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PatrickStar
I saw this choppy uptrend formation, when I started shorting it I had foolishly thought that It'll keep going down. I made several crucial mistakes:
1)i didn't take ATR into account. If I did I would have realized that it had already dropped a good amount, so it might want to chill out for a second before it continues it's trend.
2)I didn't look if it was setting lower highs, when in fact it was taking a tiny break from continued higher highs. I was trading against the trend for the most part
3)I didn't take into account that it was getting extra hype from EV/NIO.
4)It was OverVwap and didn't show signs of wanting to break through it, yet I took the trade.
5)volume for the day was up by 4 million EOD
Before I took this trade, I was aware that If it went against me, I needed to set tight loss ranges. I didn't have an automatic one set (potentially a problem?) but I did have a quick trigger finger. I took a "3 strikes you're Out" hit so I had to stop trading it. It wasn't a big hit but it was a big enough one where it limited my daily gains by quite a bit.
My lesson: you have to find confirmation that the dips could be setting lower highs, but take the trend into account, sympathy news, volume for the day was up by 4 million, as well as if it was over vwap or not.
Execution detail:
Comments
Bruceiplol
Nasdaq is rising and XPEV is in a robust uptrend, why would you consider it is a choppy uptrend
PatrickStar
@etores. Ty
@Bruceiplol
I literally typed out the reasons on how I tricked myself into thinking it was choppy. Prior to 11:15am (est), it was going up. After that it got choppy, but it was still on an uptrend. I hope that clears that up for you on how I led myself into thinking it was dying from my entry points.
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You should give it a look to #TheStrat on twitter, and come back and see why you had a lot more not in your favor