QQQ Trade on May 28, 2021 14:55 from tjmiller2001: Tradervue User Stock Trades.

QQQ had been uptrending for the past week and I was watching for puts at 3 hour supply after a 1-2 PM selloff.

Two big red 1m candles occurred at a used 3 hour supply zone at 14:52 so I knew I wanted to get short on a retest. I set my order with a 3:1 RR and barely got filled at 14:55 before the move down started. Great fight for price here.

After the consolidation I experienced before a NIO uptrend earlier on this day, I was acutely aware of my rules if consolidation were to occur.

At 2:55 I wrote: "If I see consolidation under 334.94 3 Hour Supply, I will exit. These 0DTE contracts can lose value quickly if no volatility comes in. a 1m close under 344.80 means I will move my stop loss and start trailing it."

During the 15:00 candle, selling was bought up and I panicked. I didn't sell, but I noticed that I was very emotional during this trade. At 3:00, I wrote, "The 1m candles mean more to me than they should, I need to zoom out." This is good self-awareness during the trade, I didn't talk this way to myself in the past. The emotional voice in my head talks back and forth with the calm rational voice. Eventually, the rational voice will be consistently louder. I wonder how I can make the rational voice louder? More experience or something other than that?

At 15:06 I said: "Downtrend still intact, still holding but wary of how VWAP has held for 7 minutes." At this point I had been continuously moving my stop loss down. I'm glad I held during VWAP consolidation because a big drop came soon.

At 15:11 I said, "Big Move down, I want to sell into strength but I'm not sure how to do that."

At 15:28 I was finally stopped out when the downtrend trending broke a new 1m higher high was made. I got an awful exit fill, I put my SL at 1.51 and it filled me at 1.41.

I should expect slippage on 0DTE contracts that have a ten-cent spread to begin with. That slippage should factor in to where I set my stop.

It is more likely that two massive red candles will be followed by a retracement and consolidation than by several more massive red candles. The rational decision is getting out while IV spikes then getting back in when IV has cooled down and another leg down could occur.

Lesson Learned: Sell into strength, defined as two large 1m candles going in the direction I want. There will likely be a small reversal move and consolidation where I can get back in, buying the contracts back for cheaper after the volatility has cooled down.