BAC Trade on Mar 5, 2021 09:41 from tjmiller2001: Tradervue User Stock Trades.

BAC had been strong recently amid a tech selloff that was bringing the broader market down. I had my name on this company because I liked the options spreads and IV percentile. The relative strength and lack of overhead resistance made me excited about taking this long.

After the opening bell, it was showing unbelievable relative strength to SPY. This name was so strong even though SPY kept fading lower. I was hesitant to size up on the initial position because there was no market backing. I couldn't believe how unfazed it was to market weakness.

I got long during a consolidation period with a stop under 37.3 support. It felt so obvious that there was strength behind this name and I knew I would regret not getting in when I noticed how strong it was. Planned to let this uptrend all day, adding on pullbacks towards VWAP. SL was a break of VWAP.

I was also watching XLF, a prominent financials ETF. Looking at SPY and XLF while watching BAC gave me a more detailed picture of where the market/relevant names were headed. I don't usually watch sector ETF's or competitors when I trade a stock but I like this idea.

Around 6:50 this name finally pulled back to VWAP. Under normal market conditions, this would've been a place to add. However, with SPY pulling back so hard I decided not to. I decided that I would rather get stopped out now and find a reentry when SPY strength was back than double down amid market weakness.

At 6:52 I got out when the character changed and it struggled to quickly bounce above VWAP. I did a good job not being too attached to this trade.

Lesson Learned: Size down when you don't have market backing. Even though this name looked good from a relative strength perspective, a mega-cap company will be brought down with the market most of the time. In the future, instead of letting a green trade turn red on you, set your stop slightly above breakeven then look for a re-entry after you get out.