This is a repeating problem which I have, sizing in too much in the beginning because I FEEL as though I can handle it but in fact the move off breaking news is very fast and since I had sized in too big to start, I had no other option but to take the BIGGER loss vs a small loss or could have seen how it would act if it had gone against me. In addition, I feel as though I had missed the trade when I saw the wick showing strength on the opening move.
There is nothing wrong with my thought process in which I wanted to trade this breaking news stock, but emotion always come into play when money is attached to a set up. Had I sized in smaller or sized down when I saw the indecision candles, I could have waited to see the confirmation of break of 89, or even if it went against me a dollar, I could have added to a potential winner when the new level failed right below 90.
I need to look for the exaggerated move to either direction during the FIRST 2 TO 3 MINUTES to see there is clear panic/fear or euphoria, some type of clear overextendedness.
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2016-02-17 14:14:32 | MON | sell | $89.130 | short |
2016-02-17 14:14:41 | MON | sell | $88.980 | short |
2016-02-17 14:15:40 | MON | sell | $88.860 | short |
2016-02-17 14:16:11 | MON | sell | $89.150 | short |
2016-02-17 14:16:49 | MON | buy | $89.810 | 0 |
2016-02-17 14:17:05 | MON | sell | $89.620 | short |
2016-02-17 14:21:25 | MON | sell | $89.430 | short |
2016-02-17 14:25:12 | MON | sell | $89.180 | short |
2016-02-17 14:36:15 | MON | buy | $89.370 | 0 |
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