MCHP Trade on Feb 6, 2019 09:32 from MarcoG: Tradervue User Stock Trades.

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MarcoG

 

Price action RULES!!...

MCHP on earnings today was gapping up in premarket. Waited for the first green candle to make a new high. I think I have entered though too soon. The candle was formed but trading the opening hours can give surprise even if the price confirms support levels. Indeed in 24 seconds the stock dropped heavily. I have kept it open waiting for the pullback that occurred. Once there the price failed again the VWAP retest and dropped back down again really fast. I have decided to close the position with a huge -10.60$ loss. Trying to figure out a way to better handle this crazy nonsense price action, I ask myself if a hard stop loss would have been a solution.. I don't think so. At the retest get out whatever the result? Basically once at VWAP I had to close it? I would have destroyed myself if the price then would have been back up. So then I had to enter back with no hesitation, as I did today!! I have reentered any way at 89.140 and again adding to my position at 90.140
If basically I would have closed at VWAP my profit results as 4/5$.
I deeply believe that the answer is avoiding entries like the one I have got here. I had to enter at the first micro pullback at candle 2 on 1min chart or above 98.50 that was indeed never crossed. My anticipation costed me a lot. I'd better lose some entry rather then spot such a scenario. Demand and Supply area were still not formed thus entering in the middle of the way to the supplied target it's bullshit!!

As I was saying before after few minutes the price signed new highs giving us a beautiful bullish price action. I have then entered again and got a nice almost 2 dollars move for a +10.74$
For capital preservation I have then closed the position independently by what the stock was going to do. In case I would have got a loss back from this trade I would have felt sooo bad!!
I am happy for my action in taking choices but I have to start avoiding the first 5/10 minutes in those days where SPY gave a big impulse and now consolidating!!
I am now seeing better when I should add to my positions. Today I have done it really good. Waited for the second pull back and added 3 shares to the position setting stop loss just few cents above my average price. It worked perfectly.
In case I would have waited at the opening today I would have made an Home Run Trade!!!!
First thing I need to improve my entry at the opening!!
Second thing will be starting closing the position in maximum 5 orders. 15 executions seems to me way too much. Today 2 executions from the first trade + 5 the second + 5 the third.
Total of 12 out of the 15 I have done today. If I would have respected that my profit would have been higher and payed less in commissions! The mistake is taking out a quarter at the third take. At the third I have to take out a half to then have just last piece to close out!! So basically: Out one quarter of position, again out one quarter of position, Out Half and Out Trailed Stop Loss. From 10 it will give me: 2 / 2 / 3 / 3.
I won't have this problem when I will use the proper size ;)

BTW I was forgetting that this trade celebrates trade number 100 since I am using 5/10/20 shares per position accordingly with the stock ATR!!! I have trade up to the 27/11/2019 as a human shit but I changed completely approach then in late November!! Started the journey on the 28/11/2018, it took me more then 2 months to collect 100 trades :D
I HAVE BEHAVED!!
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Execution detail:

Date/time Symbol Side Price Position
2019-02-06 09:32:15 MCHP buy $89.240 long
2019-02-06 09:41:54 MCHP sell $88.170 0


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