BABA Trade on May 12, 2023 11:01 from Dandres: Tradervue User Stock Trades.

Open
Trade 1: VWAP break stopped out (Loss)
Trade 2: VWAP break stopped out (Loss)
Trade 3: Was FOMO and jumped in short on candles that were developing to the upside?? Completely threw the trade book out the window with this one. Third time getting stopped out due to me trying to me right. Your job as a trader isn't to be right, its not to predict the markets, its to manage your risk, follow your trade book and protect your money. You need to wait for the RIGHT CONFIRMATION.
Trade 4: Entry shorts on the break of the VWAP (this is the real confirmation) First add on the break and second on 1 min candle confirmation developing lower lows/highs. Didn't let the trade resolve completely, my patience got the better of me on this weak stock. I did stop myself out because of 2 subsequent 5 min bull candles but they didn't even completely get close to my stop loss yet. The trade did resolve to the downside and yet again I lost out on some good moves.
Reflection
- Currently, your tight protection of your money is also costing you money.
- It is best you dont stop out of your position while your trade idea is still valid, especially if you have a very nice entry. With a nice entry you can afford to risk a couple more cents.
- As a new rule of thumb to protect your assets but also lets your trade idea resolve if the trade idea is still valid, don't stop yourself out early until the price has gone above or below your initial entry price depending on the direction your trading and is doing so on very very strong confirmation that it is highly likely it will not go in your favor.
DONT CONSIDER stopping out while your idea is valid, CONSIDER stopping out ONLY once the trade is past your entry price and approaching your stop loss on SOLID SOUND confirmation that it is highly likely it will not go in your favor.
(This only applies before you have taken any partials)
(If you have taken partials, you should not let a winning trade turn into a losing or break even trade)