FB Trade on Feb 12, 2021 09:45 from tjmiller2001: Tradervue User Stock Trades.

4 Trades on FB and only lost $3. Not proud of losing money, but if the trader I was 3-11 months ago traded 10 contracts of something in a day, he would be revenge trading or overtrading and would've lost more than $3. Glad I can keep losses small and trade the same ticker multiple times in a day and not be trading on tilt. Out of 4 trades, 2 Losses and 2 Wins.

FB was not in play due to a catalyst but the 269 level was extremely strong, acting as resistance for 4 days then it broke and acted as support for 3 days. This level was being hit and being used as a launchpad for reversal traders often. Since this name was not in play AND a megacap company, I was expecting it to trade closely with SPY, like AAPL does. Due to this, I watched SPY all day and looked for relative strength/weakness and SPY backing for my entries/exits.

++ Trade 1: Got short on FB with 3:1 RR when it was showing relative weakness to SPY and at LOD while SPY was at HOD. I felt that if SPY turned red, this name would really tank. I didn't feel comfortable sizing up because
1) I didn't have a ton of confirmation that the break below 269 would hold
2) I didn't want to get big while SPY was hot

My entry was strong because the prior 1m candle had high selling volume at a crucial level. I felt that lots of longs would have their stops under 269 so as more volume came in, I felt this would accelerate. SPY had a large green candle at 6:46(9:46 on this chart) and that pushed FB up with it.

I made the correct call to avoid sizing up due to SPY strength, as this is the reason I was stopped out, cut my loss quickly.

++ Trade 2: Noticed a change in character, got long with 3:1 RR when I saw FB relative strength. Expecting to see the same pattern as the previous 2 days, a dip down to 269, a rounded bottom, then an uptrend. However, the previous 2 days, that dip happened midday. Here the dip was in the first 15 mins of trading. Need to look at the time of the pattern developing, not just the pattern itself.

My entry was great. I didn't fight for price by buying as close as possible to support and hoping it doesn't break. I waited for a higher high on the 1m, then got in on a dip buy. This meant that I had confirmation of the uptrend, but wasn't chasing at all by buying on the higher high candle.

Once the trade starting working for me, I used the 9 EMA as my trailing stop. I ended up getting out when SPY was at resistance and FB lost momentum. Good job adjusting the plan due to a valid reason. Got out before a pullback back to 269.

++Trade 3: I shorted two tops at exactly the right time and basically broke even on the trade because
1) The IV on the contracts dropped as the day went on
2) I didn't take profits into momentum
3) I wasn't sized big enough on either entry

There were two entries and two exits in this trade. I entered the first FB short right at VWAP, could not have fought for price better. Not too early, got in exactly at VWAP, well done.

Entered with an amazing 10:1 risk-reward. Usually, I'd size up big time if this kind of RR was offered. I had a valid reason not to, SPY had just gone parabolic to the upside and I didn't want to bet against SPY. Of course, I can look back on the price action in hindsight and say, "You should've been bigger there!" But in real-time, I made a smart decision based on market conditions and what I was comfortable with as a trader.

I missed a golden selling opportunity when FB dropped hard from 269.95 to 268.95. My TP level was just cents below at 268.90. But I didn't sell because my take-profit zone technically wasn't hit AND there was the potential to drop even harder if the nearby LOD couldn't hold. After 3 giant red candles came 5 straight green candles. But I held. I watched my unrealized profits melt away as price ran back up to 269.80.

I should've been willing to sell near the dump to 269 because my risk-reward had changed. At this point, I would be taking profits if it dropped .10 or getting out for a loss if it went up 1.00. I wasn't thinking that my RR had changed so I held. I need to be aware that as price changes, my RR is changing for better or worse.

Once price was a little under my first entry, I was red a few dollars. I was disappointed that I let this run against me and struggled to avoid cutting the loss. But it still had not made a higher high and VWAP resistance was right above. I'm proud of myself for staying strong and trading the chart instead of my P/L. Instead of selling I got in another contract right under VWAP. I should've sized up here because of the tight RR. This had a tight stop so good RR. This was my momentum lot so I was looking to sell quickly when I saw any hint of strength. Rode this down for a few minutes and got out at a good time when I saw two strong green candles.

Let the last contract ride down to support and I was quicker to get out when it bounced off 269 again.

This trade had very strong entries, 1 missed exit opportunity, but 2 decent exits (given that I didn't sell on the golden opportunity).

++Trade 4: Got in short when I saw FB making lower highs amid SPY weakness. Entered with a 4:1 RR. Stop loss was if I saw a higher high on the 1m chart. TP was at 269 support. I planned on getting out there then reentering if support failed. This consolidated for a little bit then jumped up to get rejected by VWAP. I was pretty slow to get out here, could've been quicker. Not sure this is a high probability setup on its own but given the extent of the SPY weakness going on, I felt good entering. Not a bad trade, just not an A+ setup. I was correct to size down here.

Lesson Learned: Use a trailing stop and be willing to reenter if necessary. Take some realized profits and if the opportunity is there, you can always get back in. Size up when you have anything better than a 5:1 RR, you should be pretty massive when there is market backing or other strong reasons to support a 10:1 RR trade.