Monday, October 5th, 2015

Today's trade with notes:

Lessons and what needs improvement:

- Have a set amount to risk on a trade and trade accordingly to that max loss risk.
- Shorting pops instead of dips. I started shorting the bottom of the candle instead of the top of the candle giving me a bad start.
- When shorting and covering a trade right at the open and VWAP reclaims with massive volume absorbing, take a deep breath and watch closely what happens. Don't dive yourself immediately into a new trade. Think it through. Let it put resistance and see if that resistance gets tested and taken out. See if those pre market highs get taken out. Opening range breakouts attract new buyers and entice existing buyers to add to their long positions making news highs very possible.
- Wait for a lower high and a set risk (for example risk being the day's high) to short into.
- 10:00-11:00 give clues. To add or not to add. Ask yourself: at what percentile of the day is the stock trading at? If its trading at the top 25-50% be very careful. If its trading at bottom 25-50% it is likely it heads lower and might be an "all day fader".
- Stocks trending along the 9ema give shorts no edge whatsoever. Best to wait for a lower high or the "blow off candle". In this example, it put a lower high, reclaimed and blew off the day's high hitting $6.30's. At 11 am it put the infamous lower high that needed to be attacked. Unfortunately, I had run out of bullets by then. Always save some bullets for the backside of the move (backside of the move= $$$ and stress free trade)
- Last but not least: Always live to fight for another day. Trading is a marathon and not a sprint. I risked to blow up today. Take what the market gives you and dont be greedy.

As always constructive criticism is much appreciated. I hope this helps you as much as it helps me. Thank you and enjoy.