thought it could do SMMT type of move so always ready to downsize if it kept going into 9:28am. got short premarket, great entry and it's got $11 peak out at the open so I added to my position. Everything looks great and I was up $4k quickly but it started crawling back up and it went across VWAP, break HOD and even premarket high on "relative volume" and followed by 1-min consolidation candle afterwards so I got really scared and I ended up covered all. I've given lots of respect to "relative volume" concept recently and it saved my ass countless times but this time it makes me miss this huge opportunity. Here is the thing, "relative volume" may not guarantee you making money but it certainly is a protective armor and keeps you safe and out of big trouble like MR's loss on DRWI, AT09's loss on NVFY, etc. You can't trade on single concept alone!!! You really have to take into other factors/elements into consideration!!
1) huge pullback telling me any subsequent push/pops could be "stuff".
2)Yes, relative volume is greater than before BUT it fails to hold!!!!!
3) you must give yourself some wiggle room!!! If you don't allow yourself room you are not going to make it! In this case, premarket high is $11.50, you have to set your risk above it eg: $12!!!
4) going back to the basic: "ENTRY"!!! that's all it's about!! When you have great entry it allows you stay objective and keeps emotions out of decision making. I chased down anticipating VWAP stuff but I failed to take into one important element in this typical case-$10 significant mark that acted as premarket support!!! I overlooked the power of $10 mark!!! when it holds, it can travel farther than you expected especially when a stock is top percentage gainer, low float, and early in the morning! Putting all of these elements into perspectives I shouldn't short below VWAP no matter what!!
5)same exact chart as KOOL yesterday!!!! Had I studied it today maybe I would avoid such silly mistake!!!!!!!
6) Same mistake I made on SMMT on 10/4. I flipped long not b/c the setup told me so but b/c of frustration and anticipating other shorts would freak out and started covering. I ended up ate another $1500 loss.
Going forward tomorrow!! always always always review excel and blog trade logs!!!!! it's not an option, it's MUST!!!!!!!!!!
that's how BTUUQ ended... was focusing SAEX and the fear got my eyes off it.
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