Friday 12/20/2019
I had a well-being score of 5.5/10 this morning. Caught a cold from my daughter, but mentally OK.
I took 2 live trade this morning with BABA and X.
My watchlist: BABA, MU, X, NVDA, ROKU and KMX.
I am getting a bit bored trading BABA every morning so I was hoping to trade something else. But I did like how it was selling off into the premarket. The 5min chart looked bearish before the open. Instantly after the open there was a mild bearish signal in the prints and L2 (10k below the bid see image below). Plus, a bearish candle so I went short just 5 seconds after the open. My target was PDC with my stop at 211.60. The R/R was too big and I usually don’t do too well with large R/R at the open.
The chart when I went long. Note the bearish L2, prints and 5min chart.
After touching my stop and 2 minutes had passed I started losing faith and covered a few shares to lower my risk. Then I placed a limit order at 1R and waited. Soon after my order was filled. 2 minutes later I was all out at B/E.
My next trade was X. X gapped down in the PM and the 3rd 1min candle was large and bearish. I liked that the price respected the PM level of 12.10. The price went back up to VWAP and bounced lower and I went short. I thought if it could break the 12.10 level it may run. My target was the next daily level at 11.75 with VWAP and my stop. I knew again the R/R was too big.
I was able to take a couple of partial profits but it never ran. I exited the trade when it made a double bottom.
What did I do good today? Covered some shares to reduce risk and exited trade early.
What I am grateful from today? Trading something besides BABA.
What I should improve on: It may be time to remove BABA from my watch list. I think I have learned all I can from it. Yes, I am consistently earning about 0.5R every morning from it, but it will inhibit me from becoming a better trader. Unless it is heavily in play that morning or slim pickings on the watchlist, I will not have it on my watchlist.