Entry price – 245.93

SL – Mental stop around 248 just above 200sma

Risk – 2 bucks approx

Time of entry – 14:56 BST

Catalyst / setup – Gapped down below the 200 sma on earnings and setup a WSS around the 200 sma.

The revenue miss ends a run of clean beats and happened against a valuation (~46x forward P/E pre-print) that assumed continued flawless execution — that vulnerability is now visible in real numbers, not just in theory.

Thesis looking to enter around the 200 sma short for a WSS setup

Result – As you can see from the 5min chart above, I entered on hope, there was nothing in the 5 min chart action for me to enter the market with a short trade, I didnt let it set up it was just a hope trade.

As I didnt have a hard stop only a mental one I ended up closing out at 249.86 from approx a 250% loss.

Takeways –

• I entered on hope there was no short entry on the 5min chart, the stock closed at highs of the day approx +7%, when I entered the stock was above a rising 10 sma with MACD on the 5 min chart, not a signal to short.
• I was exhausted mentally & physically the only reason I can think of for not waiting for the setup to trigger and not sizing my position correctly so I can only lose max 100%, instead I lost 250%.
• The 200sma on the daily is still in a uptrend and the stock hugged the upper BB on the 5min chart sign of a strong stock making a move.
• No re-entry after the stop-out, despite wanting one: “even though I wanted the trade to work short I never re-entered even though I wanted to, I recognised the strong trend up and didn’t make the same mistake again, the short trade was not there.”