Thursday, February 25, 2021

Up $125 does not tell the whole story

The whole story is I was -$5000 and back today. Heart attack on wheels, as I like to say. 

What happened? Is it because I have neglected to annotate charts lately? Will do it now. All of them. Ugh.

I think on days like today, I try to make something from nothing. There were no trades. My setups weren't really there (arguably only the TWTR calls). I tried pulling trades out of my sleeve. I need different techniques for that. Ex: today I found myself trying to use the Meir Barak technique not to sell on spikes, but to then put the stop beyond the spike. I think that just led me to bigger losses today.

Market is weakening, and there is more volatility. It's hard to find my setup - things breaking from a base - because everything is just so wrecked that nothing is basing. So I'm trading things that are nms, maybe that's part of why my usual techniques aren't working. 

This tells me I should be developing more sophisticated plays for more volatile markets: reversals? oversold? etc. Maybe look at SmithInTheBlack for ideas? 

Definitely, I should be trading SMALLER, which I didn't do today. And I should be stopping, which I also didn't do well today. Do I like shooting myself in the foot?

I'm remembering the feeling from last spring, where I was "right" but wrong timing or couldn't hold on. I need to figure out where to tweak my system, and meanwhile not lose money or get toxic.

For starters, the markets:


TWTR Breaking above consolidation, very strong. Calls didn't work. I gave too much room. Not sorry I tried puts, but that didn't really work either. Wipeout on the add.













TLRY, calls (on what setup?), followed by puts. WAAYYYYY too much size, about 3x my usual. wtf?!











TDOC, cute little trade that I didn't let ride bc spread. I sold my best price at $6.70. Later in the day it went to $19 (without me). I got my piece. Lucky, considering I wasn't supposed to be in something that spready at all.












PLUG went a long way to saving my day. But again here, I was in really scary big.












MT was basic looking for continuation. I like how I waited for the entry, but the daily setup wasn't great.












Last and least (lol! see what I did there?), I became possessed to jump into AMC puts (tiny position), and then immediately became chicken. Took my first immediate chance out green for $43, but it did eventually go to my original target and not to my stop.




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