervue User Stock Trades.

5:1 RR trade on NIO. Name was up over 15% and holding above VWAP well.

The trader I was 1 week ago would've set an order to buy a few cents above VWAP, trying to predict price action, a reversal in this case. The trader I was today was able to effectively react to price action instead.

I saw a turn in price near VWAP, set my levels and got in. I was up a little as price was over halfway towards my TP level. A decent sized red candle appeared near a diagonal line of resistance and my initial reaction was to panic and get out. Instead, I was mindful of this and decided to buy this as a dip when I saw the next candle open up green. Once I saw more selling, I realized that I was about to let a green trade turn red so I got out of both my shares.

In hindsight, this looks like a panic, but in real time I thought I was protecting myself from an downtrend coming soon. The name didn't trend lower all day, moving from my exit at 25.10 to a HOD near 27. This comes down to changing the plan once you've entered. My levels were strong and still holding, I should've kept them in charge. In the future, I should size off 1 contract or a small bit of my shares to lock in profits but let the rest go. Especially with shares, there's not a huge rush to get out when you're up because the liquidity is there.

Lesson Learned: Scale out instead of rushing out if your SL hasn't broken but you see weakness that you don't believe should be bought.