Today was a bad day for trade management and mistakes as I ended up down 1.5R when I should have realistically achieved +6-7R. I lost focus about half way through the day and made a humdinger of a mistake on my platform in AXP – I tried to close my 400 share long, but in the process managed to buy an extra 800. Sitting with 1200 shares of AXP was not a situation I was comfortable with, especially when things began to tick south almost immediately after my trade error. It was also above my risk threshold of no more than 1/3 of buying power per position.
In a rush to get out, I myself caused a mini sell-off in the price (given that I exited the whole lot at market) and took a 1R hit on that trade alone. within about 90 seconds of my exit, the stock was back to 8 cents above my entry price where I could have scaled out for a small profit or at least a scratch. Horror show trade management. You will actually notice the price action if you have a look at the 1min chart in AXP at about 13:30EST around .21-.09.
In the aftermath of that AXP mistake I decided to exit my remaining positions to avoid any tilt trading. Unfortunately, these were shorts in LCC and SOLF. Not long after I exited, these began to hit their lows and continued to my dismay. I also made a terrible NFLX trade and got stopped out of a CAL short on some ridiculous price volume action (this followed LCC to new lows). I was also closed out of a UNM short which also went to lows. All of these entries were sound setups for the day, but I managed them badly.
Despite so many mistakes today, I am still only down 1.5R which is actually a good result considering. I was heavy on the costs today after trading about 5000 shares and exiting a lot of positions at market. For the life of me I can’t even remember my good trades apart from the profits in LCC and SOLF and some decent ranging in X. I was also too cheap on a few occasions, and way too slow on a few others.
I’m struggling to get atop my intraday watchlist at the moment too, two monitors is just not enough for day trading. To combat this in the short term, I am planning to only watch 5-6 stocks on an intra-day basis. This watchlist is likely to include AMZN, POT, RIG, X & RIMM because I generally have a good technical handle on these. I am lacking financial and commodity exposure here though. I’m going to steer clear of the sector relativity over the next few sessions and see if my entries and management improve with more defined focus.
No charts tonight because I’m in absolute agony with heartburn right now.