Daily P/L: $20
Account Net Value: $422
Account Net ROI: 21%
Trade Rating: GOOD
Today was a choppy day in the markets after the finding of President Trump having the virus. So, I wanted to take a very quick scalping trade. Meaning I didn't want to risk much on any trade and take profits on my first signal.
Took a quick scalping trade, making a 5% return on my investment.
NVDA today was on a beautiful run. Broke above 530 and pushed 8 points up all the way to 538. However, 538 which is a major intra-day key level was rejected very hard, and NVDA began to consolidate around the 536 level. Since I missed the first run up, I didn't see any confirmation in taking a trade unless we broke and closed above this critical level of 538.
It then continues to push up and break and close above the 538 level. pushing up to 540. yes, I missed it. However, the stock floats and holds around this level, setting up and looking like it wants to continue to rally. This is when I keep watch to enter in a CALL Option trade,
CALLS play the upside of a stock.
NVDA sellers come in, however, price action and volume still look good on the upside. NVDA has also been riding above the 20ema line (blue trendline) nicely, no break below the ema line. This is when I enter my trade, looking to play the continuation and break above 540.
NVDA pushes and breaks above my level of 540 making new daily highs and that is exactly when I exit my trade. Why?
1) Choppy day in the market, no clear trend on SPY. Stays within the same range.
2) Nasdaq at the same time of my trade starts to aggressively dump.
3) And most importantly, I did not want to risk much or get caught in a reversal on a choppy day like this.
Et voila! I got out right before the dump.