3/29/2017 Recap

+$4,049 today on TNXP.  This is my best single trade profit I have ever had, where I did not break any of my trading rules to achieve that profit!

Pre-Market TNXP was gaping up big time on an old PR.  I decided to start in small on the para to 8.50, leaving plenty of room to add since I was on the front side of the move.  I added on the 9.40 stuff and continued to add after that point with HOD as my risk.  I covered 1/4 into the first pull and then added that back on the next push and stuff.  I started to cover more in the low $8.00’s.  At this point, my average was now my risk.  I kept on covering on the offer into the pulls and was fully out in the $7.60.  I tried to get back in a few times after I was fully out but it never bounced high enough to where I had my orders sitting and I refuse to chase weakness on these types of plays.  I did finally get a small add on the retest of $7 and covered for a little more profit. This trade is exciting because I never had more than 4,000 shares at any one time so I kept my size in check, I did not break any of my trading rules, and it resulted in my biggest single profit trade with that criteria.  I have had bigger single trade profits, but I have always broken my trading rules to achieve those gains…not the way to do it!

Looking back on the trade there is something I wish I would have done better… trading around a core.  For some reason–maybe because I was excited about the profit that was quickly adding up I don’t know– I just started covering and was not more aggressive about adding into pops.  Once the big crack happened I should have held on to 1000 shares and added on each pop, keeping my risk set at my average, and covering into the pulls.  If I would have done that I could have easily made a few thousand more on this trade.  My next big “weak link” I want to work on is exactly that… trading around a core/adding to my winners.  I am so thrilled though to see the progress I have been making on discipline and consistency.  I feel that I am making great strides at overcoming my stubbornness.  I am starting to trust myself more to take losses at my stops which is improving my trading tremendously.

 

 

4 thoughts on “3/29/2017 Recap”

  1. Hi Aaron, I’m a new day trader and your blog is really helpful, thank you! Curious about what were the signals to short this stock, what let you know it wouldn’t consolidate and flag later into the day?

    1. I’m glad you find the blog helpful! Thanks for reading it. You never “truly” know if it will continue higher, but if it had that is ok. I had my trading plan in place and my risk set. If it would have continued higher I would have exited according to my plan. However, on this trade, the tape and level 2 were very weak after the initial parabolic at the open. It could hardly find a bid. The safer trade if your new would be too short after it cracked.

      1. Hi Aaron, the blog is really helpful indeed. Can you tell me how did you size in into the short? I see that after your first short the stock went ~70 cents up? How much were you down before it cracked into your favor? Thank you

        1. Honestly, I do not recall exactly however, I would not have been down more than $1K at any time as that is my cut off. And on this trade, I did not get stubborn and break any rules.

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