A side note: As of time of writing this (prior to US open on 31/3/16). I reversed my NZDUSD position to a net long on the 0.6900 breakout and retest. The speed of the breakout proves that it is a true breakout. While I don't have any fundamental belief in the breakout - that doesn't really matter. It feels like a chase here with gold starting to retrace Yellen's, but the technical setup is picture perfect, and of course technicals are more reliable in the longer term. Stop is on a daily close below 0.66 or 0.65 roughly, targeting mid 70s as first target, then leave the other half on as a position to be held until reversal signal given (similar to how I closed this short).
Day-Trading: +$701. Gains over a number of stocks added up today. Unfortunately missed an amazing NUGT short after the fed where it pulled in about $3. Paused exactly where I expected, but missed and it went straight down.
As a side note, I need to do some work on when to chase a move versus waiting for a wee pop (and hence better risk-reward etc etc). I'm okay with missing it though because sitting on hands and having patience through a fed move is a good skill to have. It seems to be the case that I'm chasing when I shouldn't be (e.g. NFLX) and not chasing when I should be.
Two big mistakes today:
(1) I didn't take a stop on PBYI. Was such an obvious stop, but I was overthinking that I might get faked out etc. Very poor. This is exactly the behaviour I have been trying to stop. Was about about $300 at that point on PBYI and drew it down to neutral. It eventually stopped where I would have re-established.
(2) Chased too much NFLX on the opening drive. Bit too excited, and too focused on the big picture instead of micro-ing the entry and hence risk-reward. Ended up turning this into an amazing trade (and one of the best of the day) by getting a perfect add on the clean breakout.
Swing Trades: -$111. Always knew it was going to be a tough day with SUNE position, which is oversized, and in the opposite direction to my intended strategy. Spent a bit of time contemplating what to do about that slip-up. Decided the best course of action was to sell some calls to improve the average if I end up getting exercised.
Entered a bunch of new short calls today based on the strategy of writing calls in trash stocks. Todays actions have me covered until mid April, where I can start looking to write some more calls. Am going to bid to cover 3 of the AVXL calls (not worried if I get a fill or not). Just think the position is slightly oversized given the proximity to exercise price. Yes - I have a strong fundamental conviction that this stock eventually gets delisted (PTCT etc), but I would like to be in the position to write more calls at $7.50 if I get exercised on these.
Big mistake today was entering the long NFLX calls on the opening drive up. NFLX had to move up nearly an entire dollar just to make up for how they were pricing throughout the opening drive. Entry was $1.11 where I provided liquidity at the mid-point. If I had waited until mid-morning to enter on a retracement and/or sideways action I would have got them for about $1. I also entered 4, but I later realised that this was an oversized position, so sold down to desired size.
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