SNAP 55 Puts
Came into the day with two stocks to look at. NVDA for a potential bounce higher, and SNAP for a move lower. I was not 100% convinced of the move lower in SNAP given the big rally from Friday afternoon. However, I did still think the better play was a move lower. I identified where the break might occur at 60, however there was also resistance at 58.5. Remember, look left. Prices opened and went straight to resistance before turning down. I had placed a limit order for 5 contracts at just about where the low of the day would be, so great job there. I did not place a big buy since I was unsure/afraid of being wrong on the trade. You MUST dive in. Trust yourself and your process. Trust your downside targets. I knew if we break down through $55.17 there was a good chance we were heading much lower to the 52 area. I sold my first 2 contracts 5 minutes after the open. Way too soon. read the price action and you would have determined the most likely outcome was we were headed lower, so be patient. We never got back and stayed above the initial bar down at $57.09. We were chopping around in the $57.09 --> $55.17 Range all morning. Remember, when we get into range bound trading, it will usually resolve itself to the way it came. Which in this case, is lower. Needed to be more patient here to see out the trade. Indeed once we broke through $55.17, we traded lower on each successive bar until we reached the target at $52.23 where you could have sold at 4x the purchase price.
Lesson -
Stick to the plan. BOTH for entries and exits.
Trust your read of the price action
No reason to sell unless prices break your levels. ( If short, break to the upside, If long, break to the downside)