Chapter 3 Trading journal #146–08/12/2019 +$63

To-Do list:

• Go over my checklist.
• Go over my every note with all my setups. Work on internalization.
• For every loss over my 1–2R, I should save and study.

Main losses today are related to the following:

• Giving too much wiggle room to the low floats. The exit signal should be not only a second higher low but a change of the pattern as well. When over sudden abnormal volume to the upside comes in. This is the time to GTFO, Cut losses. This is a new exit.
• Midcap's entries. They should be really great. A+ entries. This stock need to breathe.
• Shakeouts are closely related to the entries. Good entries mean there are no shakeouts, only stops when proven wrong. (I had 4 shakeouts today, and I would like to address them — all of them are only due to poor entries- this is the only reason they happen)
• YRIV — lost $30 premarket ( Avoid Premarket), lost $30 when the range was broker and stock was making and Holding new higher range. I saw this pattern enough times to start avoiding it (lost $30), lost $50 on a slippage ( stops didn’t work) lost $50 on the actual trade, and because of all this nonsense, didn’t take the setup into the close, although I was watching it, the loss was already outrageous at this moment. My job is to make sure that I’m not in the same position I was in today in the YRIV.

Short summary:

• Pay more attention to change in Volume patterns, and work on better entries with midcaps (only As). These will improve exits and eliminate shakeouts.

YTEN +$53

KHC +$34

#1 poor entry, buying breakout. This can be done only at the bottom of the range. Everywhere else, This should be an avoid. As that’s what a chase entry looks like.

#2 Shakeout ( market sell-off)

AMD -$19

The stock itself was weaker than the market. It was a mistake buying it for a bounce. I should buy stocks that were holding support or ripping up while SPY was tanking. Relatively Strong.

Also this was a perfect MATA short.

FTCH -$34

Better entry would have led to a complete avoid of being short.

My thesis was long against $11. Yes, the stock was not able to make new highs, yes market was selling off, and yes it looked weak at some point, but it never, never, never would have shaken me out of my position had I had the long entry where it should have been in 10 s

RKDA -$43

1 — Shakeout. Through day 2, too many people are buying dips. Nope. That’s ok.

2 — Stupid short after the shakeout. Broke my rules here. I was shorting ascending bids.

APOP -$46

1 — I like how I got out here. Stock made 2 higher lows.

2 — Volume was the key to getting out

YRIV -$149

1 — Avoid trading premarket; there is no edge

2 — Late exit +Volume start coming in, should have been out earlier.

3 — That’s a pattern I have to avoid. “Breakout range pattern”

The chapter associated with these trading journals is still in production.

Read from the beginning: Chapter 0. What it takes to be a seven-figure trader, and how it all started.

or read my latest post: Beginners guide to trading mistakes. Common day trading mistakes with 50+ charts and examples.

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