I want to share a live video from today’s trading session which I think has some great lessons.
Lessons you will get from this video:
- Momentum precedes price
- Volume precedes price
- Always seek trades that can yield asymmetrical risk to reward
- The importance of using strategic trailing stops to manage the volatility of your PnL
- Took 3 trades today.
- 1 small loss on the XIV for -1R
- 1 small win on the UGLD for +1R
- and 1 MONSTER win on GDXJ for +9R
Personal comments on the day:
Overall I’m pleased with my performance for 2 reasons –
- It’s easy to let a loss distract you or pollute your trading process, however I used the first loss in XIV to re-evaluate the market and found opportunities in gold stocks
- Even though I got stopped out on UGLD on a low tick I remained persistent, maintained my focus and found another way to express the gold trade on GDXJ which turned into my best trade year to date.
Areas for improvement –
- Even though I had my best trade of the year there are still areas to improve.
- The upside volatility in GDXJ caught me a little off guard and I fumbled with my exit
- There’s an opportunity here to improve my order entry especially under a crunch
- I had an opportunity to get out of XIV at a better price but instead took the full -1R loss
Apologies for the long video – fast forward to [19:20] if you want to see and hear me lose my cool as the move begins to go parabolic in my favor and I end up fumbling my exit on the GDXJ trade. 🙂
Let me know if you have any questions and feel free to peruse my YouTube Channel where I’ve been posting more live trading and recap videos.