I started the day down over $200 again after a few trades. I felt pissed because I always tell myself to look for the best setups. I chased SPW going long and lost 30 cents on 100 shares. When it broke the fig. at 103, rallied to 103.50 with light volume and came back down I went short. I was late again and got filled at 102.75. I was stubborn and held on though I had the chance to get out by losing a few pennies. The stock squeezed me for $160 when I got out at 103.50.
After that I went through some struggles and traded with fear. I found AAP and got my money back and was up an extra $40. Like all my winning trades the stock had the following characteristics.
- A gap open and a consolidation in the 15 minute chart. Stock is also close to the 5MA.
- My entry is slightly above the high of a narrow range bar. (5th bar)
- Stock runs up on increasing volume
- I have a strong feeling that the trade would work as it starts to move my way.
Just when I was feeling better I got into some impulsive trades and lost my gains. Then I got hit with a bigger loss in a long in MTW for $125. I was demoralized again. Like all losing trades this trade had the following characteristics.
- I chased an entry.
- I anticipated a bounce and was early on the trade. Stock drops another 25 cents before it bounced up $1. I had 500 shares and I lost 25 cents.
- I had ample time to get out with a small loss but I held on until fear sets in and I get out with a much bigger loss.