ESU1 Trade on Jul 8, 2021 09:37 from Kingkillabee: Tradervue User Stock Trades.

Managed Wrong

Reason for entry: This was a bad trade. On the 5 min, there was a breakout bar above the premarket range along with the 21ema starting to get a positive slope. I also thought there might be a measured move up from the premarket range (which there eventually was but my timing as off). There was also a break above the bearish descending broadening wedge, which often leads to a HL-MTR (higher low-major trend reversal). This did lead to a HL-MTR but it was very ugly and hard to interpret. Easiest to see on a 30 min (2nd pic). The VIX spiked up 25% today, so everything is moving very fast and very large. Several 10 point 5 min candles in the first hour of trading.

What could have been done better: I did NOT follow my rules. We had the bull breakout but I did not wait for the next candle to close and confirm follow through. I jumped the gun thinking I would get a good price on the pullback before it pushed up. I shouldve waited for the follow through confirmation of the breakout.

What was done well: I realized I made a dumb mistake and sold 2 contracts 3 minutes later at breakeven. I left 1 lot on to see what it would do and it shot down against me 3 points.

I was humble in realizing this was probably a bad trade, so I immediately sized down and took the loss so that I could be ready for the next trade.

What was missed: The amount of overall bearish pressure (both from the overnight crash and even the selling pressure in the most recent range had more bear strength).

The bear bar closing back in the range immediately after the breakout was the sign I shouldve closed everything. Instead I held on longer.

Emotions: FOMO. I jumped into this because I didn't want to miss the move to the measured move target up from the range. I held on to the position too long because I was married to the idea of it going up.

Today's market environment with the VIX spiking 25% is a new trading arena for me. I haven't seen steady volatility like this, so my position sizing was off today. Im grateful for this experience and to be able to survive today and learn from this.

How could I have lost less money: Wait for confirmation of the breakout with a follow through bar. If consciously choosing to be aggressive and trade before confirmation (which I was not) trade small and be fast to exit when a reversal bar prints.