Quick review of the 4 stocks I was monitoring this AM off the gap list. Solid morning, yesterday's 2 trading losses weighed on me as your only as good as your last trade, and was up ready to focus on solid plays today. 2 solid trades and a screw up. - solid week.
- BABA: 5 minute low was in play - didn't take as was in MSCC
- FL: broke down through support and pulled back to make a Bear flag - entered on candle 3 for a winner
- MSCC: took pre-market low for a winner
- JD: My notes said under 41 - and got JD and FL mixed up as the symbols and price look a like! I took a trade at candle 3 around 42 with the strong close below vwap. If you look at the Daily chart the 200ema is sitting there above 41.Took the loss on the trade. 20% of the losses I occur are human error - goal is to get this down to single digits.
Stock Trading Plan: http://www.howidaytrade.com/stock-day-trading-plan.html
E-Mini Trading Plan: http://www.howidaytrade.com/e-mini-trading-plan.html
* You don't have to trade everyday. If the conditions don't feel right or if you're unsure of the current days trading environment then PASS on the trade. Missed money is better than lost money. Day trading and the stock market is not a "war" that you must win at all cost. Trading should be fun, wait for only the good setups. Follow your rules, stick to your stops, and know that everyday the market presents a new chess board.