Monday trading fiasco

Well, another down day. I can blame all sorts of outside factors, mainly interruptions or distractions that resulted in loss of focus, and I would be correct but there is one underlying factor that is the crux of my current loss.

I haven't bothered to run the numbers but it would be in the $60 net range. I have set a $50 loss limit per day, before commissions. Once I hit that I am not to trade any more as I would consider that I have "lost it" for the day...I didn't expect to hit that in two trades and I didn't actually expect those to be my first two trades of the day. I chose to bail early, even though I thought there was a good move left, I just was in the wrong frame of mind...perhaps I should have faked it just for the learning curve.

I started out the day seeing a good gap up from Friday's close. Given the recent activity this would lead me to favour short trades today, so that is what I did. My 20 minute rule had me sit out too much of the first move ($1 of it) to feel comfortable getting in...so I waited until what looked like a good setup to develop for the downside after a brief rally or consolidation at a support/resistance level.

1024h and it looked OK. Price had dipped nicely below the primary PP for the day and I might have expected it to continue to head down. I planned for a tight mental stop as I was not sure that it would head back down convincingly. I held through a small profit to only have it turn up and I got out at a small loss. Depending on how you look at it, in too soon, out too late. Although had I been in sooner I would have captured a bit more of the last drop to the low and might have been more satisfied to close early.

I tried again at 1103h and had the same thing happen, except worse. larger loss even after calling the target, hitting the target and bouncing off the target. I held on too long.

Problems:

The limit order is taking to much thinking and time to execute well.
Me not listening to my intuition. Get in when I think get in. Get out when I think get out.
A little greed making me hold on
A little fear keeping me from getting in earlier

I must admit that had I placed the third trade I would have been on the leading edge of the last large move down for the day. Even if I had waited for full PP break confirmation there was still $1 left in the move.

I checked in before lunch and saw the activity and at least knew enough to not try to trade beyond that point. The trading range for the rest of the day is likely to be within a dollar with lots of small moves, not worth the hassle.

All in all a good learning day even if I close it on a loss.

JD.