TSLA Trade on Dec 14, 2021 09:30 from srosas13: Tradervue User Stock Trades.

Situation After the previous days session there was a lot of weakness in tech and tsla had a level from 940 to 910 this was a big R:R trade that I wanted to take advantage of with max risk. The initial plan was to take 4 contracts and in the event, I needed to exit the trade to scale-out -2/-3/-5 that would equal -1500 in total losses in a worst-case scenario. This averaged a 1r risk value per contract at 3.75 so I needed 7.50 on the contracts to get a 2R trade and that's what I wanted to aim for. Going into this trade I had a solid plan to follow that was a playbook BTA trade that can have a huge payoff. As seen in this trade I enter with a plan but have to adjust the plan on the fly and be flexible to what the market is doing and how I should react.

Self-Talk Before open the 940 level was taken and put in a new low at 935 this already was changing the dynamics of the trade and the R:R at open I wanted to reject at 950 on a pop or take through the lows. As seen on the 1min chart at open the price action started to fail and I entered half of the position as a safety measure. Once I saw the price action continue to fail and build I added 3 more contracts above my original risk measure this was a mistake. I should have stayed with the original plan of 4 contracts because that is what my risk parameter was set for. I added an additional contract because I felt since I got in early with 2 priced at 18.60 this gave me some wiggle room to make some sales. The stock instantly moved against me and tested the 950 level and was rejected. At the top at 950 I added an additional 2 making my position a total of 7 with an average price point of 18.48

The proper move would have been to add only two through the confirmation of lows and in the event I get reversed I can hold my risk with an avg price point of 19.36 that would have brought my max drawdown to -1384 and I would have still been within my max risk sold at +400 later in the trade. That one contract alone bringing the position to 5 on the add threw the total risk for the trade-off.

At the push back to lows I began to let off size and take profit on the first candle. I left some remaining size for a push on the second 5 min candle to get to measured potential at 910 on a flush. When the trade began to build against me and cross over the break-even point I vacated the trade and got out to reaccess and possibly look for a 10am channel.

Coach-Talk This was a tricky trade from the start at the premarket. One approach to this trade was to strictly take the trade as a reject. I didn't strictly reject because off the open I saw selling pressure to lows and didn't get the pop into the 10 day sitting around 945/947. At the open I have to react quickly and think on the fly.

If I would have kept the original 2 cons from 18-21 I would have netted close to the same profit on the trade. the additional risk of 5 cons added nothing to the bottom line but added the potential for increased loss. The key to this trade is adding size always isn't the answer be patient to add in questionable conditions.

1. Size My initial sizing plan was solid. Following the initial plan I would have remained within risk. I added an extra contract being greedy thinking the price action would get aggressive through the lows. I failed this aspect of the trade because adding additional size allowed me to see a huge drawdown on the trade beyond my risk. This is always dangerous territory because the trade can quickly move against you.
2.Entry My entries were good I entered at areas that made sense on all 3 entries
3.Exit My exits on the first 4 sales were well executed going into the 5min bolly and letting off size. The bollys are very strong defenders of price action and are 2 std dev away from a 20ma. Because of this variance, they are strongholds. If I don't see the bollys begin to flush aggressively lighten up the size.

The key to this trade was not the execution but the position size on a tricky trade. I always have to be prepared for the worst-case scenario in case the trade started to build against me. Piecing into a trade works as well, it was a solid idea to start off with 2 cons and work in the trade in case it reversed. In future trades, I want to stay true to my original size profile.