Intraday Trades for the week: -$1280.
Swing Trades for the week: +$520.
This week involved a slight change in approach/methodology for intraday trading. As mentioned last week the goal was to focus on higher conviction setups. Now I really struggled with this at the start of the week because trading a higher conviction setup means it is harder to be proven wrong... But I seemed to have got the hang of it, then I had a lapse of discipline relating to something else. Despite this I like trading with an increased level of conviction, because it means you are more comfortable buying near/at lows and selling near/at highs and as a result generally end up with better averages. Sometimes this better average means that even if you're proven wrong the trade still ends up profitable. So that's a continued goal for this week.
Very clearly main focus for the coming week is still to keep losses on individual stocks below/to $300. However, when I look back at some of the bigger losses recently they have all been shorting parabolic, buying washout type trades and so I will dedicate a post to refining methodology for this type of setup (with focus on risk and sizing). I already have a standardised approach, but I think keeping it written out and on hand will help with the discipline aspect of it. Reviewing my stock fading overextension methodology should also help with thinking about the adjustments I've been making to my fx system.
To Sum Up:
(1) Take higher conviction trades.
(2) Keep losses on individual stocks to less than $300.
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