Traders Ask: Did I trade this correctly?

Hi Bella

If a stock fails a resistance level and you go short thinking it is a perfect Opening Drive Trade2Hold, but then 20 cents later there’s a buyer holding the bid, bid drops, then comes back, you cover, right?  Can you flip from Trade2Hold to range scalping? Although, the play ends up being a perfect Trade2Hold an hour later because it failed to retest resistance.  What I am asking is when do you consider flipping from Opening Drive Trade2hold  to just scalping the ranges the stock trades in? I would have made more money with the Trade2Hold scenario, but I still made money scalping the ranges, but possibly led to overtrading.

Your Thoughts Are Always Appreciated!
You are asking all the right questions!
I would be clearer in how you are thinking about this trade.  It is a fundamental trading error to start with with a definable trading exit and then switch this exit midtrade.  Before you enter the trade you must consider the Opening Drive slowing and covering.  So what is acceptable is to say I am gonna make an Opening Drive Play and if it slows, there is a rebid, then I will exit.  What is not acceptable is to say I am in a Trade2Hold Opening Drive Play and am holding until there is a Reason2Cover (a rebid, a slowing on the tape, is not a Reason2Cover).  And then for you to cover your Trade2Hold when you spot a rebid which is not a Reason2Cover.  This was not the trade.  This was not your plan.
This may seem like a small distinction but it can make all the difference.  You are either in a Scalp Opening Drive Play with all its specific exits or a Trade2Hold Opening Drive Play.  These are completely separate trades with different if/then statements.  Their risks are different.  Their win rates are distinct.  Their exits if you are correct are not the same.
The play here is an Opening Drive Play (you almost never want to start a Trade2Hold on the open because stocks do not trend on the open).  You hold until the stock slows.  You wait for consolidation.  And then after consolidation below the level, you make a Trade2Hold Resistance trade.
I hope that helps.  Keep working on your trading game!

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