Today I maximized my weaknesses.\u00a0 I found the set up that is a trading weakness for my system, traded it with size, and now sit with a P&L that represents the worst of my trading.\u00a0 In one sense this is quite impressive.\u00a0 I did not just underperform this open.\u00a0 I did as poorly as I possible could.<\/p>\n
<\/p>\n
Fresh news hit that BP is close to sealing their oil leak and it gapped up on the open.\u00a0 A bullish flag pattern was forming at 45.\u00a0 Before the open I thought:<\/p>\n
a) If it trades cleanly and strongly then I will get aggressive.<\/p>\n
b) If it shows me it will tick at every price I will move on or trade with very small size.<\/p>\n
What pattern did I get?\u00a0 Pattern B.\u00a0 How did I trade it?\u00a0 Aggressively of course.\u00a0 I journaled, “BP is a piece of shit, dog shit, nonsensical, reversing, touch every price, garbage, idiotic trading stock.\u00a0 TRADE STOCKS THAT ARE CLEAN YOU JACKASS!”<\/p>\n
I prefer stocks that are trending, In Play, and showing me weakness on the tape.\u00a0 Stocks that reverse and touch every price breed a day of frustration and losses.\u00a0 Stocks like BP today.<\/p>\n
I should have started a position in BP at 44.80 and just held it for an intraday, all day trend play, or moved on.\u00a0 Instead I loaded up on the break above 45.25 only to watch this move fail.\u00a0 I did it again only to watch the next pass fail.\u00a0 I did it again, same result.\u00a0 I did it again, watched BP trade higher to 44.57.\u00a0 Victory?\u00a0 No I got stopped out below 44.15.\u00a0 Awesome!<\/p>\n
MON was the type of stock I should have traded.\u00a0 Weak.\u00a0 Trending.\u00a0 Not lifting 49.\u00a0 Dropping out.\u00a0 Losing in this stock would have been acceptable.\u00a0 Losing in BP was the worst of my trading.\u00a0 It was me maximizing my weaknesses.<\/p>\n","protected":false},"excerpt":{"rendered":"