One of my favorite phrases on our prop desk at SMB Capital is: the day doesn’t end until 4. If you start negative then you have the rest of the day to make it back and then some. In this market there is so much opportunity it is a waste of energy and irresponsible to get down after a few losing trades on the Open. There is too much money to be made.
Just think about yesterday. You could have been firmly negative and then caught the explosion in the financials and the XLF (chart attached below). These days offer you the opportunity to mess up the Open and then still have a great day.
This AM I was promptly down $1500 trading WB. I got on the wrong side three straight times. Rip then Rip then Rip. I have to admit I wasn’t happy. But the guys around me were making chops. And they chirped out some nice levels in IBM, V, and CHK, which got me back in the game. I shorted IBM at 130 and it sold off 28c. Chop Bella! I shorted V in-front of the resistance at 75. Chop Bella! I bought CHK in front of 50 a few times and made a quick 35c and 50c (chart below). Chops Bella! I shorted CHK when it got below 50c. Chop Bella. I went from firmly negative to a solid Open by 11.
Just keep trading. You will get on the wrong side of trades. But keep making One Good Trade. The results will follow. The day doesn’t end until 4.