TSLA Trade on Aug 5, 2022 09:30 from quanphan135: Tradervue User Stock Trades.

The set-up: Break Out/ Break Down/Momentum/Scalp

Pre-Market Prep:

Yesterday close: Tsla closed at 922.
During premarket open: Price was 926 open, high 935.
During Premarket: We have a strong seller, price drop to 906 and consolidate to 910-ish. Because of new economy update (Payroll increase and unemployment rate, hot inflation).

Trading Idea:

Since market fell on pre market, drop 16 points. This was a strong selling pressure signal. We have a key support at 904 and 898. Resistance at 910.

When Market Open: I want to see couple price action first few minutes.
1)If stock could not hold at 910 (at key resistance). I will short at 910-909.
2)If stock fall down to support, if support hold at 898, I will go long.

Trading Time:

1)Fake Break Out (SHORT)

Market open at 908 below vwap, the first 1m candle was tried hard to going to 910-911 (vwap 912).

I follow my trading idea plan and setup. If there opening price is struggle to going up after we had a big sell off during pre market. I bought a Put at 910 (since stock struggle to broke it resistance 910 and create a fake break out). Then I sold my put at 909. ( 1 point gain)

2) Break Down Trade "SHORT"

At the 2nd candle, I notice selling volume increase, the tape told me there is bid at 903 and ask at 905. I know there will be a break down and quickly enter another PUT position at 905. Stock immediately broke it support 904 and trade at 903, then I SOLD my put position at 903.

3) Reversal Setup (LONG)

After broke it support at 905, stock trade between 904-ish at 905, trying to get back at the important support. I saw the buyer very strong on the tape and want to make a reversal. I bought a CALL at 906-ish and sell at 907-ish. After that stock recover back to 910 very quickly but STRUGGLE TO STAY AT 910. Since (we have a fake break out before at the important resistance level 910 before). (Then after that, I make a big mistake)

4) THE MISTAKE BECAUSE CHASING THE PRICE & FOMO(LONG)

After the trade above, stock keep consolidate around 907-910. When I saw the going back to 910, I suddenly buy a call position (without thinking) and thinking is will broke that resistance. And IT DID NOT, as you already know, stock was already struggle to get pass it before, I should not do that, because how can I know stock was going up to 911 to sell position right?

And Yes, after that, I add one more call position at 907 to average my position and hoping to recover at lost. While stock trade at 905-ish, at it support, I bought another call same position to continue average down my current CALL POSITION. (I know 905 was a key support level, but doesn't broke it yet, if it broke I will sell ALL to cut LOST. BUT THANKS GOD IT DID NOT, after few minutes hold my position and waiting, stock does going back to 910 and I sold all 3 position at profit (small profit), I just want to get out my position as soon as possible, because know I was already trading wrong this one and I knew there will be a strong seller at 910 waiting too.

This is a SILLY MISTAKE, and trust me if thing turn bad, I WILL HAVE A BIG LOST!!!

After this, I promise myself won't make this stupid mistake anymore, but instead. BE PATIENCE WITH YOUR TRADE. DO NOT FOMO AND NOT TRADING ON YOUR PLAN!!!!

5) BREAK DOWN(SHORT)

After I sold my position, stock was boost to 913 in second and pull back to 909, that show clearly the a fake break out and seller still took control at 910 level. The stock trade at 905 support level, and I carefully read the tape to make sure this time the 905 support will be break. I enter a put position at 906 and sell it at 904 (broke down). After the broke down important support level 905. Short does continue to fall and trade at 900.

What I did Right:

1) I trade based on my plan at premarket prep and Idea
2) I reading tape while I trade to confirm the price action at important support and resistance.
3) I enter/exit my trade based on my plan and setup

What I did Wrong:

FOMO with the 4th trade, its clearly a FOMO situation without thinking twice and stupid mistake when I want to long a stock (when it weak). And ENTER THE PRICE, when its was at resistance, fake break out. While, I did add on another 2 contract at different price to average my cost, I already have a clear setup to either where to cut my loss or waiting it recover to break even or small gain.

Where I could improve:

Please TRADE

1) CALL at SUPPORT (BASED ON TREND AND LEVEL AND TAPE)
2) PUT at RESISTANCE(BASED ON TREND AND LEVEL AND TAPE)
3) BE MORE PATIENT & DO NOT TRADE WITHOUT ANY PLAN
4) BE MORE PATIENT REGARDING ABOUT MY SETUP, DO NOT TRADE WHEN IT NOT ON YOUR SETUP. YOU WILL REGRET IF YOU DID.
5) HAVE MORE RESPECT OF THE MARKET. DO NOT GUESSING AND ENTERING A TRADE.

Trade grade: B

Video: