Thursday, 7 April 2016

Trading: 04-06-2016

8:03: Cold shower was particularly cold this morning, but then got used to it by the end of the two minutes. Weird.

8:09: Now I know what I have to do today - be prepared for worse case scenario and avoid getting stopped out. Keep flexibility high. Take profits quickly. Really want to ensure today is profitable to (1) Restore any lost confidence, (2) Make sure I don't have to decrease size (2 losing days in a row...). Want to get back on winning steak.

8:39: Short 5 minute meditation. Not particularly enjoying the meditation. That being said, a good idea to sit down focus on breathing and slow mind down just a little.

9:43: Caught short in a parabolic on MOMO on the open. Covered down some size at a loss to increase ability to short pops - really good mindset, there is an edge to the cover, despite it being at a loss.

9:58: As per mission plan today am focusing on ensuring I have a lot of flexibility to add as positions go against me. Thus far this has saved me with MOMO, and has kept me minimising CREE - which is fine.

10:00: Literally just added to MOMO after getting sick of waiting for pop right before it popped.

10:11: Somewhat annoyed about that MOMO add. It's above vwap and moving averages still cleanly showing uptrend. Yes it did look like it was stuffing, but that's one indicator out of quite a few - no reason to get to 3/4 size.

10:45: Sensing stubbornness start to kick in. CREE a really obvious long, and I'm holding short "looking for the stuff". Not the play.

10:53: Hypothetically if I didn't have too much size already on MOMO, shorting into the high of day, and covering risk immediately would have been a great play. Looking very strong, but by playing the channel can end up really nice. Am now watching it for a high of day rejection type setup. Too strong to fiddle with on the short side too much.

11:13: Have been trying to position for flexibility and avoiding stop-losses and have ended up holding a few stocks when I shouldn't be. Hard balance. The key here is that I am holding them through a grind (therefore no edge), whereas holding them into solid one directional moves is different (E.G. VRX move versus MOMO move).

11:29: Very much feel like I'm trying to pick up pennies in front of a steam roller today as VRX goes parabolic, when I'm already short. Also feeling somewhat of a "lack of methodology" perhaps today - whether or not there's any validity to that I'm not sure, but may be something to have a think about. Perhaps go through my favourite setups to reaffirm.

12:50: Definitely think it's worth going through exactly where my edge is. Far too much counter-trend trading today just for the sake of counter-trend trading. As for the stubbornness - holding full size positions as they go against me, that's just not good enough.

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