TWLO Trade on Nov 7, 2018 10:14 from boldandnuts: Tradervue User Stock Trades.

All hell broke lose with $TWLO

TWLO gapped up on Earnings and was strong during premarket already. 

For Support I had 80 77 and 74 marked and for resistance 84.50 and eventually 89 the all time high.

When TWLO tested the 89 level and broke above I thought it might just make a new high just to pull back below. $TWLO traded rather slowly and looked not that strong at that time. 

When it hesitated with the 90 level and consolidated I gave it a shot. $TWLO tested and rejected 90.50 and I had 88.50s in mind for a first target. That didn't happen. Even though I was in the green occasionally I did not take a partial.

Add#1 for average of 90.30 on 50 shares

$TWLO also tested and rejected 91 or so it looked. I added and it respected the 90.50 support to make another run up.

Add#2 for an average of 90.79 on 75 shares

I suppose I was a little too careless with my add when I added into 92s as $TWLO ran up further. Or grinded I should say. $TWLO finally found and respected 92.50 to make a move back below my Break-Even. 

For some reason I did not take off half to reduce my position. I really was too careless and overconfident in my trading approach. Not have I ignored signs of strength and did not wait for good confirmed entries, but entered and added erratically. Bad Behaviour!!!

Add#3 for Double Top?

When TWLO retested 92.50 and seemed like it would make a Double Top I added on the move lower for an average of 91.11 on 100 shares ready to take off half at break even.

$TWLO pulled back into 91.50 and made another run for highs. 

Add#4 for an average of 91.54 on 125 shares

It was about the time I got a little worried on my trade. $TWLO traded at new all time highs and there were no levels above I could refer to. It clearly was a strong mover and all dips and lowered bids were bought. 

I became a little more cautious on where to add and when 93 was tested I made another attempt that was bought up and lifted moments after my entry. 

Add#5 at 94 for 150shares to 91.92 average.

My overall position was still ok as I only took small pieces. However it got to me. I just had the feeling a pullback and small correction to get out was immenent.

Then it happened: at 94.50 instead of adding another partial on weakness as my offer was not filled I accidentally CLOSED half position AT THE HIGH to take a big loss. 

Erratically I added right back 50 shares for an average of 92.99 on 125 shares. REally bad behaviour.

$TWLO consolidated betwwen 95 and 94 for a while and I watched it with VWAP in mind for some sort of correction. But the market overall was really strong and at that time it was just a matter of getting out of the trade. 

Had I just seen the trade I would not have touched it as I did not like how (strong) it traded and would not have taken any position. But I was already in and now it was really stressful to manage. Even though the size was not too big, I was mentally and emotionally too involved. 

Add#6 for an average of 93.44 on 150 shares

My final add. I hesitated from taking another piece. Even when TWLO rejected 97 and traded between that and 94 for the remainder of the day. I was really "scared" it would break out above 97 and make another run. 

I had no confidence in further manage the trade. In hindsight I could have gotten out of it easily with by doubling the position at 97 for an average of just above 95. Or scale out with reduced losses into 96 and below to re-add into highs. 

But there was NO level above that I could rely on besides a Trendline that fell in a bit further above. TWLO never traded there, but there was no telling so as it grinded along slowly.  

Scaling out with losses

94 was support and when $TWLO finally looked like to pull back and below 95 I said to myself to just scale out and take the loss.

I did ok here, but should have taken off ALL of it on the break back above 95. Or at least add back to the 32 remaining stocks. 

Into the close TWLO tested 94 again where I took some final pieces off into it. 

Conclusion

Badly traded and managed trade. I am glad I got out and yes, frustrated about such a big loss. But it helps to realise the flaw in my approach and to be on my toes at all times. Get to know myself better and stay focused on GOOD ENTRIES. Stay calm, Markus. Even 300 shares would be an easy position to manage. But you need practice to get there. 

It is a setback but I have to make myself aware of the fact that I am still positive on the month, if not by much, but positive and that all other trades worked out good when I have levels that can act as pivots and anchor-points to base trades on. 

Lesson learned? Don't  short into new all time highs after good earnings when there are no further levels.