UPS Trade on Oct 20, 2021 10:27 from AtlasVanguardPaperTrading: Tradervue User Stock Trades.

Market Lesson: UPS 10-20-21
Major Mistakes in Planning:
I think this was a solid trade that I planned out well as you will read below. However the flaw in the planning was taking on too much size for what was not really the greatest set up. I also utilized options with lower volume and oi than I would prefer or am used to.

Major Mistakes in analysis:
So on my chart I have a pennant that is not very well drawn and it looks like it is over HOD but if I had a level drawn for HOD i would be able to see that this gapped down and that should have led me to flatten and not worry about catching the VWAP bounce because it was too aggressively being sold and buyers were nowhere to be found.

It is also apparent that sell volume is picking up by the uptick in volume as price pulled back.

Major Mistakes in executing:
I really did a bad job of seeing the overall weakness at the levels UPS was at but I really got out quickly once I saw the VWAP was not holding.

Major Psychological Mistakes:
I think adding to this position was a mistake because I went in with full size from the start. Adding the position could have activated my amygdala and caused much bigger issues and a larger loss. My reflexive cut of the trade saved me bigger losses. Need to make sure I dont ever try to get back in a trade like this because I missed any opportunity to short and I could have really chew up my BP trying to chase.

TA chart:
image

Trade plan:
The plan was to buy the bottom of the pattern and get out if VWAP is broken. THe problem is I decided to add at VWAP which probably works well a lot of times but the price action was telling a story that I needed to exit before VWAP instead of add. The add was too mechanical and not really intuitive or aligned with what i should have been seeing as an objective discretionary trader.

How you plan to avoid this mistake in the future:
I plan on making sure to pay attention to levels closer and the way that price was acting. I should also have some sort of confirmation to add instead of just trying to get a better price.


Execution detail:

Date/time Symbol Side Price Position
2021-10-20 10:27:54 22 OCT 21 195 CALL buy $1.640 long
2021-10-20 10:35:29 22 OCT 21 195 CALL buy $1.450 long
2021-10-20 10:37:51 22 OCT 21 195 CALL sell $1.290 0


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