Today was a lesson in patience and squandered opportunity while paper-trading the SKF. The greatest example of this was my multi-part position long in SKF; buy-ins were at 10:12, 10:22, 10:32, 10:32. This was a dollar-cost average to a price of $87.66 per share during the strong 21 minute, unbroken (3-min chart) drop in preparation for the reversal off this down move. This was the lesson in patience as my position was down significantly during this timeframe. But, I felt quite good about this play as the futures had been weak, the shorts have let up on SKF, and the big move down had to correct. Finally, with green showing in this position, I covered at 1:22 pm. At the time I clicked the mouse, I had about a 12 cent per share profit. When the transaction finished, I had actually lost 15 cents. I cut it too close, I guess... Now, the squandered opportunity: The run continued up short term to $88.26, what would have been a gain of roughly $2.40 cents per share. Had I held my position end of day, as I was prepared to do if the position hadn't come back to me, I would have cashed out a $ 9.36 per share gain. Oh well, that is all predicated on a perfect world scenario. At one point in the trade, I was down $8.00 per share but I can't figure out why I was unwilling to let it run with a gain more than 10 or 15 cents per share?! It's not something I was thinking about while the trade was on or at the point of sale. Looks like I have some mind-training to do on that! Add one more to the list.There were a number of other exits too soon which cost me gains, but all in all, I'll take my "green" for the day in SKF plus a nice 55 cent profit on my one trade short in GS at 12:14 pm. That was as perfect a set-up as I could ask for! Again, I didn't follow through for all the $ available but I don't mind on that one.
Staying on the topic of positives, I can say I managed my losers well today. I had some bad entries but stayed patient and averaged out of them or cut just them off quickly, (except one, my 10:00 am short).
I am also working on figuring out if I can use my entry signals as exit signs. I am a long way from my goals, but I'll continue the journey because I have just enough success to keep coming back. Am I a sucker or what? :-)
10 for 17, a 59% win rate. $1.07 per share gain on SKF & GS
