2024/04/19 est - Expensive Good Lesson - Realised Scalps and Swing 1-Day SMCI, AMD

2024/04/19 EST Friday:

Day trade and Swing Trade Realised loss: -21,488 USD.

Duration: 1 day

Day scalp in direction of overall market trend: $Advanced Micro Devices (AMD.US)$. Profit.

Swing one day and 1 day trade in opposite direction of market trend: $Super Micro Computer (SMCI.US)$. Turned initial swing loss 9k+ into additional +12K as it was a massive wash down.

Again my main weakness is the inability to cut loss quickly after was caught despite knowing the price direction ahead has changed.

Two days ago, my read is to short SMCI was spot-on. I should follow my read of price/ sentiment/ manipulation. would have been a huge winner. SMCI plunged a staggering 23% after a significant 3.29% downturn yesterday.

I decided to long for a scalp play instead of longer swing short play. Was caught at wrong timing and failed to exit with profit. <<< This point to again a reminder just last week in one of my post, the decision making process matters much more than the money because when you have a solid thinking process and system in-placed, you not only will lessen the risk but also make more and more consistent.

Instead of following the system I was hoping for bigger profit and the emotional decision had override all good system. The effect was I fell prey to price manipulation by dragging the position too long in the hope for a change in direction.

Doubled down the size to break even faster was another big mistake.

Same mistakes committed twice. Exactly same price reaction at significant levels.

The massive drop today appears orchestrated by market makers taking advantage of the Iran-Israel conflict. This is because upcoming SMCI revenue reporting will be likely good, and they want to buy low .... manipulating prices. Analysts' optimistic reviews yesterday just before the plunge seem were published by timing the publication to coincide with the impending escalation of Israel-Iran conflict in time to entrap new entry of retail traders/investors at high prices before the drop.

The trap was planned long ago but the timing was time with big catalyst world event.

1. Dip buying, be it intraday scalp or for swing trade or long term, can be extremely dangerous if one fails to recognize the intraday market momentum has reversed significantly.

2. Most of my trades are key reversal trades because that is where the biggest profit and least risk is though it takes skill and experience to be able to do that as market makers will try to throw you off many times before reversing (this part is where I failed as it gave you false price actions carrot and stick). Fail to implement risk management when was wrong is extremely dangerous.

3. One should not even be in the stock market if one cannot implement risk management.