Today I wanted to make a trade re-cap for $TLRY that I traded this morning. This was a rather nasty and quick loss on my end due to not being disciplined. I feel being fully upfront and transparent with losing trades is a big part of the learning curve for success in the long run. 

 

I broke several of my rules right off the bat as listed below for this trade:

1.) No major O/H resistance on the daily chart 

2.) No major O/H resistance on the intra-day chart early morning

3.) Chased weakness right out the gate market open when shorting

4.) Didn't have a clear exit plan once I entered the trade

5.) Was very emotional due to not having a concise plan

 

As shown above, there were multiple reasons why I should not have been shorting this stock when I did. One of the biggest mistakes by far was chasing the weakness out the gate. That's like chasing strength on a morning spiker right at the open if longing; it's a very newbie and dangerous habit that I still fall into from time to time. Rarely will I ever place a trade right at the open unless there's solid confirmation such as major overhead resistance near by. 

As I am typing this $TLRY is still holding partially up on the day and is still somewhat intact. Very tricky stock partially due to the fact that it is overcrowded trading nearly 50m shares as of 3pm this afternoon. Overcrowded stocks can be easily choppy and highly manipulated leading to some rather irregular price action. I did scalp this in the afternoon as it started fading but it was basically nothing. Too scary right now. If shorting a play like this it's best to be extra patient and really wait for the backside of the move. It's not easy but much better than eating a huge loss due to impatience. 

I cannot stress enough how important basic support and resistance levels are both on the daily and intraday charts. They generally guide the main price action. I simply was zeroed in on the overall extension of $TLRY and completely neglected the fact that there wasn't any solid confirmation of a short early morning. Something to review over this weekend and hopefully avoid in the future.