GOOGL Trade on Feb 14, 2023 11:26 from Maarten: Tradervue User Stock Trades.

GOOGL 14-2-23
Market play

Thesis:
“-SPY fell below 413 inflection and sold off after what was a strong open. Didn’t manage to continue and sold off on elevated volume. Breaks down 410 and LOD as well.
-GOOGL is the weakest stock of all market stocks I am watching. Had some prior bad catalyst and sold off a lot. Just broke down the 50SMA as well. Intraday price action was also relatively weak to the market: other stock were pushing but GOOGL consolidated below VWAP during the open.
-Highest volume buzz of the market stocks and down the most since the open: 1.87% vs 0.9%.
-IF SPY can truly trend down, THEN I would like to short GOOGL.”

Risk and opportunity grade
“Potential bottom has formed as SPY might have done as well.
GOOGL is definitely the best stock to short.
SPY has a bearish catalyst: missed CPI. But SPY is in a range and has plenty of support levels. But if SPY is going to be weak, it would be weak today. So I am going to be aggressive with the entries. Risking 25%.”

Very happy with the trade idea itself.
-SPY was weak.
-SPY had a bearish catalyst.
- I picked the weakest market stock and traded it
- I noticed the risk of SPY bouncing at support.

Next I should be more specific for an execution plan. I wrote down:
“If GOOGL bounces into the 9EMA, THEN I will risk 12.5% and short risking the top. Has to be a clean bounce.
IF GOOGL bounces into the 20EMA, THEN I will risk 25% and short risking the top.”

Execution
I was being patient and was waiting for more weakness. I decided to not put my risk above the inverted hammers, which was at .42, when the next close was trading at the 9EMA at .25. I was going to stop out above .25 anyway. I picked 30 cents manually. The idea to set a tighter stop was right, because I wanted this PB to work quicker. I was going to stop out for a higher 5m candle anyway. So that’s where my risk should have been.
Had I put in .25 in my risk sheet, then my entry would have been at 93.06 (25%), and now it was at 93.01 (32%). I risked 12.5% as I said I would do. Taking good prepared playbook setups is more important then the risk.

Price made a 2.5ATR move given I risked 30 cents (would have been 4R with the right entry!!) I knew 408 was a support area for SPY so this was a potential place to bounce. The price action was very volatile, so getting stopped out was a serious risk. I took off 30% at 2R to take some profits.
The next candle made a new high and did more than above average volume. This is a potential sell trigger. We started to trade along the 9EMA, I was watching for a significant close and trailed up my stop to BE. I was also ready to add for a clean bounce.
Then, on increased volume, price stormed through the 9 and 20EMA and I stopped out on my core BE. I made 0.66R.
I made a little bit of money on a trade idea that didn’t’ work! I should have made more, but the most important thing is executing on my one good trade ideas!