Shared by
boldandnuts
Like I said, I did not expect the market sell off like it did.
I watched $NFLX as it broke below 300 and expected it being just a spike lower before a hard bounce.
It was after 5pm already and past my finish. My trade count for the day was still ok and I could take another trade.
I figured 295.50s would hold but was a bit early on my first entry when NFLX showed some support. It didn't.
On its way lower I added at significant points while watching the Tape. 294 showed some support that didn't stick. Next level below 292.50 where I added the next quarter for an average of 294.68.
Selling increased and it looked like a Volume Bottom was forming. Watching closely I added another partial just above 289 with 290 looking significant. Average now 293.34.
I took half off at break even as my average felt too high although VWAP was around 300.
My partial turned out to be perfect and NFLX resolved lower. On the retest of 290 and its bounce I added another quarter for an average of 292.39. Just below a resistance of 292.50.
I took the trade off break-even as I was not happy on how the market looked.
BUT, I noticed and kept watching for levels close by on the other proxy stocks for a possible bounce.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2018-10-29 11:12:00 | NFLX | buy | $296.640 | long |
| 2018-10-29 11:13:00 | NFLX | buy | $294.550 | long |
| 2018-10-29 11:18:00 | NFLX | buy | $292.840 | long |
| 2018-10-29 11:20:00 | NFLX | buy | $289.320 | long |
| 2018-10-29 11:26:00 | NFLX | sell | $293.161 | long |
| 2018-10-29 11:35:00 | NFLX | buy | $290.500 | long |
| 2018-10-29 11:43:00 | NFLX | sell | $292.450 | long |
| 2018-10-29 11:45:00 | NFLX | sell | $292.780 | long |
| 2018-10-29 11:46:00 | NFLX | sell | $292.862 | 0 |
Comments
boldandnuts
Hi!
Thanks for your interest.
To be honest, I am still sceptical about whether my approach is legit. Currently I am collecting stats about it. I posted the results for October here:
https://www.boldandnuts.com/greenday15-wednesday-trading-recap-fb-nvda-nflx/
In the past I often noticed that I often was stopped out when entering after legit signals/confirmations just to see the stock make another "leg" up before reversing lower into my favour.
That happened sooo many times. So I said to myself, instead of taking one whole tear of i.e. 100 shares, once I get my signal, I start with a quarter tier or 25 shares. And stick with it! If the stock makes a move further up, I add another tier once I get another signal or see fit... like after another 2$ up, a Big Order on the Level2 or whatever. Usually stocks tend to return to VWAP or the EMAs (9/13/20) at some point in the day. I try to be patient and focus on my "trade management" once I entered the first starter. I try to keep my average price in the top half between the highest price and VWAP in case of a short.
In the worst case I suppose I get out with a small loss close to my average-price should I end up with an all day grinder.
I have to admit that it took me now more than a year of experience to have a good feeling about how a stock would trade within a day... Hope that helps. I will write about my approach once some time passed. Last week was my best week to date with a total of 26 trades and 24 winners. One loser was a mistrade I do not know what caused it and the other one was an AAPL trade that did not work out on Friday. Will post the recap tomorrow. Best, Markus
math_psycho
Thanks very much for taking the time to explain your trade! I am very impressed with your stats! This is a trading style that I would like to add to my repertoire, and really the most important aspect is just getting some more experience with it. Are you in any chat rooms or online forums where I can get some more exposure?
Thanks in advance for your time and help!
You are welcome.
But to have a look at the downside when things go south please have a look here as I really screwed up in TWLO yesterday.
I am not in any chatroom and trade just by myself. I do follow SMB Capital on Youtube however. Besides that I rely on my own judgment for the most time...
To be honest, I haven't found any legit Trading Room so far that is worth joining or at least somewhat affordable :-/
I know that Trade-Ideas has a free Room if that suits your trading style. Barrie Einarson is running it. Are you in any Chatrooms?
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Hey... I am just curious if you would mind sharing any stats for your trading style and in particular for trades like this? I recognize that there are quite a few successful traders that are able to average down, but I am definitely not one of them. I have tried it and these are my biggest losers by far!