Ugly 2.0 - AKAM, HANS, TWTC, ADM, JOYG, BRCD
My trading has completely turned around since I became allergic to losing money and started closing my trades “too soon.” I started trading like that last Tuesday and in the six trading days since then, I have had only one down day. Maybe it is a coincidence, but I don’t think so. I feel much more in control. It feels great. I’ve decided to post all of my trades today to give an example of what my trading is like.
First I bought AKAM just after 10:30 at $47.04. After it spiked up, I sold 40% at $47.47. It kept going, so I sold another 20% at $47.58. I wanted to hold the rest into the close, because I thought there was a chance that AKAM could run, but I closed the rest of the position around noon at $47.35 because I didn’t like the feel of the market.
I saw some volume on HANS and it had opened strongly and had formed a narrow 10:30 candle, so I bought a small position before it broke above the candle at $32.09. It didn’t move in my favor so I closed the position at $32.03 and decided to wait for it to really break out, which it never did.
TWTC seemed like it had some support at $19.90, after having tested that level on the three prior candles. So when it broke over the 11am candle, I bought a small position at $19.97. It didn’t continue so I closed half ten minutes later at $19.95 and the rest was stopped out six minutes later at $19.89.
Although consumer staples were holding up, ADM looked weak after earnings so I shorted it when it broke below the 11:30 candle at an average price of $38.24. I always have a hard time shorting ADM - it never wants to give. I covered about 12% at $38.19, another 25% just after 12:30 at $38.05, another 25% at $38.035. I wanted to let the rest go into the close, but I saw a lot of shares sitting on the ask at $38, so I put my stop at $38.01 and I was filled just before 2pm to close the entire position.
JOYG had a lot of support at $39.50, so I decided to short it when it broke at around 11:50 for an average price of $39.475. I chickened out and covered 30% too soon at $39.32. This was too soon, I should be a little more patient than this. It then spiked down and I covered another 20% at $39.15. I shot my 50% wad too quick here and wanted to hold the rest, but the market wouldn’t seem to break so I covered 20% at $39, 10% at $38.84, 10% at $38.95 and the last 10% at $38.97.
Finally, I saw some support on BRCD at $8.08, so I blew a load of commission and shorted it when the bid was evaporating at $8.08 at around 12:30. 40 minutes later, it wasn’t doing much for me so I covered about 35% at $8.05 and the rest a little later at $8.07.
Now none of these trades were spectacular - but the cumulative effect is pretty big. For example, if I had held all of my trades until they hit their stops or the end of the day (as I pretty much used to trade) I would have lost 3.5R instead of making 3R.
