Here’s another trade I just closed out as I’m unwinding for my August shutdown. I went long $BYND on a close above the upper SwingVWAP on July 16 at the yellow line. My stop was the low of that breakout candle at the red long-dashed line. Two days of sideways and then it took off. On July 23 (the date this chart was made), the breakout to new highs followed by a big collapse that went back below the open got me to cash out. Good trade, right?
On the next day, $BYND held there, and then, of course, today happened:
As I keep preaching, things like this ruined me in the past, and ruin newer traders. Yes, I missed a big chunk of the move. If I were blinded by greed, I’d be upset that I didn’t get all of the move. If I were driven by fear, I’d be afraid of missing out on more if it keeps running. I’d chase here, and probably get blown up. Going into August, I’d give back all I made on this trade and then some I imagine as I would press and chase and look for things that aren’t there as revenge for missing out on all of a good move.
There’s so much opportunity in the markets when things are moving. Taking parts out of moves in spots that make sense is the way to consistent profits over time. Manage your risk and take some off the table. Go ahead and leave some, and be content with that.