- $586 This was a day where I failed to take quick action, failed to listen to the L2 as I have been so successfully doing lately, spent too much time thinking about other peopleâs strategies instead of simply doing what I always do, and did not stay focused when watching for setups. It all conspired to take my money. Tried to get short MYGN, but missed fills on limits and it dropped too quickly for me to chase. Also SNDA and that was well worth chasing. I normally go in at market when I have a strong short list at open. Not doing this today cost me very dearly. 9:41 a.m.: Short BBBY @ 25.65 pull back from overbought, stop @ 26.15 (max loss stop). My plan was to hold it till dayâs end if not stopped out. It double topped near my stop and pulled back. I thought for sure it would downtrend the rest of the day, but it staged a strong rally and took me out for a $238 loss. Since this was a trade in which I was picking a top, I should have set a tight stop instead of a max loss stop. Strayed from my strategy, cost me $138 more than it should have. 10:30 a.m.: Short ORLY @ 35.17 overbought, pull back from double top, stop @ 35.30. It dropped initially, then bounced hard for a $80 loss. Price bounced on no volume whatsoever. No problem with this trade, other than the L2 action made me suspicious, so I couldâve exited near b/e at that point. 10:44 a.m.: Gave FAZ a try, oversold, SPY & GS overbought, in @ 19.38, out @ 19.73 for a $34 gain on 100 shares. Great setup, great trade. 11:17 a.m.: Short ORLY @ 35.85 overbought pull back from HOD, moved stop to b/e and stopped out near b/e. Original stop wouldâve kept me in a $250 profitable trade, and the original stop was actually a very reasonable one, not a max loss stop, so, my bad, for moving it too quickly. 11:42 a.m.: Long FAZ @ 19.33, oversold, SPY & GS overbought, exited @ 19.69 (.06 cents from end of the move) for a $108 gain on 300 shares. Great setup, great trade. 12:08 p.m.: Short BBBY @ 26.43, oversold, but having established a downtrend. Stop @ 26.83, just above HOD, hit for a $208 loss when the downtrend reversed. Iâve tried this strategy three times now (shorting oversold based on the appearance of weakness) and it hasnât ever worked, so Iâve removed it from further consideration. 12:52 p.m.: Short DRI @ 37.24, overbought pullback from HOD, stop @ 37.44. Had an overwhelming urge to take $100 profit @ 37.14 based on L2 action, but hesitated. Big mistake. Price went through my stop, but it did not trigger, then later did trigger for a $197 loss. Then I didnât get back in fast enough for a solid move in my favor. 1:42 p.m.: Watching GS approach oversold. It dips below 110.00 and Iâm ready to go long, and despite clicking a âBuyâ button twice today, I simply cannot do it. My mind keeps saying it will drop because itâs made a lower high, but SPY was also in my favor, and the 3-min bar provided excellent long signal. Superb trade, not taken. Ready to go long FAZ and my son interrupts me and starts asking about things that my trading brain simply canât fathom and by the time I tell him âshhhhhâ I miss my entry point. Great move, too! 2:11 p.m.: Short BBBY @ 26.74, overbought, failure to make a new high, SPY overbought. Stop @ 27.14 max loss. Covered @ 26.54 oversold for a $100 gain. By the way, there was no reason to risk a max loss on this trade! Failure to make a new high should go quickly in my favor, or Iâm out. Other than the stop, this trade was managed in my usual fashion and of course was successful because what Iâve been doing has been working! Intended to short BBBY again based on L2 action at the SMAs, then looked away for a few moments and missed the perfect entry of the day! 3:10 p.m.: Short HANS @ 36.36, looking weak near overbought, bumping its head at the SMAs and having now established a down trend. Stop @ 36.56, but actual price Iâd exit at is .46, because a breach of .41 previous resistance means the trend is likely not intact. Should have taken profit at oversold, but didnât, because I was contemplating holding overnight. Exited @ b/e because I decided I didnât want to hold overnight. The L2 action at oversold was a clear signal to take profits and I hesitated by thinking about changing my plan. So, Traders, today is a great picture of what happens when you think instead of trade your setups instinctively, when you change strategies that have been working, when you stop listening to the price action, and when you change a plan. Wow, all in one day, too! Tomorrow weâll see if I learned anything from today.
One more thing to add: This is why I keep a journal. I analyzed how my day would've turned out had I listened to L2 action and managed my trades like I normally do: +$630
This, ^^^ novice traders, is what is called "A Golden Nugget". You mentioned today that several times you missed "the perfect setup". It seems like you are beating yourself up about it -- why?
Boosh, I am wiping a tear from my eye. You are truly there for me in my time of need. Tomorrow should be a fantastic day. Thank you!
Mad, I am beating myself up because GS handed me a high probability long trade and my finger was on the trigger and I could not pull that trigger because I started thinking. Then I strayed from my focus and missed the strongest move of the day with BBBY, which I was rather focused on most of the day, so why I lost focus when the best setup was setting up, I do not know. Lack of lunch is my only explanation. So after a bite to eat, and a run in the park with the dog and the ball, I feel much better now.
Donna, Our combined experiences during trading today got me thinking of a song. Let me know what you think: "...Breaking the trades in the hot sun I fought the tape and the tape won (7 times) I left my BBBY and it feels so bad Guess my trade is done She is best setup I've had all day I fought the tape and the tape won (2 times) Robbin' myself with bad entries I fought the tape and the tape won (7 times) I left my BBBY and it feels so bad Guess my trade is done She is best setup I've had all day I fought the tape and the tape won (7 times)..." Admitedly, I don't have much else, but kind of a catchy tune, wouldn't you say?
Thank you, Daniel! That works well! Since the subscribers to this journal have come to expect more than simply technical analysis, I am pleased that you posted that, and I will add my own country ballad here, written back when I left money on the table with almost every trade: I put on my shorts, one leg at a time. Just like that Madoff who committed that crime. But managing my trades is like reaching the moon. I cover my shorts waaay too soon.
Another fascinating journal entry Thanks for including the details such as time, and even share size I'm learning alot from watching your trades