Trades for September 3rd, 2015

Trades for September 3rd, 2015

Today was a small red day for me after 2 actual trades. But I am very happy with my trading today so it is a win in my book. Why is that? Because I traded exactly how I want to.

I traded GERN after the open after it had a run up to 4 in premarket and then pulled back to the 3.60 area coming into the open. After the open it had a little rip and reject the 3.67 level, I think, and pulled back. I started a short 2 or 3 candles after the rejection which I think was a mistake/chase. My first mistake is chasing this down. It found a bottom and began a bounce so I covered up. Covering up I had to adjust my order and accidentally longed it which actually brought me back to even after the loss on the short. 

After the bounce, it rejected the 3.67 level again! I was excited seeing this because I had a set risk and a solid risk/reward set up. I got short after it and was in the green decent coming down. It then started to move back up and I got scared that I would lose my green and I chased the cover up which is just ridiculous. I then covered it up and actually was small red. Almost immediately after my cover it started to move down and faded all day.

Looking back at this, I realized that I just got stuffed. I got stuffed into chasing the cover on my short and actually lost out on those profits. This is a problem I have had lately. The reason this is a problem is because I'm having trouble with my entries. I don't know if I should wait for a pop to short or to just start right after a rejection of a level. I dont want to start after a rejection because I dont want it to just ramp back but I also dont want to wait for a pop because I dont want to miss the move if it goes straight down. 

I think I am better off shorting pops while I am still in account building mode and not money making mode. The reason being that I should worry about catching the whole move and like Nate always says, I should go for the base hits. Then when I have enough base hits on my record, I can go for home runs. Also, when shorting pops I also have more of a confirmation of a move and can be more confident in letting my positions work. 

Today was red one but learned a lot and ready for tomorrow. On to the next one. 

Jay