April 16, 2008

Net: -$116
LFT: -$155
Frame of Mind: Confident

xlf-041608.pngjpm-041608.png

Started shorting JPM premarket at 43.30, and posted another at 43.75, because of the daily 1,5,13EMA21. To cut at 44.00. Went up to as high as 43.96, then sold down to as low as 43.10 where I was already up $135, together with my short on WFC. However I was so focused on my gains and the potential windfall, I did not pay attention to the other scenario and put trailing stops, or where it was best to take my gains. In 3 fast minutes I was back to -$80 and I was forced to cut at 44.10, when it jumped through 44.00.

It is very seldom for stocks to move one way throughout the 3 hour day session.

wfc-041608.png

Shorted WFC at 29.52, to cut at 30.10. I was in too fucking early! it pulled back up to 29.80, and in very volatile fashion choppped around the support area. Shorted another as it broke 29.37. Went down to as low as 29.00 however….

Simultaneous with the JPM trade, I was so focused on the gap fill and the potential windfall that I failed to follow the 1 minute doji. I saw it already! But part of me didn’t want to give up on the HOPE, hence I didn’t exit upon the signal. 

What I should have done is just exit my positions and take some time to re-evaluate.

What I did right:

Followed my discipline through, I was down $80 at the beginning and I didn’t take out my shares until I was up $135, however I was too greedy and ….

What I did wrong:

I failed to continually evaluate the trade. Focused too much on my HOPES. Didn’t plan out the scenarios.

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