Not a bad trade. Scaled in at the bottom of an ascending channel with a 3:1 RR. Sold quickly when my level broke for a small loss. Would take again.
I like the way I scaled into this position. I did a good job getting out as soon as my thesis was proved wrong too. This is the blueprint for what a loss should look like: Entered near an inflection point, got out fast when level didn't hold.
Some things to be aware of that I wasn't watching close enough: Volume on 6:51 (9:51 on here) pullback was higher than I would've liked, and it was being weak at a time that SPY was strong. Not sure I would've changed my position size to be smaller because of that, but I would've been mindful of those 2 factors, which would've kept me from being too attatched to the position, and help me with quick exits.
SMB Capital talks about knowing what can go right and also what can go wrong while in a trade. If you are conscious of both the bull and bear perspective, this prevents you from believing that all your trades will definitely be winners, and that mindset makes you justify changing your rules mid-trade without much reason.
Lesson Learned: Scale in for a better entry price, but be ready to cut losses quickly. The key to this is recognizing when your thesis is wrong and not hesitating to exit.
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2021-01-06 09:52:36 | SPCE | buy | $24.100 | long |
2021-01-06 09:52:53 | SPCE | buy | $24.060 | long |
2021-01-06 09:53:09 | SPCE | buy | $24.050 | long |
2021-01-06 09:54:38 | SPCE | sell | $24.020 | long |
2021-01-06 09:54:43 | SPCE | sell | $24.020 | long |
2021-01-06 09:55:14 | SPCE | sell | $24.040 | 0 |
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