AMD Trade on Oct 19, 2020 10:03 from tjmiller2001: Tradervue User Stock Trades.

AMD was in play due to an analyst price target upgrade.

Showed indecision in the first 30 minutes of trading, started with several red candles then uptrended and broke HOD. This initial weakness should have been a sign that the name was not attracting lots of buyers due to the catalyst I initially thought was important.

My long bias took over and I was waiting for the right moment to pounce on shares. Patience was strong here, but I was not seeing what the price action was showing me. I saw lots of strength when I should've seen minor strength since the name didn't open strongly. This clouded judgment may have made me take a trade that wasn't a great setup.

The trader I was a few weeks ago would've had an order ready at VWAP. Instead, I waited on the turn in the tape. Once I saw VWAP hold and a large green 1m candle form, I entered long with a decent RR. I hoped for a 3:1 RR but price moved away from my entry price of 84 quickly so I acted quick and purchased with the intention of adding more at a price that would let me average in at 84.

I was ready to add on a pullback and I did, ensuring that 3:1 RR I had been looking for.

VWAP quickly broke and I did a great job exiting my first lot at a great price, right at my stop loss. I wanted to hold my second lot in hopes of avoiding a fakeout, but this downtrend was legitimate. I struggled to get out quickly because I was too greedy looking for every last penny on the exit.

Lesson Learned: Cut a loss quick. Lose the cocky mindset that you refuse to be proved wrong. Accept defeat and exit the trade instead of mentally talking yourself into staying.