DAILY
5-MIN
1-MIN
WHAT WAS THE PLAY:- DOWN-TREND CONTINUATION
- Price breaks major support on Daily
- Market overall was weak and SPY broke down from wedge consolidation on daily creating a weak overall market
- I knew I shouldn't be chasing the initial down move (good)
- I waited for price to retrace to a level and show weakness (good)
- price battled/TIGHTLY consolidated around vwap, wicks above the consolidation showing seller.
- I missed the short on the initial break down of the consolidation but got in on the small retracement on of the break.
- Price BREAKS uptrend; BREAKS vwap
- The Risk perimeter was CLEAR at less than 20 cents and REWARD WAS PLANTY at around $1.
WHAT I DID RIGHT:
- I know exactly how much I'm committed to lose. Most at 20 cents. / $60 With that I calculated how many shares I'd trade to stay in with my risk perimeter. 300 shares
- The risk vs reward distance was 1 to 5.
- I scaled out as planned to lessen risk
- I let at least the last 1/3 run to my target which is the longer term level and also via ATR of last 5 days of $2.
- I let the last lot run and covered near my target.
- I didn't let the market drive the trade, I let the STOCK, AEM, dictate where it wants to go.
WHAT NEEDS IMPROVEMENT:
- I should have risked more $100 or 500 shares. since it a morning more which has more conviction
- I was too cautious by getting out too soon. I mean the first exit didn't indicate that it's going to reverse.
- The first scale out was completely out of "fear of loss" which should be avoided at all costs. It limits profits!!! BE BOLD, STAY WITH THE PLAY. I mean if I had scaled out 200 shares at the second out, I'd be up 42 cents x 2 and leaving the last lot to stop out at the original target would have netted me a profit if the last lot didn't work out. So that would have been the right play.
- The final exit didn't show that it's reversing either. THERE WAS NO CLIMAX OF VOLUME/FLUSH. FLUSH CAME TO 64.80! NO BOTTOM WICKS WITH HUGE VOLUME MEANS NO COVERING
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