Gross PnL: +$595.
Net PnL: +$449.
Preparation: 6/10
Patience: 5/10
Risk-Reward: 5/10
Discipline: 5/10
Flexibility: 3/10
Greed: 3/10
Over-trading: 5/10
Pretty bad day. Definitely didn't deserve to make any money. Was lucky SAEX came along as a decent opportunity, and even then my "process" of trading it wasn't that good.
Was an enormous amount of stubbornness today. Out of the open I only really had 3 trades that I held onto for a while and all three of them didn't work (AVXL, EVBG, and REN). So I spent the morning fighting them somewhat (which is fine), but failed to recognise when they were holding trend post 10:30. I had ample time to get out of them at reasonable prices once it became time to stop fighting and flip out of things into vwap pushes and didn't.
(1) REN could have been gotten out of at breakeven (which was a little bit below vwap, which was weirdly low) quite easily.
(2) AVXL could have been gotten out of at vwap, but I was stubborn/greedy and wanted a flush through vwap to my break-even price. This would have been approximately a $200-$1000 loss (depending on where I opted to in a non-greedy manner).
(3) Finally EVBG was the one where I probably just end up taking an exit where I did, or perhaps slightly earlier if I was more onto it.
If I look at the trades leading up to the stubbornness, I'm actually pretty happy with the executions (except going over max size on AVXL). Risk was decently controlled, orders were staggered etc. It really just comes down to not recognising when I need to switch into damage control instead of sticking with idea. Basically I didn't follow my methodology.
A thought I have relating to this, is every day at 10:30 take a measure of my psychological capital. Has it been a rough morning? Stress-free morning? Am I agitated from missing something? etc etc.
Finally SAEX. I had on my morning notes that if a low float runner came along I was willing to trade it with 6000 shares. SAEX fulfills this requirement, except that the price is slightly larger, so it's probably equivalent to trading 8000-10000 shares on a $4 low float stock. The big thing is that I was wanting to "crush" it too much and make up for losses, instead of focusing on covering risk, putting myself into a position where I can short high of day stuffs etc.If I had been forced to stop out in the $10.70-$11 range it would have been a $2500-$3500 loss, making this quite a nasty day overall! Big thing comes down to that I was holding full size with an average price that I wasn't super happy with; and being to focused on getting a wash to vwap to cover. Nothing wrong with reducing size, to ensure can capture the move to vwap and not risk getting puked out.
In fact if I had done this, I would have made a lot more money on SAEX!
Did a reasonable job of doing this on the first parabolic push.
Big problem was on the push at 13:34, it immediately got sold out and I jumped in because I thought it was a fake-out. Again too aggressive and pre-emptive. Things don't just fake out in a few seconds. They take a few minutes to confirm and develop.
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