FB Trade on Mar 4, 2021 14:30 from tjmiller2001: Tradervue User Stock Trades.

I had been watching the 266 resistance and 254-257 support zone on FB for awhile. FB rejected it's resistance and I felt that if it failed to hold support, a lot of people would be trying to get out at the same time.

SPY had been very week today and it came up to give me what I thought was a good entry at a lower high on the 5m chart. Not only was SPY weak, but FB was showing relative weakness, having more trouble moving up as much as SPY. If SPY had a green candle, FB would have a smaller green candle that seemed more hesitant or slow to move up. Buyers did not seem eager to get in FB.

I was a little bit late on the entry but I wanted a little bit more confirmation. 257 looked like solid resistance so I got short with a 3:1 RR on this fade trade.

Psychology while it was working: I felt nervous during this trade. These were cheap contracts but they were far OTM and weeklies so I knew they could move fast.

I stayed patient when I saw a change in character for FB because SPY was still weak. But I could feel that sellers weren't as strong and some buyers were interested. Relative strength can be hard to explain, part of it is feel, which I'll get better at with time.

Psychology after I noticed the change in character: It was tough to stay patient, I felt like FB was ready to rip higher as soon as it got SPY backing.

I wanted to stay patient and in the trade until it hit my stop, even though I knew around 11:40 that something had changed and getting out would be smart. I don't think this was ego or not wanting to admit I was wrong. I think it was confusion on my end about, "When can I change the trade plan mid-trade? Was there enough reasoning to exit or was I just nervous with this position?"

I stayed in despite wanting to get out while it hadn't hit my stop yet, then I did a good job exiting quickly when my stop was hit. It felt like such a bigger loss than $26. Proud of myself for a quick exit and being willing to enter this trade. In the past I've been afraid to put on risk and I've let my trade thesis play out without me in them.

I didn't have the $ to get long but I wanted to and I would've taken advantage of the move from 257 to 260

Lesson Learned: If I notice a change in character, that is sufficient reasoning to change the trade plan and exit the position. I can always reenter if the thesis becomes valid again. I shouldn't stay in a trade and wait for it to hit my stop loss level when I feel confident that it is on its way to my stop loss level.