Trade Ideas: A
- I had a great idea for each of my trades today. Firstly the continuation bear flag breakdown was really nice because we had WAL breaking to new lows down 60% and PACW doing similar. KRE was ripping to new lows from yesterdays major drop and was down about 10% itself. JPM BAC all breaking to new lows as well. ADD falling off a cliff, TICK below 0 and ton of values below -600, VOLD was at -2.5 and decreasing steadily. For all of these reasons I was ready for the continuation short. I took the profits at a very nice level as well. For the second trade I also had a great idea (but not the best execution) where I heard from fuckin toby that the WAL news was not true. If that was the case then this entire after hours drop was unwarranted and we should end the day flat. I took the long when I saw BAC JPM both holding their lows and making higher lows which I thought was a great idea and somewhat unique to my style. I got a nice little cushion to my profits and walked away. I went short when I needed to be short and I went long when I needed to be long.
Execution: B-
- The first trade had near flawless execution, I took the break of the flag and held through about 3 points of drawdown but each move was still a lower high, then I took profits at 4069 because the low from last week was 4068 and I was not expecting us to fly throught that level quickly, and if we did I could trade it anyways. There was no reason to hold for some wild move when yesterday we already had a massive move to the downside. I got out near the bottom and then pretty soon after I was flipping my bias. I got long when I first heard the WAL news was false, then waited to see if BAC JPM were going to hold higher lows as well as XLF. Once they held lows I got in and risked the wick low of about 3 points. I held for about 4 point winner but I originally had a target at the break of previous lower high. If I held that trade to my thought out target then I wouldve had 2 back to back 10 point trades. For that reason I am giving myself a B- on execution. The first trade was perfect, second was not. Although getting the second trade in the way I did I think was actually very nice.
Mindset: B+
- I came into today quite level headed but something that I think was very interesting was when I started to talk to Nate about how funny it is that we are so scared to risk 5 points (25 bucks) on a trade. I was just sitting there like wow I am terrified to take a trade and I am going to risk about 25 dollars which is absolutely nothing. What the hell am I so scared of? I understand that last week I had it rough and that is mainly the reason why I am scared but I really need to get out of this mindset of having green streak followed by red streak followed by green followed by red. I want to be able to just let it all go and maintain composure throughout the entire day and know when to take my risks and when to fold. I think this will come in time through doing the playbooks since having clearly defined parameters of each setup will make them so much easier to take.
