Overview
As the markets continue to show weakness, my risk management has done quite well to stop me out of a majority of my remaining long positions. I did take a few trades that were not in my main focused trading plan, but they did work out. Especially BHP. Unfortunately I lacked discipline on Friday and tried to scalp HCD after the mega move.
Numbers
Trade Analysis
A+ Trade: I had just been stopped out of a few positions on Friday, but this setup was too good not to take. I got in at 7.09 with the stop set at low of day. It pushed higher all day and ended up 4.6% up on the day and closed strong. Hoping this is the beginning of a new leg higher, but ready to cut if it fails next week.
Other Trades: I had been keeping an eye on the Chinese Stock Market as it had been down close to 50%! After noticing a breakout in the USD/CHN I set an alert on IZZ, an ASX listed ETF that tracks the top 50 stocks. It is a mean reversion trade, but as the US markets are starting to roll over, I thought money might start flowing into Chinese Equities again. My alert triggered at around midday Australia time so I jumped on it. It actually bounced quite well after my entry. I have a clear stop loss at the fail of this higher low bounce.
I also took a flag breakout in FFX. Wasn’t too happy with my entry and had a feeling it might fade all day but it was actually quite strong. It ended up 16% up on the day, around 6% up from my entry.
Mistakes
- Scalping HCD too large and too slow.
- Letting trailing stops stop me out in first hour then watching them recover
Goals for the week:
- Don’t be so quick to take profit if these new positions begin to work.
- Trade less.
- Only take A+ Setups with SL further away.