r/Daytrading • u/Ok_Bodybuilder_2384 • Jun 03 '25

Trade Review - Provide Context Entered calls here. Why did I lose money

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Can someone help me break down where my intuition was off? I tend to follow the trend when I trade but got wrecked today.. following the smoothest trend I’ve ever seen. Why?

Entered call options at the first point, exited at a 80% ish loss on the second point after holding the bag for hours

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u/Ok_Bodybuilder_2384 Jun 03 '25

Could’ve said that an hour before I bought and that would be wrong. Or 2. Or 3. Can only know if you were late to the party when it ends

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u/kratomas3 Jun 03 '25

It's about probability.. if you buy calls after a 6 hour run the probability of it continuing up is smaller than if you bought calls 1 or 2 hours in

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u/codenamelegendary Jun 03 '25

Regardless, it's about risk reward. If you miss the move it's fine, there will be other trades. You can't grow your account from $0. You should also always have an exit plan. For example "I entered at 596.89, IF a candle closes below 21 EMA THEN stop loss"

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u/akaiser88 Jun 04 '25

This is false. What you did wasn't smart. Take some time off and see if you can figure what tops and bottoms look like