My performance discrepancy between the first half and the now back half of this week reflects my mood swings. I average 5 trades daily, and make about 1200 trades per year. Today and yesterday combined I initiated 4 trades. Not to mention I obsessed over one OIH trade. I must have thought that one through for several hours. A creeping worry swept over my overall portfolio, second guessing, wondering what could go wrong. A strong dose of pessimism-which was the exact antithesis to Monday and Tuesday.
I am a moody person. Am somewhat aware of this, usually in retrospect. It is so tempting to get caught up in the moment, to lose perspective. Today, for example, I can not shake a malaise, a feeling of flatness. It affects my entire outlook, and that definitely correlates to my trading results.
Within an hour after the opening bell I knew I just didn't have it. Good awareness=in this case=defensive trading. Really picking my spots. It was too easy to talk myself out of putting on risk-so I didn't.
The markets reversed, which is the new norm. But there is listlessness to it. There are pockets of momentum stocks, which the past two days have acquired a type of bi-polar disorder. Two of my favorites, by that I mean ones I feel comfortable with the stock story, SINA and MCP, traded strongly higher. Reversing yesterdays reversal. Shorts beware - or at least be quick to take profits. FOR NOW.
Finished the day long 5 MCP June Calls. Got filled by an impatient amateur who hit me on the bid after putting out an offer 10 cents above what was a 40 cent wide spread. Telltale signs of his status-he hit me with less than 30 seconds to go. Just wanted out I suppose. I love trading less frequently purchased options, nice big spreads to buy and sell into.
Looking to flip this into strong Friday momentum. Plan on being out before the first hour. Caveat Emptor, man plans and God laughs.
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