FB Trade on Mar 2, 2021 15:43 from tjmiller2001: Tradervue User Stock Trades.

Tried to fade trade FB into EOD.

I saw relative weakness in this name and was a little bit nervous because FB weekly OTM contracts can move quickly. Didn't want to get short on a red candle so I waited for a move higher and got short at 260.50 with a 3:1 RR. SL at 260.80 and TP at 259.60

My stop was tight but looking back on it, it wasn't at an important level at all. That level broke quick and I was suprised to see this change in character of strong buying. I was slow to get out at the top then it downtrended the rest of the day. The exit was at the high of the move but it was a late exit not an early exit because I was slow to listen to my rules.

The entry was the problem, I got in too early, during a change in character. I want to try the following fade strategy:

If something is fading and showing relative weakness to SPY, wait for a series of green 1m candles. After the close of a red 1m candle, enter short with a SL above the most recent green candle or the high of the red 1m candle, whichever is higher.

Using the above strategy in my playbook is likely to work out much better than just getting short during a retracement of a down move. I'm predicting price action and I should be reacting to it.

Lesson Learned: Your entries should make sense, meaning you should wait for the price action to tell you something, then get in. Don't get in and hope that you timed a reversal right. Your levels should make sense. Don't make up levels just to have a good RR. Identify the meaningful areas and place a trade only if an opportunity is there

Lesson Learned: An A+ trade will have a TP and SL level at places that matter, not just areas that help me with a 3:1 RR.