In the first stock, I think I went long PX when I saw a bounce in APD. PX did not bounce and made new lows. I shorted at the lows and it bounced. After I covered, I saw it drop again so I went short and lost the 3rd time. If you look at the higher time frames, 5 min and above it was ugly. There is no reason to be in the stock yet there I was.
The other stock I have up is JEC. I had 200 shares and made some money on my first trade. My avg price was 60.10 and stock drops to around 59.50 and makes a bounce back up to 59.89. Since I was down over $200, I was trading my pnl instead. I wanted any little profits I could get and was afraid that I would lose it all so I covered. After I cover the stock goes lower and I thought I might break new lows so I shorted again only to get a 35 cent squeeze on 300 shares.
- I let my pnl affect my trading.
- I have not adjusted to the decrease in volatility. A week ago stocks would move down $1 or more with little or no pull backs. I still think I can get such moves out of the market. I have loosened my criteria for entries as well as my stops.
- No clear trading plan. When the market was volatile scalps and tight stops worked out for me. Now that the market slowed down I am getting chopped up by poor entries. I have abandoned my rules and acquired some bad trading habits.
- Have a clear trading plan with entry and exit criteria. Follow the plan.
- Trade only when the criteria for the entry line up (confirming market action, supporting chart pattern, and tape action) When I do not see a trade I have to sit on my hands.