Shared by
markmandy54_BOWS
This has been on watch and i felt i missed the move yesterday but pulled up on radar again. Really liked the intraday bear flag with the falling MA's as resistance. I tried to get short at 232.50 but it wouldn't fill me so hit market as selling volume started pouring in and i got a terrible fill. Original plan was stop -.50, Target +1, +3, +5 and all hit if i stuck to plan. Instead i took all off at +1 which was foolish trading. A great reminder to trade the plan. As i'm writing this the short is up over +10 from entry. LET WINNERS RUN, is my mantra for today!! This should have been like my $SCTY trade of prune the profits and let rest run.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2013-10-08 10:01:57 | LNKD | sell | $231.810 | short |
| 2013-10-08 10:03:30 | LNKD | buy | $230.790 | 0 |
Comments
Nape_BOWS
BenRodts_BOWS
Dang. Yeah it looks like a lot was left on the table. Based on the first bear flag the stock was reacting off of the 9EMA. You could have sold half and let the rest ride until it crosses the 9EMA. Good news is you saw the set up and executed the trade for some profit.
markmandy54_BOWS
Tell me about it. I know what i did wrong, i know that i psychologically caved to unrational thinking. The chart said no need to cover until that 220 bounce. Should have (and next time i will get it) been a +10 on 1/2 easy!!
The funny thing is i almost reshorted on that bounce test but didn't.
Yet another lesson of play the play and let the trade tell you if the thesis was right.
gregr
It's worth thinking through exactly what you were thinking at the time. You got a bad initial fill - maybe you were nervous about getting out within your risk parameters. Maybe it was spready and trading all over the place. Whatever it was, try to go back and re-live it - experience those emotions again. Think about ways you could overcome them next time.
I beat myself up all the time for things like this trade - but telling myself I have to do better only partially works. Really trying to get to the bottom of why I did what I did helps a lot. At least for me! :)
If you happen to have a video recording of your desktop through this time, you're golden - go back and watch it a couple of times. If not, well, something to think about perhaps...
AnthonyC_BoWS
Make sure you put this lesson on paper somewhere. Make some kind of Ten Commandments to adhere to. You definitely don't want to repeat this in the future by forgetting the lessons of the past!
ckz8780
Awesome advice from Greg up there. Mark - remember that you cannot control the market. If you get a crappy fill you get a crappy fill, it doesn't mean the trade was wrong or your idea was wrong. It only means that due to something beyond your control, you now must either exit the trade (like you did) or accept more risk. Personally when this happens I write it off as something I couldn't control and choose to accept the additional risk since it's usually a small price to pay. In this case your "terrible fill" only added 0.30% risk. If your parameters are so tight that an additional 0.30% risk makes the trade not worth it, then it probably wasn't a good r/r trade anyway. In this case it is just the size of the stock that makes the fill seem intimidating. The daily range is routinely $5-10/share so adding another 70 cents to your risk is really nothing in the grand scheme of how this stock moves.
You had it nailed! Great job!
Oh also the other thing you can look at is the last time it broke down. When it dropped in the morning it shed like $4/share in a single candle. You can reasonably expect a similar move on a similar breakdown, so again adding an extra 70 cents was not much in terms of the potential the trade had :)
kunal00
having a mantra is just a mantra it dont mean anything. till u have an action plan of how ur going to actually do it its meaningless. You have to find the root cause of why your such an anxious trader as its a personal thing and then create an action plan around it. maybe even some conditioning type of thing..
like everytime u do this.. u will give me 100 dollars!
I love that idea Kunal, keep it in a lock box for me and once i master it, you send it all back as a right of passage. Sounds like a plan!
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Oh man, you had it!