This is the trade that I hate, I caught trying to fight the trade and I paid for it dearly. I lost a lot of buying power here.
I was sure that it was going to turn around. This was one of those trades that I just read all wrong and wasn’t ready for it. I don’t typically like taking this type of losses but it definitely hurt my account and my ability to make progress on this trading journey.
In hindsight, the trade was easy to take. I should have been looking for the 1st move to the downside and once that was overlook for a reason to get long as the lightning bolt pattern still holds here as well. The pattern still holds to be true. This type of trade when a stock is down huge has been a curse of mine knowing that it should continue to go down further. I took multiple stabs at the trade and each one cost me. In looking at the chart, I had no specific reason for the short as XPO kept making higher highs. XPO didn’t give me an opportunity to get short yet I continued to short it. The only opportunity that I had to get short was in the beginning with a definite risk-reward. At 9:45 that was the time to get short and I missed it. The move was extended and it rebounds perfectly as it should have. On the wrong side of this trade and not being able to identify this pattern cost me dearly. This is the trade that I may need to stay away from.
P&L – ($709)