I bought into $WKHS when I saw this press release (https://finance.yahoo.com/news/ups-partners-workhorse-build-electric-140343911.html) this morning. Basically, this PR talks about $WKHS building electric trucks for UPS. My first thought was “yeah this is the play today. Hopefully dip buy, but maybe morning spike play. Depends on how pre-market goes.” In retrospect, this was an okay thought process that had a horrible execution. I had seen a video lesson a while ago from Tim about this company. Actually, a few video lessons. I do not feel like going back and finding the exact video lesson, but he had a “buy the rumor, sell the news” play when they were presenting at a conference one time that I remember (https://www.youtube.com/watch?v=E2Whc-_ZXlM.) But he also had a video lesson about this UPS news a while ago. So, I started off this trade knowing about this deal, but thinking that this was somehow new old news? Which is the dumbest thing ever. That is my first misplay here.

 

My next misplay came in the form of the execution. I watched this stock pre-market when it was at about 3.40 and thought that it could be a good dip buy spot. I stuck to my “Don’t buy pre-market” rule and waited a few minutes for the open. When the bell rang, it dipped more, and then a little more. I pulled the trigger on the trade at 3.225. I got up about $20 and in retrospect that was my time to leave. Screw a single, I’ll take a walk at this point.

 

I held and it bounced around at 3.15 for a while, and volume really dried up. This was my next misplay, in my opinion. I should have been out at 3.15. I knew that was support and I told myself next time I saw this chart, that that means it is no bueno. It looks like a quarter pipe, to those who are familiar with skateboard. Big morning spike (this time it was premarket) followed by a dip and consolidation at the bottom of the dip for a while. I should have been out at 3.15, but the best support seemed to be at 3.00. That risk was too much for me to actually risk, I just felt wrong holding a loss for that much even if the r/r ratio was nice.

 

Another misplay was not panicking out of the trade when I noticed how shitty the volume had gotten. The volume really dried up. I noticed this around 3.15 and should have gotten out. For the second trade in a row, I forced a trade out of pure impulse. This is going to be a problem I will nullify going forward. I have had great discipline since last week. I had not made a trade since Thursday due to market conditions and lack of plays. Today shouldn’t have been any different. Massive mistake that cost me $81.

 

Major Key Alerts:

 

1. Don’t Overtrade.

2. Don’t Impulse Trade.

3. Quarterpipe Pattern is a bad sign.

4. Once volume dries up, GTFO idiot.