MSFT Trade on Jan 6, 2022 09:43 from yoosh: Tradervue User Stock Trades.

Microsoft gapped down below about 2 months worth of candles. The previous candle was red, so I was expecting short to cover in the morning, and this covering would result in a spike.

Unfortunatley I woke up at 1:36am my time (9:36am market time) and I missed the top. I had a line draw at premarket highs as a place of rejection and ideally that is where I wanted my entry.

My first entry was a short position (PUT) which was the only trade I should have taken today. I rode this down nicely pretty much to the bottom. I was watching the QQQ very closely as well as it was close to the 100 MA and I was expecting it to bounce of this which would also mean all the big tech stocks would bounce.

My second trade was a breakout bullish trade, i thought a lot of short positions would have had their stops placed above $317 so that is when I got in with calls risking the G/R level. We struggled to breakout so I sold into the second pop, but because of time decay my option was worth less even though the stock was higher.

Lesson: Bearish retest, if you nail the main move, just leave and move on. OR Buy the dip and not the breakouut because your RR is shit.