Tough tape today again. As you can see I just can't break positive after my initial drop in the morning. Using smaller sizes and tighter setups, I was able to cut out quick in my losers and get some decent winners. In the end though, I lost a little discipline and just got chopped up in FCX again. Minus FCX, I think I traded decently, enough to breakeven for the day. Right now, I'm stomaching a horrible feeling. This isn't me. 2 losing days in a row unnecessarily... like I said yesterday, the difference with losing now vs. a few months ago is that I know what's going wrong. I don't feel hopeless anymore. However with that said I need to quickly figure out solutions on getting better. Am I trading the right stocks? Am I trading off levels that I deem most important? Am I watching the tape for strength and weakness? It takes a high level of focus to be in the best trades. Am I putting myself in the best positions for success?
On the Open, I immediately searched for a held bid. I thought I did wonderful getting in1600 shares. With a tight stop (if the .73s drop) I would be out at .71. On the upside, I would've had a lot of room to go. After I was stopped out however (minimal loss) I proceeded to keep trying with large size. Problem here was that the bid wasn't holding and now the offer was being tested. Here was a good opportunity to short. With its weak opening drive, I should've found some weakness .Trading held below one of my pre-market levels eventually at 54.30s. That was my short opportunity. I will take losses throughout my trading career. But with each loss, I need to gain more information about the stock. Stay fluid, focused, and flexible. There will always be another opportunity to make money in an In-Play Stock.
JNJ was a continuation gap and rallied right at the Open. I noticed the little bit of consolidation underneath 64 so I waited for that pullback. I was able to get .03s with a target up near .60. I ultimately saw the tape getting slow at .54 and sold 3/4 of it. All in all, a really good trade. Wouldn't mind taking 3-4 a day. Risk was only $60 for almost $400 of realized profit.
JNPR had a weak Open and even broke some important Daily support levels. It quickly bounced back though. I was thinking about the .50s as an area that was accumulating but didn't take any action. I did take a small feeler position to test it but raised my stop. Having a position from the .50s, my risk would've been about 10 cents to get almost a buck. That's a good trade. That was an idea I should've been in. The biggest lesson I've learned today is that I'm beginning to care too much about whether I'm right/wrong. Trade the tape/charts/levels, etc. Don't get involved with the chop in between. Your risk/reward just won't be the same.
UTX was a corny trade with horrible risk reward. I took it for horrible reasons. Does it offer at least 3 units of reward per 1 unit of risk? No. Stay away! Notice the accumulation on its pullback to 85.50s though. That's an area I would want to try with a nickel of risk. Initial target near high of day. THAT'S the risk/reward trade I want.
VMW! What a mover! Almost upset I didn't get into the action.This also had a weak opening but its quick bounce back near the highs was a sign that I should be looking for the long side. In addition, this was a kicker candle. Once it was holding 94.50s, I should've taken some. In fact, I did make that trade although I didn't do a good job getting back in around 96. There was a firm held bid but accumulation pattern was very clear. Smaller size, larger stops. The risk/reward on this was still very good.
Tomorrow I want to see myself exercise discipline by following my criteria for all trades. Ask myself:
- Is this a highly reliable trade?
- Is this a good risk/reward opportunity?
- Are there clear buyers/sellers?
- Do I have market support? Is this the right trading environment?
- How strong is this level that I'm about to act on?
I think I'm in that area of my learning curve where most people quit, that area where you start learning a lot in a short amount of time but then get a few kicks to the stomach. I'm not afraid of trying and trying harder because I firmly believe that it's my ability to sustain energy and work hard that will get me through this learning. Am I a little ticked? Yes. Am I stressing over it? No. I'm 25. I have time, and the more time I give myself in learning this craft the higher my odds of success will be. 6 more days left. I'm not going to force anything here, just want to trade the rest of the month as well as I can.
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A/H Earnings - Here's my initial list to scan over in the morning: AAPL ALGN DTLK ETFC FFIV GDI HON PBCT PLXS QCOM SCSS SLM TCO TSCO YUM
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A/H Earnings - Here's my initial list to scan over in the morning: AAPL ALGN DTLK ETFC FFIV GDI HON PBCT PLXS QCOM SCSS SLM TCO TSCO YUM
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