{"id":42586,"date":"2015-10-29T12:29:34","date_gmt":"2015-10-29T16:29:34","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=42586"},"modified":"2015-10-29T12:29:34","modified_gmt":"2015-10-29T16:29:34","slug":"execution-trumps-trading-ideas-every-time","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/execution-trumps-trading-ideas-every-time","title":{"rendered":"Execution Trumps Trading Ideas Every Time"},"content":{"rendered":"<p>The fourth stock discussed in today&#8217;s AM Meeting was NXPI. It was gapping lower on very negative guidance for next quarter. A common intra-day pattern with this type of news is an explosive move to the upside in the first few minutes followed by a downside reversal. I noted in the meeting that because the gap was so large the price action would probably be tricky and thus it wasn&#8217;t one of the top 3 stocks I was considering. Nevertheless a quick pop on the open to 79-80 presented a good short entry so it was worth mentioning.<\/p>\n<p><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/10\/nxpi-guide-down.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-42589\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/10\/nxpi-guide-down.png\" alt=\"nxpi guide down\" width=\"655\" height=\"21\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/10\/nxpi-guide-down.png 869w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/10\/nxpi-guide-down-300x9.png 300w\" sizes=\"auto, (max-width: 655px) 100vw, 655px\" \/><\/a><\/p>\n<p>Prior to the Open rather than placing a script to short NXPI in front of 80 I placed price alerts at 77.50, 78, 79 so it would catch my attention with a quick pop to my shorting area. It opened at 74.73 and by 9:40 it was at 79. Instead of waiting for it to get to my preferred &#8220;short zone&#8221; I jumped the gun starting to short between 78-79. By the time it had its blow off top above 80 I was in a position of weakness and did not add to the position. When it started to drift lower I covered more quickly than I would have if I had been more patient on the initial entry.<\/p>\n<p>Eventually NXPI trended below its opening price finding some support around 74. So my idea to short near 80 was spot on and turned out to be an excellent risk\/reward. But by jumping the gun I cost myself a significant amount of PnL in the play.<\/p>\n<p><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/10\/nxpi-failed-idea.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-42590\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/10\/nxpi-failed-idea.png\" alt=\"nxpi failed idea\" width=\"521\" height=\"338\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/10\/nxpi-failed-idea.png 651w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/10\/nxpi-failed-idea-300x194.png 300w\" sizes=\"auto, (max-width: 521px) 100vw, 521px\" \/><\/a><\/p>\n<p><a href=\"http:\/\/twitter.com\/sspencer_smb\"><img decoding=\"async\" src=\"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png\" alt=\"\" \/><\/a><\/p>\n<p>Steven Spencer is the co-founder of SMB Capital and SMB University which provides trading education in stocks, options, forex and futures. He has traded professionally for 19 years. His email address is: sspencer@smbcap.com.<\/p>\n<p>No relevant positions<\/p>\n<p><a href=\"https:\/\/smbclassroom.clickwebinar.com\/how-market-structure-should-dictate-our-trades\/register\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-42593\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/10\/tradingvaultwebinar.jpg\" alt=\"tradingvaultwebinar\" width=\"600\" height=\"250\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/10\/tradingvaultwebinar.jpg 600w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/10\/tradingvaultwebinar-300x125.jpg 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The fourth stock discussed in today&#8217;s AM Meeting was NXPI. It was gapping lower on very negative guidance for next quarter. A common intra-day pattern with this type of news is an explosive move to the upside in the first few minutes followed by a downside reversal. I noted in the meeting that because the gap was so large the &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/execution-trumps-trading-ideas-every-time\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":143,"featured_media":42590,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,8],"tags":[4760,4685],"class_list":["post-42586","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-comments-2","category-steven_spencer_steves_blogs","tag-trade-execution","tag-trading-lesson"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Execution Trumps Trading Ideas Every Time | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/execution-trumps-trading-ideas-every-time\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Execution Trumps Trading Ideas Every Time | SMB Training\" \/>\n<meta property=\"og:description\" content=\"The fourth stock discussed in today&#8217;s AM Meeting was NXPI. It was gapping lower on very negative guidance for next quarter. A common intra-day pattern with this type of news is an explosive move to the upside in the first few minutes followed by a downside reversal. I noted in the meeting that because the gap was so large the ... 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