Excited with the close of this week…I think giving myself a solid “talking to” needs to happen more often. Since I started trading bitcoin in addition to the market, I find myself daily writing out one of my favorite John Wooden quotes as I journal pre market:
One of today’s trades was NKE, in sympathy to FL. My retail dashboard was complete red today, just a bloodbath on nearly every ticker. FL reported with a huge miss, so I again turned to my old faithful NKE for a trade. NKE gave up the gains it had in the past two months in this week alone, happy to say I captured nearly all of that in my trades. I started this one in pre-market, which I generally don’t like to do but considering how bad FL news was, I knew it was a solid risk to dive into NKE early. I am glad that I did, as most of its move occurred in pre market and the first part of the morning.
One of the rules I have for late Friday trades (post 3 pm) is pretty simple: NO SHORTS. Particularly late in the day, it seems shorts are closing out positions and bounces seem to happen more often than not. NVDA, in particular, is one ticker that forced me to write this rule, as I have been shorting it in vain only to see it rip into close on Friday’s. Because of this, when I saw the overall markets beginning to stabilize a bit and the support that NVDA was coming into at a decent reversal time, I felt it was a valid trade. While it didn’t end up ripping as I had hoped, I still eeked out a profit and felt like I managed the trade well. One of the moderators in the IU chatroom (a fierce trader-I pay attention to every note he writes) called out hesitation on eod flow due to the market volatility today, which is why I swiped the profit when I did. I have been working hard at starting in small with trades such as this so I can get my average to where it needs to be, which is one of the biggest “make or breaks” in trading. You can be right in a trade but have a horrible average and get forced out due to current loss amount, only to see it move in your direction. My experience has taught me one huge lesson…starting small can provide some monster gains and will keep you in trades much longer. Size is relative to your experience level and I have no doubt that I will look back at my starter size a year from now and see that much larger as I continue to build as a trader.