Shared by
ahmad11
First trade: Second day short play in LMND gap and go. Good patience in waiting for the set-up and good add.
Second trade: Low of day scalp (close to a 1-point scalp).
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2021-01-15 09:35:04 | LMND | sell | $153.660 | short |
| 2021-01-15 09:35:14 | LMND | sell | $153.190 | short |
| 2021-01-15 09:36:24 | LMND | buy | $152.210 | short |
| 2021-01-15 09:37:20 | LMND | buy | $153.910 | 0 |
| 2021-01-15 09:41:19 | LMND | sell | $152.120 | short |
| 2021-01-15 09:41:22 | LMND | buy | $151.360 | 0 |
Comments
ahmad11
Thanks and great questions. So, this was a second day play, which typically happens when something closes near lod(for short)/hod (for long). I had a similar short the day before (link below). That trade started because of the beautiful pattern on the daily (extended to the upside, doji pattern and gapped down). I kept it on my list and noticed that it had gapped down (and was therefore a setup for second day play).
As for the entry for this trade, 154 was important support (from pre-market and a few days ago). So, once it lost that level, I was able to go short, risking that level.
tradervue2020
Great thesis! Solid execution esp the entry. Takes skill and conviction to enter so early. You mention 165 level as important on tape. Was this the size of "green" fills on T&S? Any recommended filter size for tape reading ? Eg >500. I see too many small executions and hard to make out. Anything else? Sorry I am new to tape reading. Hope you don't mind.
Not at all. I watch T&S and Level 2. I watch T&S and Level 2 with the goal of being able to tell a story of what's happening. Are there more buyers? more sellers? Who's in control? Are bids stepping up or hold? or asks? It's still work in progress, but tape reading is one of the few leading indicators; charts, etc. on the other hand are lagging indicators.
Here are a few helpful videos on watching tape that you might find helpful:
Hope this helps and best wishes on your trading journey. Start small, really really small. Get consistent and then increase size.
tradervue2020
Thanks you sir!
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Great trade! Quick q if I may: What was the entry thesis? Seems like VWAP break with open print. Anything else? Thanks!