GE Trade on Mar 11, 2021 10:25 from tjmiller2001: Tradervue User Stock Trades.

GE was in play bc it recently announced a reverse stock split and the sale of one of its major aviation units for $30 billion. This meant that institutions had their eyes on the name.

It gapped down premarket and was very red at the open so I was hoping to short the pops. My strategy was to wait for a series of green 1m candles, followed by a red 1m candle, and enter short with a close stop above the high of the red candle. I did not follow this plan well.

Around 7:19, GE had recently made a LOD so I liked the idea of getting short on the next bounce. I saw 4 straight green 1m candles followed by a red candle. I got short two contracts at 12.18 with a SL at 12.22 and a TP level at 12.06. This trade had a 3:1 RR and I liked getting short with SPY at resistance and GE showing relative weakness. Entered the fade trade at 7:25.

I did a great job following my rules and exiting at 7:28 at my SL level, but I was slow to get out on the next contract 4 minutes later. I need to be quicker with my exits.

Around 7:37 I noticed that 12.30 was a tough level on the tape for buyers to get price past. I liked the idea of shorting below this level with a stop right above it. VWAP was also nearby at around 12.35, I felt this level could also act as resistance.

I got confirmation of a downtrend at 7:39 with a large red 1m candle and set my levels. I entered short at 12.27 with a SL at 12.31 and a TP level at 12.11, so this had a 4:1 RR.

I used level 2 for my 10:41 entry, with the ask size heavier than the bid size. I liked that VWAP was above to act as resistance, but I was too eager to get into this trade. Instead of shorting below 12.30 and getting stopped out below VWAP, I should've had a wider SL planned or entered closer to VWAP. I was not very patient with my entry here.

Also, at this point I was betting against a pretty strong SPY. Not only did I not have market backing, but I was short while SPY was exceptionally strong.

I didn't exit at 7:44 when my level broke because that level couldn't hold. Good job being patient here.

GE was consolidating despite SPY's amazing strength. I believed that when SPY turned red, GE would fall even harder. After a reject of that key 12.30 level, I added a third short lot at 8:09. This was a momentum lot with a tight stop at 12.31 and a 3:1 RR. I didn't like how I didn't take profits around the 12.21 level so I added this lot with the intention of selling it quickly and holding the other 2 lots for a longer term fade.

SPY strength finally pushed this name above VWAP and I was slow to get out, very slow. This was a decent-sized day trade loss because I was undisciplined and slow with my exits.

I was trading without much sleep the night before and that had an effect on my behavior. I felt like I was gambling today, looking for action, instead of making wise decisions. Gamblers don't last long in this career.

Lesson Learned: If you're coming off a night of low sleep, don't trade at all or trade with small size only if the setup is clear. Without much sleep, you will be making gambling decisions.