NIO Trade on May 28, 2021 11:44 from tjmiller2001: Tradervue User Stock Trades.

NIO had been uptrending for the past two weeks but it hit resistance at a 1 hour supply zone I had drawn out. After rejecting that level hard and making a series of lower highs, I wanted to play the short side if it broke under the 38.40 level that had acted as support twice during that day.

I waited for the level to break then planned to get short on a retest of the triangle breakdown. I got short around $38.30 and I could've fought for price better. I had a 3:1 RR but it quickly broke through the 38.40 old support, held it for 3 mins and broke below. It immediately ran back above above the level with a large green 1m candle and I was stopped out. My TOS fill was pretty bad on the exit.

I was tense while in the position because the contracts were moving quicker than I thought they would. This is the danger of using 0DTE.

At 11:50 I wrote: "I don't have tons of faith in the position but resistance is holding and I don't think selling during consolidation when the long term trend is down is smart."

In the future, I should set rules for when to sell during consolidation. Some logic says that your winners should wok in your favor almost immediately. Some logic says that consolidation indicates that sellers or buyers aren't in control, so there is no reason to panic sell until the other side shows strength. I think more experience will help me develop trading rules for consolidation periods.

After this loss I was on tilt by the high $ amount lost here. I had FOMO over missing an $80 MSFT trade that I planned out but never entered because I saw NIO as the better opportunity. It hurt more because my exit entry levels and TP levels were hit without tocuhing my stop loss. Setting an order according to my plan would've got me in the move. So I was thinking about my NIO loss and my missed MSFT win. I needed to move on to the next opportunity but I struggled to do that.

Lesson Learned: If you're trading a setup where you don't have an edge, like a triangle breakdown, make sure you're fighting for price with a tight stop. You need to be fine missing the move if your picky entry doesn't hit. You don't have an edge in it yet so this is not the opportunity to lose money on. You should be okay losing more when you have an edge in something, and losing less when the edge isn't there and you're working on learning it.