hharleyMay 12, 23 11:44 AM
Oversize. on tilt. revenge trade. greedy overstayed. anticipation trade. short squeezed. unable to react quickly enough to stop out.
-$480 Loss
GSITShort Stock
I overstayed and try once more around the 3.0-3.3 level and could have gone out with a win if covered at vwap 2.85 instead of adding and anticipating it the fall under vwap. The stock tanked fast into vwap but all the sudden price action slowed down for a few minutes and quickly pop back to 3.00 and held for another 4 minutes, all the sudden within 40 seconds or so the stock went from 3.24 to 3.85 (+18.8%) breaking out of morning high of 3.30 where we saw resistance twice. BLEW UP.
Broker:TradeZero
| Date | Price | |
|---|---|---|
| Entry | 5/12/2023 | 3.01 |
| Exit | 5/12/2023 | 3.65 |
- Total Views93
- Position Size750
- Percentage-21.26%
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hharleyMay 12, 23 11:49 AM
max dollar risk should have been -$40, -12R. did not respect risk. 1 bad trade is all you need to kill many good trades.
hharleyMay 12, 23 11:51 AM
my max dollar risk is also 5% of my small account of $800 before the blow up happen. so loss -60% of account on this 1 trade. loss the full week of good progress.
hharleyMay 12, 23 11:57 AM
wanted the week to end of a high note. this eagerness to win is not a good mindset to protect capital nor risk management.
hharleyMay 13, 23 7:05 PM
what did I do right - account was small enough that it is recoverable loss.
hharleyMay 13, 23 7:08 PM
what did I do wrong - 1. Oversized. 2. Did not place hard stop on previous resistance level at $3.30 in advance. 3. underestimated how much an 18M float can squeeze that quick and that much with not much of a news. 4. Friday should always size down on shorts.
hharleyMay 13, 23 7:12 PM
what could I changed next time - 1. size accordingly. 2. place hard stops upon entry. 3. avoid random trades. only play setups that makes money. 4. must size down on friday if shorting or look for short squeeze longs above vwap on Fridays.
hharleyMay 13, 23 7:14 PM
which setup seem to work best for me - FUBO was recent earning winner and has worked best for me. Although UPST MVST did not work. so no particular patterns work so far. CVNA first red day seem to work with ease this week. (May 8-12, 2023)
hharleyMay 13, 23 7:29 PM
End of day commission was -$51. When losses triggered emotions, overtrades, revenge trades... Better to have a max trades rule per day with max dollar risk per day.
hharleyMay 13, 23 7:43 PM
when stock quickly drop to 2.85(vwap), was up nicely but did not take profit and added instead. thought it was adding to winner. got greedy and over stayed wanting to cover under vwap. Risk was at 3.06 but hesitated when eventually slowly touched it, gave it too much time before the squeeze happened. Then got frozen luckily in a way, the broker stopped me out as my account was a small account.
hharleyMay 13, 23 7:46 PM
After this trade and fees, my account is now back to $290 from initial funding of $450.
hharleyMay 13, 23 7:47 PM
Since my account is now under $600 in which I can short, I will be focusing on using $5 risk trades on the long side following Sykes' alerts as stock selection and will continue to study.
hharleyMay 13, 23 7:50 PM
The ultimate goal is to develop good trading habits and only trade when high odd, good rr opportunities are presented and trade CORRECTLY.
