Mar 09

Learning how to daytrade lesson 1: $TSLA short


Mm09-03-16arkets on march 9 , 2016:

Trade 1 $TSLA:
Short entry at 206.80 and stopped out at 209.01. Thought double top so just short it. That was just a plain stupid entry. Stock took off moments after executing the sell short order. If I had a better look at the chart I would have noticed that the stock was trending in channel. I should not have been short biased. Better waited for the proper setup . A break of the low of the channel for a short or the breakout of the upper side of the channel and maybe a break of the former top for a long. In general this was not a weak chart. From yesterday it bounced of a triple bottom. Topped out on yesterdays top, retraced a bit and looked pretty strong. Instead made an early short and failed to execute the proper stop just above the HOD. Result of my stubborness and stupidity a loss of 250$….
Lesson learned:
Begin to look at the chart unbiased. Find the support/ resistance, channels etc. Then make a decision what to do. Looking for a quick scalp? Short the top of the channel not the bottom of buy the bottom. Place tight stops!