- Did not have adequate plan for taking profits
- Panic sold, with no technical signal to sell
- Did not game plan for extraordinary circumstances
Overview: Missed out on massive upside move. While i did capitalize well, & protect my green status, as well as have my biggest scalp trade to date, there was considerable more upside. I should not dwell too much on this, its a result of my trading one contract and an indication that its time to start responsibly sizing up, meaning on instruments with cheaper ITM contracts I need to begin experimenting with trading multiple contracts and practice scaling out. These are good problems to be having and I must remain steadfast in my discipline to learn from them.
–Trade 1 Mistakes: Did not adhere to your Exit Plan. No Technical sign to sell; Panic Sold. Did not plan for extraordinary circumstances. There was no sign to sell, not even on one minute. You protected profits yes but at the cost of considerable upside. This may be a problem you can’t meaningfully address until you begin trading with multiple contracts. This was a problem of scaling out. You took profits at a reasonable level for the one contract you were in, and you captured a healthy move. You could not have predicted what was going to happen next and your execution—placing a limit order near the next level of significant supply—was sound. Especially considering the divergence this stock was having with QQQ, it was unknowable if the 262 supply level would have completely absorbed the demand & sent the price back down, pushed through completely, as it was.
You exited without following your plan. Your plan was to wait for two candle closes below most recently surpassed level. You did not adhere to this plan. What’s been working for you is placing limit orders at imminent key levels and letting bursts of demand push into them. Whatever the 1 minute ATR is that should be THE MINIMUM amount you’re looking to & planning to capture. Any less than that is not giving the stock room to move. You did not plan adequately for SQ, you did not anticipate that if could move as much as it did. It surged in pre-market after you had completed your game-plan, negating the entry signals you’d initially outlined, the criteria you had were far too restrictive.
Third Mistake, Could have left my initial order in, would have likely got better fill. Cancelled it out of fear I would get some insane IV Surge fill & then be behind the game. While this may likely have been what would have happened, there was no indication from the chart that the stock was going to go down. “If the reason you’re buying the stock hasn’t changed don’t get out”.