I'm so glad this day is over!! While today was a good day in terms of my trading results, it was a so-so day for my trade management. I pulled 1.184 points out of the market, but I didn't follow my trading plan all the way through. Before getting into that, it should be noted no trade should be taken without the trader at least acknowledging the market's premarket movements; as this provides an indication of the direction of the market for that particular trading day. Shown below is today's action in SPY.
Since SPY traded above yesterday's close, my trading bias was LONG. Shown below are my results:
I took this short (although this contradicts my trading bias) because of the gap location on the day chart. It didn't work out.
This is the trade that I violated one of the rules of my trading plan. The stock moved lower to my stop, bounced around it and then traded below it. My loss would have been a little less. Luckily, I didn't continue to hope or pray that the stock would come back too long as my loss would have been greater.. Lesson: Follow ALL aspects of your trading plan!!!
I did the trade in FSLR because it was on my radar earlier at $27.60 and $28. I didn't trade it. After seeing the move around 1:50, I watched the price action (purely computer driven-no retail orders could come that fast). I felt like I knew where the stock was headed. While it worked out (I got out too early), I felt like I needed a better reason for getting into the trade other than "My gut told me to do it". I took my little profit and ran.
Well, the day is over and I lived to fight another day in the market. I'll be back at it tomorrow.