Harsh critique of AM trading this morning.
I had a clear read on the market this morning. I was confident in my premise and directional bias and made a pre-market bet with a 1/2 position.
The 1/2 position is because I do not like taking pre-market position. At least I did not used to. They tended to get stopped out or at least re-tested. However, this was prior to my more detailed reads of the past 6-8 months.
I added to the initial long on the breakout as planned. Once the trade started opening up, I felt it would pullback significantly but do not allow early exit on prime entries like this one.
I moved the stop to a 5 point net loss right at the low of the day. This was a mistake. The price came down and stopped me out on the extreme low tick. The trade was not invalided with a test of this area. I had no business putting a stop there.
What really led to this is me trying to tip toe into a position pre-market. This is a type of indirect hesitation that needs to be addressed. I the trade is good for a 1/2 position, it should be good for a full.
I think I am only cutting myself a bit short on my winners and leaving the door open for management debacles like this morning with the scale entries at premium prices.
I am going to abolish this practice for now. At premium prices.
I was long 4 times this morning and figured out how to lose. Even though my read was spot on. I had a sequence much like this last week.
I can not allow a correct read to go unpaid in equity like this. I need to be right or wrong.
As I am writing this the market is making its move up exactly as premised in my prep. This is extremely irritating and has caused at least a 10 point tilt against me in equity. This is more proof that I will rarely lose due to premise.
I need to keep in mind that a majority of my losses the past 2 months have been do to hesitation and lack of full commitment on positions.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.