12/20/16 Recap – Back to disciplined trading

+$657 today on CNAT, but up +$2500 the past 3 days after strategy adjustments!

My play of the day today was CNAT.  I sat on my hand right at the open because I honestly had no clue which way it could go.  It was moving so fast.  Also, I did not feel there was a good stop loss point yet to base my trade on (a key aspect of my trading strategy adjustments) It then looked to stuff $5.25, which was a key area pre-market. Because of that stuff, I decided to short on the rebound as you will see in the chart below.  I went in with 5.25 as my risk.  It broke that HOD and I cut my losses.  Even though that first traded ended with a $600 loss, I am very proud of my execution on the trade.  I followed my strategy adjustments to a “T.”  I did not add when it started to rebound further, I had a clear trading plan, and I followed my trading plan by cutting my losses.

I went in again this time with a set risk on $6.  I entered right when it looked to be stuffing $5.50, and sure enough it did stuff that price.  I was quick and got a top tick entry on my re-short!  I added on what I felt was the stuff confirmation on the next candle and moved my risk down to $5.50.  I decided not to add again on the small rebound before the big crack because I did not want to lower my average more and panic out of the trade since it might just hold VWAP at this point.  I felt that my $ risk would be too big if I added again.  I started to cover the trade into the pull, closing the trade making back the $600 loss and up to $657!

Over the past 3 days, since I made my trading strategy adjustments, I am up $2500.  I am pleased that I am getting back to trading with discipline and seeing some nice profits as a result.  The doubles and singles have added up.

I am leaving today for my wife’s grandmothers funeral that is in Utah this week so I am done trading for the day.  I am bringing my travel trading set up with me and hope to try it out for the first time while on the road.


4 thoughts on “12/20/16 Recap – Back to disciplined trading”

  1. Sick entry bro. I have a similar trading style. Did you perfect determining the point of inflection (the top of the “stuff”) by just trial and error? It becomes more of an art than science am I right about that? Awesome blog by the way, looking forward to read more and best of luck trading.

    1. Thanks! Not sure if I have perfected it yet, but working on it! 😉 I agree with you that it is partly an art or feel that comes over time seeing the stuff moves on level 2, time and sales, and the chart.

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