This was another trade that I continue to lose on. This is all a learning lesson. Lesson learned. Do not short a stock that is down huge look for the long opportunity first. Do not become biased on the stock just because it is down huge. The move it can make to the upside is usually quick and violent. Look for a reason to get long. On this chart, the long opportunity is not present as the premarket data is not there. There was a long opportunity that was present over the premarket candles. The short opportunity came way after I left for work. The strategy that I have to come up with needs to be on a shorter time frame as the signals that I am receiving on the 5-minute scale doesn’t work for the time that I have allocated to trade currently.
Another huge down day because of the same type of trade that I took on Friday. Now that I know what side of this trade that I need to be on, the mistake will not happen again. As for a new strategy, I am considering looking at the 1 minute time frame and the 3 minute time frame to have more data quickly and to make decisions better going forward. I like the longer time frame but I just do not have the time to make the trades I want, based on the current time constraint that I am dealing with. I will play around with different time frame to get the data that I am looking for. As for now, this is the same type of trade that I continue to lose my shirt on because I am always trying to short this type of violent move down. I should be net long this type of trade and even looking at options to purchase on the call side to make more money. I did get a piece of trade in which I made some profit but it wasn’t a lot and it didn’t even matter.
I took another trade that was a small loss IDEX but it was a mistake. I was watching the chart and I accidently clicked the mouse. Nothing huge here. Fat finger mistake.
P&L – ($700)
Just a horrible day all together. I am still in the fight to make the money that I know is there and I am taking it one day at a time. I continue to analyze my trades