NIO Trade on May 24, 2021 10:40 from tjmiller2001: Tradervue User Stock Trades.

NIO was the stock to play today. It was on my radar but I was watching other names at the open. This name had a positive catalyst that I was not aware of. The catalyst helped NIO have a massive green day. Being aware of the catalyst would've meant my eyes were on this one. I need to pay attention to which equities have news during premarket.

At the open this name dropped right into my 33.60 support trendline that I drew the night before. It bounced hard from there and moved right to it's resistance I had charted. After more tests at resistance it finally broke it and consolidated above.

I interpreted the consolidation as a sign that buyers and shorts were battling hard and I could pick a side with a tight stop. I sided with the bulls and got long because /ES and /NQ were at HOD and the uptrend was intact. I thought market backing would help this name.

I fought for price well, close to the previous resistance at $34.66 that needed to hold. My stop was super tight, only $0.06 and I had a 4:1 RR.

3 minutes later I was stopped out when old resistance didn't hold as new support. I'm not experienced with breakout trades. Instead of trying to learn them now, I think it would be better to trade supply and demand zones then once I master that I can experiment with breakouts.

It would be nice to learn how to trade equities that just grind higher slowly all day. I had a thesis that it would just keep moving higher towards EOD, but I didn't have a trade plan for that action because it lacked support and resistance levels/ a set of highs and lows.

Lesson Learned: Know which equities have a news catalyst, pay closer attention to those