2016-12-06 Summary Daily P&L: -$247 (3 trades, 3 losers) Hit my max number of losing trades (3) today pretty quickly. It's good these types of rules are in place from a risk management perspective or else I'd probably continue to attempt to short into the afternoon and lose even more. These types of days when the market mean reverts are when I tend to lose, as I typically follow the trend. Trade 1 (Short @ 4770) - was a decent trade because had the market broke below the support line (4767) then the market would have continued to drop rapidly. Entered at the pull back with a tight stop. Trade 2 (Short @4775) - was a stupid trade.. initial plan to short again around 4779 but I reacted to small market fluctuations. Trade 3 (Short @4777) - another stupid trade.. because I missed the short at 4779 after a brief spike up I ended up chasing at 4777, thinking the sell off was coming. Things to (continue to) focus on: -More patience on the trade set up (wait longer until I take the 1st trade, for the range and chart patterns to develop) -Need to mentally visualize potential chart formations both to the upside and downside (anything can happen), and strategize my game plan -Protect profits (do not hesitate to exit and take profits at current levels when market is exhibiting signs of slowing down / utilize time stop) -Okay to miss entry and not make a single trade for the day -Always keep the overall trend in mind (will it trend or will it range?) -After every trade (win or lose), take some time to assess before entering the next trade
They con you into buying here, then drop the hammer on you. Not covering yet, my target is over 4800.