* buys/covers are marked on the charts in blue, sells/shorts in red *
Disappointing day - I get slapped once in a while with a day like this, reminding my how important it is to stay discaplined and obey your rules without exceptions. This usually happens to me on a Monday, and after a decent run.
Today it was all about $CREG - I broke 5 of my 7 trading rules on one trade.
First mistake was buying on a pullback before it actually started to show signs of reversing, before putting higher lows in. I had no defined r/r in this case.
Then the trade went against me and I broke 2 further rules - I added to a loser, and ended up with a position size which is twice what I usually trade for stocks in this price range.
Finally, not only I didn't cut my losses quickly, I let myself go over my max pain threshold ($1k) three fold!!! This just re-iterate the importance of the max pain threshold, would have saved me $2k had I not ignored it.
Finished down $2500 or so.
Lessons:
- Obey your damn trading rules
Trade Highlights:
$CREG -$3000 - every little bounce got sold into, had I waited for lower highs I'd least have set r/r and end up with a tiny loss
$ASMB +$675 - this is quickly turning into my favourite setup; chart is easy to read, usually happens around 1-2pm; huge run up followed by a pullback. Then notice the consolidation and higher lows, you can just tell it's tightening and getting ready for a late day push to test new highs
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