Daily Review

the morning move was very impressive from the morning gap up. I had a sense that this could be a trend day by the fact that the market failed to reverse by 10am, strong $tick during consolidation, and the fact that some funds are playing catch up to the market above 200dma. I was ready to buy into weakness.

Impressive as it was, I failed to capture the morning move as I was distracted at work & all the while trying to take profit from GNW swing.

The majority of the rest of day was very choppy and boring. I got on the UNG train when it popped from consolidation. I knew from past experience that I sucked at trading commodities, so I thought it was perfect opportunity to add to my swing trade/long term account. As UNG moved strongly, I started pilling off 2/3 of my UNG position (planning to add later on weakness).

I stayed away while the market was churning/directionless and I mainly monitored/stalked on potential turnarounds in financials by circling around ms, bac, wfc, usb, gs. the reason being the financial leaders: MS and GS were particularly weak the whole day while the market (spy) stayed strong. By 2pm xlf showned signs of weakness by taking out its 50ma (on 5min) and vwap with heavy volume and price crashed swiftly. I jumped on the wagon by shorting BAC. The entry was perfect, however i had pressed the wrong button and unknowingly covered the whole position immediately (I had only planned to cover 1/3 upon immediate move). Unknowingly, I kept buying back to cover a non-existent short position, and that made the BAC position a net long. By the time i figured out, I sold everything immediately but was too late to save the profits from the initial short. While I tried to recover from the BAC trade, I shorted WFC on a bounce. That however was only good for a scalp.

I felt much better mentally than 2 weeks ago, I wasn't afraid to use bigger size and had more conviction entering positions. I guess it's all a process, a process of accepting your own emotions by acknowledging why you are feeling a certain way and finding ways to work with your emotions (I got this new perspective from a very thoughtful trader: Taotrader from twitter). After having thought about his perspective, this came up to me: Emotions in trading isn't all bad. When you feel uncertain, it tells you that you need to adjust your size and slow down in trading. When you feel confident about a setup, it means you need to be more aggressive with bigger size and take more profits out of this confident setup. The kinds of emotion you have have alot to do with your experience. The more experience you have, the more setups you've been through, the more market storms you've witnessed, the more certain you'd know what to do under uncertain/confident situations. I still lack the experience. Acknowledging this is the first step toward improvement.

I can't wait for tomorrow.