mindless and careless trade. 3 days vacation took my focus away and the fact I made $210K trading profit in 2016 got me cocky and feeling good about self. As a trader whenever you feel great about yourself and ability you are doomed!!!! Lots of mistakes here. The entry wasn't the problem. The problem was after I got filled and it had "weak pullback dip" I didn't take it as danger sign and cover.
Instead I added to my short into next push expecting it would do fakeout breakout action. Wrong again as it barely dipped. Relative Volume is consistent and that's another big red flag!!! Lots of divergence from my initial plan but I chose to ignore them and I let it take me for the roller coaster ride. Then more mistake come along:
It had the first meaningful pullback BUT it stays above VWAP the whole time with relatively consistent volume!! I covered only half into the pullback and let the rest run. Instead of stopped out I added to pops that had weak pullback then finally I couldn't take it anymore and say enough is enough I covered all at $10.50 realized nearly $30K loss. I tried short later when HOD breakout fail but again didn't workout.
As I felt good about myself and traded carelessly and without sophisticated plan I paid the price! Got no one but myself to blame to!!! Part of the reason was it is the first trading day of 2017 so subconsciously I didn't want to realize the loss so I forced the trade.
Starting tomorrow! go back to the basics!!!!!!! Do everything needed and the result will speak itself!
volume tells me red flag!!!! frustrated but I must cover before it reclaimed.
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