SPY Trade on Jun 2, 2021 14:57 from tjmiller2001: Tradervue User Stock Trades.

SPY was uptrending throughout most of the day, holding above VWAP until around 12:30. After it rejected VWAP as resistance, it formed something similar to a symmetrical triangle from 1:30 to 3:00.

I wanted to short the upper trendline of the triangle instead of buying the bottom trendline because it was making lower highs and earlier put in a lower low around 2:15. This was a sign of weakness to me, and it told me that I should attempt to get short on any pops.

I had a 5:1 RR and I was very patient with my entry. After I planned the trade, it took 17 minutes of tighter consolidation before my entry was finally triggered. Since this was not a supply and demand strategy move, I was fine missing it. This meant I was super picky with my entry, fighting for price more than usual and giving it very little room.

It is important for me to understand that I need to allocate less risk to setups like this where I don't have an edge. I like my risk management here.

At 2:57 I was filled on a wick up and immediately made a plan on what it would take for me to move my stop loss to breakeven. My plan was to move my stop to breakeven if price got under 419.74 which is near recent SPY consolidation support. If the bottom fell off, a retracement up much higher would prove my short thesis wrong.

At 3:00 I wrote: "Trying to breathe and give the trade room to work. I can't control the direction, just how I react to the movement."

I've felt tense during trades recently. I'm risking so little money here, I shouldn't act like I have $1,000 on the line in this position. To be a successful trader, I need to be able to emotionally handle the possibility of losing money. Having a system with a data-backed edge that profits in the long term will help me become more comfortable with taking losses.

At 3:02 I wrote: "I don't like the large bottom wicks but it is still downtrending so I'm still in."

Despite moving lower, SPY was seeing orders bought up quickly when a candle would dig lower. I felt more comfortable in the short thesis because this was on low volume.

At 3:10 I was stopped out. At thatpoint price was holding above the triangle. I didn't want to get long on the triangle breakout because VWAP was still above to act as resistance and VWAP above signifies weakness.

Lesson Learned: When you don't have an edge, be very picky with your entries to keep losses small while you're practicing new setups.