T Trade on Feb 18, 2021 09:46 from tjmiller2001: Tradervue User Stock Trades.

My main two stocks I was watching today were T and AMC. I had similar expectations for both of them to fade all day.

For T specifically, it struggled yesterday to break past 30 resistance. It hit 29.74 then downtrended into the close. That was a good signal to watch for a short today because T has struggled at $30 multiple times.

Instead of shorting right at the open, I waited for my expected pattern to play out. When I got confirmation that buyers weren't excited about this stock, I stayed patient and got short on the VWAP rejection. Good job fighting for price here. 3:1 RR here.

I'm not very good at reading the tape. But for some reason, recently, I've been able to detect prices that buyers aren't willing to step up to. I'm not just looking at the candlesticks, I'm feeling the movement. This sounds like some bs, but I truly believe it. I'm not great at it in all stocks or all the time, but with T recently, there have been levels where I've felt weakness then seen a drop in price. Glad I'm developing this skill.

I wished I would've entered two contracts at 06:46 (09:46 on here) or bought one contract later when I got confirmation of the VWAP rejection. That would've let me scale out of a momentum lot and protect my profits.

Instead, I wasn't big enough for the flush to 29.25. When that level held and price quickly rose, I didn't have any realized gains in case this turned on me.

I did a good job staying calm and adding a lot at 10:12 with logical levels on my 3:1 RR. I've done a better job shorting at tops instead of covering at them recently. SMB says Fade Trades are usually for more experienced traders, but I think I like them. I'm not saying I'm a master at them or even good at them, I just think they suit my trading style well.

At 10:28-10:29, SPY and T both had two strong green candles with volume. SPY had been downtrending all day so this change in character was enough to make me sit up straight and want to secure some profits. T was also making higher lows, so I felt good sizing down here, shaving off my momentum lot. Good exit here. Theta decay meant that I didn't make much since I entered short at a higher price.

From 10:35-10:40, SPY and T came charging back upwards with large, consecutive green 1m candles.

Got short at 10:42 when T couldn't hold above VWAP and felt weak. Very tight stop, entered at 29.39 with a stop at 29.42 and a TP on this momentum lot at 29.30. My stop would've been a break of 29.41 resistance from earlier that day, which made it a good level. I regret not sizing up here or during the consolidation that occurred during the next few minutes. There was a breakdown then retest of VWAP that would've given me a perfect reentry but I wasn't willing to pull the trigger. The best traders aren't afraid of risk, they know when to use it.

I sold my momentum lot at 11:04 when T bounced off intraday support with a decent amount of volume. I was comfortable taking profits even though I still believed in my thesis because
1) I still had a lot to hold until EOD
2) I let a quick green bounce melt away my profits earlier in the day and I didn't want that to happen again
3) The high volume bounce off a meaningful level was a good reason to exit.

I decided to hold 1 lot overnight because it closed weak. I placed my stop at 29.41 and my TP at 28.51. I'd exit earlier if I see a change in character. This gives me a 4:1 RR.

Good job cutting my loss on last lot here, out of position for $18 loss. Later got back in short when a lower high was made.

Lesson Learned: Pull the trigger and size up at key levels when your stop is tight. Make sure you're holding enough contracts that you can take a momentum lot on and off while still holding your core lot.