Been watching the Youtube channel TJR lately. Ive consistently been watching the boot camp series he has. I got up to number 40 or so of the playlist and it kind of dried out. Not sure if I should continue this or complete it, but I have noticed several of his tips that I use lately, in order to setup trades. The couple of items I learned a lot from are Liquidity and how to use Time frames. I’ll probably go back to it, once I can get over his very extreme personality.
Today I took a trade, below, and wanted to document the mistakes I made. First, I jumped in at a buy order, but then quickly changed my mind a few seconds later when I reviewed the longer time frames again. Then, I used hedging to buy two more times to see if it would turn around and eventually plummet. I got stopped out. Here are a few of my thoughts on why I lost this trade.
- Don’t change your mind, stick to it. If I had stayed in a buy position vs reversing to a sell position, I would have done well on this trade. With hedging, I guess it really doesn’t matter, but something to consider.
- I moved my stop lower. When learning about Risk/Reward, I got tips to make sure I didn’t bounce on a stop too soon, so while the trade was happening, I moved my stop to a lower position as to not go over my daily loss limit. I may need to switch to Mini’s so that I can let hedging work. Market shot up at open, so it worked in my favor to curtail my losses. Not sure about this “mistake”. This adds weight to mistake number 1.
- Getting into a trade that can take some time, right before market open on S&P, is usually something I should not do, unless I am absolutely sure that the market can complete my plan before open. Below is what happened after the market opened. Volatility can bring wins, but mostly losses. Really should not rely, or not plan for, the rubber band bouncing too extremely.
