Keeping Losses Tight

How does that song go..”time just keeps ticking, ticking, ticking…into the future”… Amazing that we are already into August, but excited to see the beginning of fall trading and earnings season as a full time trader now.  Let’s go!
Monday ended up a solid and tight day for me, one winner on AMZN and one loser on FL.

Let’s review FL first.   As I write this up, I am admittedly annoyed with myself on this, which is partly why I love recapping my trades.  One, I was anticipatory a little too early and didn’t have a more solid plan in place when I realized that I was wrong (other than the obvious stop out, which I took). I should have added into the top in the event of a potential move to the downside but I just took the loss. I blame it on the fact I was deep in concentration on AMZN and took my eye off the ball here.  AMZN is just not one I can “set and forget” so in future I need to ensure I have a stronger plan in place.  Because I had just a starter position on, it was a very small loss, but I am not concerned with the loss as I am with the poor trading on my end.

Anyway, moving on to AMZN.  This one ended up being a pretty solid winner, however I am working on not trading as much in the doldrums that has historically proven to just churn me up.  Regardless, the chart pattern was solid and I am happy with the execution.  I have circled the large candles I love to see that help define direction for me, this is what I like to play into, with my stop over the high if I am wrong.  I did take a bit of a risk with it being slightly away from vwap however the morning action gave me a bit of conviction to think it could shed quickly if it started.

A couple of random thoughts on AMZN…Emil said it well today in the webinar after hours, stocks such as AMZN, TSLA, NVDA, etc often have at least one trade in them nearly every day, the range is generally solid in all of them for at least a few bucks.  The key is patience and avoiding the potential churn that can happen around vwap with them if they are truly directionless.  Key to stay in more a scalp mode if that is the case….OR to just move on to something that is providing a better trade.  Revolutionary, right?!? I have found myself sitting with a solid profit in them…only to give it up when it retraced it back up or down.  One part of trading that I absolutely love is that you learn everyday.  Its just up to you to bring it to the table the next day and make use of the lessons.

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