Frame of Mind: Happy Day
First traded JCP, when I saw it on my ToS scanner. Started shorting .65 but it went up some more so I cut at .80. Shorted again at .78 when I realized upside should be limited now based on previous day’s resistances. True enough, it got slammed at the top at .00 beating it down to .40 then .20. Took mine at .40. Not bad, but if I had 200 shares would have held the other half longer.
Traded the financials next.
BAC was having wicks up and down, JPM was triangulating up. XLF was a W bottom. I bet on the formation even before it broke out. This proved to be a futile excercise. I grinded I bit but I stuck to my conviction and managed to squeeze some out of them. I went long BAC and JPM at the same time so I could track the XLF. It eventually went to my target prices of .85 for BAC, .25 for JPM, and I went short from there. It went up further……..
At the worst, I was back down to $30 from $100, the rally almost took what I painfully made in a short run.
What I did right:
Stuck to my plan on the profit take
What I did wrong:
Had not anticipated the worst case scenario.