2 NVAX Trades April 8th

[Lenny 2]

Hi All,

Looking to learn and therefor I am hoping for some feedback.

Stock gapped up in the pre market

First trade, I thought to have spotted some weakness even though the stock gapped up. I could get nice entry on the 1 minute on breaking that MA, and therefore I want in.

What are your thoughts?

Second trade. I could get a nice entry on the 1 minute on what seemed to be a potential break of the VWAP. A bit later the pattern seemed weak and therefor I stopped out.

What are your thoughts on this entry?
What are your thoughts on me stopping out? perhaps I should have waited untill I have hitted my hard stop loss on 16,45?

 

[Skye 28]

Lenny, sorry nobody has answered you. Are the red lines daily levels? If so, you shorted the first trade right above a level which is risky. You also entered a little early I think, instead of waiting for it to close below the MA and then start dropping from there. The 2nd trade was the same, in before confirmation & right under a MA. Volume looked good though so I could see getting tricked, but I almost never enter right at the levels anymore, and never when there is another level very near in the direction I'm heading.

[mhileman 21]

First trade for a short should have been made around the 16.80-17 mark based on the second red candle starting below the moving averages and the volume being above the average volume.  You could have set your stop loss at the moving averages right above it or the high of that candle. 

The second trade shouldn't have happened either mainly due to the action being in between moving averages. It would have been best to wait on the stock to figure out which direction it wanted to go in which would have been indicated by a break above or below those moving averages as well higher than average volume.