Shared by
oly_BOWS
This disaster of a trade pisses me off.
AEO was gapping down and as the morning action started to break further, I got in at 16.8 short around the same time as K. Stop at 16.95 above the EMAs and the previous candle.
Then I went to scale out at 16.71. Yeah, I "sold" this to scale out, giving me a net 1500 short position. I should have immediately bought 1000 but I thought hey, it is still going down and I should have started at -1300 anyway. (-1300 * 0.15 stop distance <= 200)
Then AEO ripped my face off as I deserved. Even better, the original entry came out a scratch. The P&L hit was pretty minor, but this trade was a disaster in how I executed.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2013-08-06 09:50:42 | AEO | sell | $16.800 | short |
| 2013-08-06 09:58:15 | AEO | sell | $16.710 | short |
| 2013-08-06 10:50:45 | AEO | buy | $16.810 | 0 |
Comments
oly_BOWS
Yeah the problem was I did have the ability to short further so it just lets you. If it had been a long, I could also oversell and go net short.
Ha, I've done the extra 0 before too. And options at the wrong expiration date. Oh and you don't want to know how I thought quantity worked on options for my first trade.
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What platform do you trade on? That is interesting that it doesn't notify you that you don't actually have shares to sell. I believe most look at a short as different than a sell order. Yikes.
As for letting the extra shares ride, I feel ya on that one. Think that has happened to every trader in some way, shape, or form at some point. I've done the extra "0" for share quantity on a buy before. Then let it ride. Being in 10 times a larger position than you had planned on is not good. And I paid the price.
These mind over matter issues separate the losing traders from the winning trading, I'm sure. So hard to back out of an accidental trade cause you figure you'll end up paying double the commission. Funny, cause if it goes awry, the $7-15 in commissions is a fraction of the loss.