Added: Mystique Bourgault - Date: 26.10.2021 09:34 - Views: 22657 - Clicks: 4426
The Snapchat IPO was one of the most anticipated public offerings in a long time. The first half of the day provided some long opportunities while the second half provided some great short opportunities. We took advantage of the short opportunities for a few reasons that will be explained later in the article. This tweet and others indicated that the sentiment surrounding the IPO may start shifting. At the very least, traders may start becoming more cautious.
Trade entry was majorly based on the same factors that led me into trade on snapchat into the TGT short yesterday as well. As you can see on both chartsboth stocks were trending and the dips were getting soaked until they finally ran into a ton of selling as shown by the volume bar. The tide was shifting from buy all dips to "ut oh, maybe I should have sold that last push? In the case of a failed breakout and failed retest, you can initiate a short with a risk at the high-of-day. Around 2PM the stock failed to set a higher high and the bullish trendline was broken. If you are looking for a short entry, wait for the trend to break.
Although the initial short entry was very close to the high-of-day, this was not a case of shorting just for the sake of shorting. Momentum had slowed around 2PM, giving the opportunity to open a started position with a risk based off of the high-of-day price. This allows you to choose a proper position size and helps you avoid surprise losses. This means it was easy to get in and out of positions quickly.
If you find yourself chasing stocks or getting bad entries due to a wide spread, start focusing more on liquidity. No one had taken profits on the intraday move yet - just steady grind through the day. As we come into the PM hours, we will often have a decent size pull back. Sometimes the stock will continue on to new highs BUT it takes a break filters out any sellers on the fence before carrying on trend. This trade was simply anticipating that move - had I been wrong the. Will they want to take the risk of an overnight hold or will they try to exit their positions?
There is always a lot of excitement surrounding IPOs. As a private company goes public, it can be difficult to as a proper valuation. Accordingly, many traders and investors can get carried away. All it takes is a couple of news pieces of tweets to change the sentiment. The market doesn't always have to be rationale but it's important to focus on how other traders may be thinking. I still get intimidated by these big momentum plays, and now I see, it's because I'm not finding and waiting for a clear and well planned edge. Thank you for the breakdown, and congrats on a great trade. Yes but just as mentioned it wasn't wildly circulated - saw it start to get picked up after that tweet and make its rounds again.
What was your reason for not getting short there but waited until 2pm? There's nothing wrong with starting in a bit before if you are familiar with trading these trade on snapchat had you done that on Friday obviously you'd go for a ride first. For me, I prefer to have a small position on let's say I'd go k short max size hypothetically -- many times I'll put on shares just to be in and FOCUSED - zoned in on the trade - it helps me trade better.
Submit Comment. Facebook Twitter. Failed Follow Through Momentum Trade entry was majorly based on the same factors that led me into sizing into the TGT short yesterday as well. You can see a similar move on the TGT chart from yesterday. If you are looking for a short entry, wait for the trend to break Set Risk Although the initial short entry was very close to the high-of-day, this trade on snapchat not a case of shorting just for the sake of shorting.
Thank you for the breakdown, and congrats on a great trade Reply. Pivot was out everywhere before IPO opened. InvestorsLive on March 3, at am. TripleV on March 4, at am. TripleV was here learning. Thank you, Nate!
Honestly I think it's the tweet. Nathan Michaud on March 5, at am. Thank you. I still have a lot to learn! Nils Her on March 5, at am. Thanks a lot! SeekingGamma on April 15, at pm. Wow, great explanantion!Trade on snapchat
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A Day Trader's Approach to the Snapchat ($SNAP) IPO and Key Takeaways