Rate the trade ;) ZM March 19th

[Lenny 2]

Hi All,

First week papertrading.

Looking forward to hear your thoughts, how would you approach this situation, and how I need to change and add to my thinking.

ZM, looked in my judgement, based on the chart, strong today. There also seemed to be no resistance levels above. 

I put the stop 50 cent below and wanted to take profit 1 USD up. 

My first trade got stopped out
My second trade got stopped out
My third trade got stopped out
My fourth trade was a succes
My fifth and sixtth trade I got stopped out again

1. Was my stop loss too tight?
2. What would be other considerations before entering this position, or what factors could I consider to make a more accurate entry?
3. Can it ever be okay to keep on trying to catch the wave up if you get stopped out?

 

 

 

Many thanks,

 

L.

[Justin 262]

Hey Lenny!

First, that's great that you saw and analyzed that ZM was looking strong in the pre-market and overall today.

The first thing I notice is that your first entry is a bit chasing. We're already several strong moves away from the vwap. If you think there is still going to be some strength, I would try and wait to see if there is any pullback before entering.

The second thing I notice is that the pre-market high at around $124.50 (the bottom dotted red line on your 1min chart) was acting as pretty strong support. So better entries for your first, second and third trades would be getting in closer to that support line and thus would have your stop loss below the pre-market high.

Good job on your 4th trade though. Definitely looks like you had a wider stop loss!

For the 5th and 6th I'd definitely be hesitant to go long after that engulfing red candle (the one right after you got out of your 4th trade).

I think the main takeaway for me would be focusing on patience and waiting for pullbacks.