Today I made what I would consider one of, if not my best trades since I started trading intraday. I've been struggling to execute my trading plan for months and couldn't figure out why. I was comfortable losing the dollar amount I was risking but any time I got up in a trade and was profitable, my trading plan went out the window and I would take profit too soon. When trading in my paper account (fake trading) I have no issues at all. I switch to real money and I become a basket case.
A couple weeks ago I decided to size down to see if my position size might actually be the issue. This allows me to trade as though money isn't an issue while still trading real money and still having real risk involved. Sizing down created yet another issue, at least at first: because my position size and risk was so small, I was taking too many trades. I realized this last week. This week I feel like I really got into a good mindset, only initiated trades with quality setups, and stuck to my trading plans like glue, which beings me to today.
Today I wasn't sure what I was going to trade. Nothing looked very good from the bell except $BYND (Beyond Meat) and I've only traded it a couple times and got smoked each time. I decided I didn't care and brought it up on my main screen. It looked good and I was going to take a stab at it. It was showing strength so I marked out a couple levels: the most recent pivot high on the daily chart at $114.15 and the second most recent pivot high at $130 (also on the daily chart). My target price was $123, the price at the opening bell when the stock was in a bull flag on the daily chart and failed. If the price could push through $114.15 on increasing volume then pull in to test this level, I'll get long in front of it. The price did exactly that and as it came down to test $114.15 I had support of VWAP with the trade line (9-EMA) coming up for additional support and the 50 fibinocci retracement level right there on top of $114.15. When I saw this level holding I got long at $115.38 with my first profit target through the break of the current high of day ($116.88). We broke through $116.88 and I took 25% of my position off the table at $117.14. I didn't like how quickly $116.88 was tested but we did push through the previous high of day on the highest volume of the day - no need for immediate concern. Price action was struggling to move higher so I thought I should get some more off the table; second take profit at $119.37. We tried pushing higher but failed and price moved in yet again to test $116.88. This is where I wish I would have done something different.
When the price came back in to test $116.88 and held, I should have added back to my position and didn't. It was the perfect opportunity to take a position essentially risk free (if I was wrong I'd be giving up what I just made and break even on the trade). Anyhow, $116.88 held and eventually we put in another high of day but off a weak extension through the previous high. Because we didn't get a lengthy extension with high volume, I took another 10% of my position off the table, leaving me with 15% of my original position left trading. I still thought we had a chance to see $123 but it was lunch at this point. 9:00 AM - 11:00 AM PST volume dries up and trades can't be trusted. Eventually, my stop was broken and I sold out of my final piece of the position at $116.50 at 11:00 AM, just as we were coming out of lunch.