Today was a tricky for me. The market was still falling and the volatility was still insane and although I saw some pretty good setups, I was hesitant to trade most of them. I'm starting to realize I'm better with lower volatility tickers and need much more practice trading in highly volatile situations. I wish I could have participated in the down move the market was making more but I'm just not there yet. I feel like it's better to recognize that and ease my way into it that it is to hit it hard and blow up my account.
I did take a trade on $VIR and feel pretty good about it. It was just as volatile as the rest of the market. I was watching it throughout lunch form a pendant over VWAP. On one hand, I loved that it was holding VWAP and forming a pendant and I thought it if could break from the pendant it had a shot at making it back up to the high of day at $70. On the other hand this thing was making $5 moves like it was nothing, so getting into it and placing my stop in the correct spot would be tricky. I decided rather than getting in before the break and not being clear where I should put my stop (because of the volatility) I'd wait for the break and then jump on it with my stop at $52.50 to start. At first I was using a limit/stop order to enter the position, as I normally do, but realized I missed my fill at $50 and it wasn't coming back to pick me up. I sized down and switched to a market/stop order and of course got a pretty nasty fill at $56.47. When price broke through the smaller pivot inside the pendant I took my first piece off and closed 50% of my position. When price broke through the second lowest point of the pivot I closed my position to end the day, week, and month (I have an appointment tomorrow and can't trade).
Overall I'm happy with my trade but I do feel like I should have scaled out at my normal intervals (25% / 50% / 25%). Had I done that I would have hit my target at the high of day and this would have been a massive trade. My reasoning at the time for taking the position out at 50% / 50% was because I'd sized down to minimize my risk and by closing this way was just another form of risk mitigation. I suppose what I could have done differently was to take my first piece off at 25% then move my stop up to my entry which I usually don't do until my second take profit. I think that will be my rule moving forward.