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Thursday, September 05, 2013

Great day. One big mistake. Khol's Corp, Wal-Mart,

Good afternoon traders. Today's trades where a mixed bag of positive trades, and one very bad mistake. 

I could use the excuse of being human, but I think that would just be a cop out. I am trying to develop a set of trading rules that I will be able to follow, stick to, and become a more disciplined trader. This past week I have been profitable everyday. This is because my trading has been rule based.

 This morning I have to admit I had a expensive fall back.

My first trade out of the gate was a short entry in Khol's Department Store (KSS.)

Here are the reasons for my trade failure.

  • I acted to quickly and did not wait for a reversal candle indicator.
  • I attempted to short KSS above my MA's (against my rules.)
  • Once I was in the trade. I realized in my haste I had not planed a stop.
  • I quickly noticed she was taking off for the moon and further failed to act.
  • It was the first trade off the day, and I did not want to take a loss (which at that point would not have hurt) so I did not control my ego.
  • Now I prayed the prayer of the faithful trader. 
  • My ego then reclassified my day trade as a new swing position.

This was just 100% wrong and dangerous trading. The fact I am down on the trade is manageable. But the damage to my confidence that I am evolving as a trader is a higher  price to pay.

I'll take care of this in the morning.

I shorted Wal-Mart (WMT) on a pull back to prior high. Profitable trade.

I did attempt to short Pinnacle Entertainment (PNK) stop hit for small loss. 
(KKD) Krispy Kreme Doughnuts and (MOS) Mosaic Company small 100 share short trades both profitable.

If I had closed out the KSS trade early I would have still remained profitable for the day. Lesson learned!

UPDATE 9/6:  The Stock market Gods sent the market lower on 9/6 and I was able to recover with a $10 loss. Today I went short six trades. I was profitable only on 1. 

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