These last weeks of trading have been treacherous for intraday trading. The choppiness and indecisiveness in the market has been present everyday. Everyday there are large gaps up/down and the range for the day has been wild. Nice pennant coiling patterns are broken up and then down shaking every stop near the pattern out. During this time I reduced my position sizing to 1/3rd of normal and that has help keep my losses to a few 100 on losing days which on a 100k portfolio is very conservative. Risk management has been my number one focus. I also reduced the number of trades from 30 down to 10 or less. waiting for higher reward setups since I was getting stopped out at a much higher rate than normal. Last night I went back through all of my trades to try and find a better strategy for this current market conditions. What I found was the shorter the timeframe the more noise was present. If I backed out my trades to a 15 or 30 minute chart the overall moves became clearer. Trendlines weren't working that well but stops back at the LOD or areas of support that spanned a few days were providing much better stops. So today I took 2 trades off of a 15 minute chart one didnt work out well -200 the other worked well and I got +940 out of it. Until the crazy prices swings on a daily basis subsides I will be focusing on few trades at a larger timeframe.
Today could have been an amazing day, but I made two order mistakes that cost me 4kish, I also made a few missteps with the miners I will give you a recap below. As for the miners I took 2 trades in JNUG trying to pick them up for a quick 5 minute bounce. Both trades my timing was correct but when I moved my stop up I was taken out with .30+ of slippage cost me 300+ in each trade. I looked at NUGT and saw spreads of 1-2 cents and decided to switch to playing NUGT/DUST over JNUG/JDST for quick trades. I was wrong on my nugt trade and lost $300 in it. I switch side to dust and picked up $170. Later in the day I grabbed JDST since slippage there was also 2 cents. I set my stop 2 cents too tight JDST came down to 9.80 took my shares and continued to 10.30. The miners today did not treat me well but I managed my risk on the trades and outside of JNUG's HUGE slippage I was fine with my trades in the space today.
Mistake #1. I spent the first half of the day playing UVXY I was up $1200 in about 6 trades. I wanted patiently from my sell at $33 for it to pullback to the 5 minute trendline from the AM I picked up 2000 shares of UVXY at 32.23. I had my stop at $32 even ($460 risk). At that moment I saw oil make its breakout. I went to sell UVXY at market which was about 32.13 at that moment, instead of locking in my 200 loss. I accidentally bought 2000 more shares. I was then stopped out of the 2000 shares that had my stop at got filled at 31.87. By the time I could click market sell on the extra 2000 shares I didn't want to have I was filled at 31.67. For a $720 loss on the first set and a $920 loss on the second 2000 shares for a loss of $1640. That was a very costly mistake (first time I have ever made that mistake).
Mistakes happen you have to move past them. As I have posted oil was overdue for a bounce here off the mid 40's and the market was giving us that. I grabbed 1000 shares of erx and 5000 shares of UWTI as oil bounce. Set my stops and was ready to hang on for the ride.
Well that takes me to mistake #2 also another mistake I have NEVER made before. Instead of buying 5000 shares of UWTI. I added a zero, I had picked up 50000 shares a 160k position size. I immediately sold market instead of $500 risk on the trade it was $5000 (more than my max loss allowed on a day). I was filled at my buy and made $44. I was lucky to avoid a big hit on that fat finger trade. Uwti proceeded jump up 6 cents in the next 30 seconds so I was unable to replace my 5000 share position (which would have ended up +20 cents or 2000 dollars). I missed the move because of that. Thankfully I had my ERX shares which I sold for $1.80 a share profit and made $1800 on that trade.
Today should have been a 4k+ profit day, but with the 2 miss clicks I am lucky to have any profit at all.