I had only the last 30 minutes to look in on the markets and saw some scalping opportunities as the EOD volatility ramped up. The thought with these two trades, as is often the case with my efforts, was Mean Regression Scalping; the EMA (7) representing the mean.
I was rusty and found it hard to track the movement. My common faux pas, fading trends in anticipation of reversal, was my enemy on this first effort, requiring me to make the decision to either stop out or scale in for better average price. I chose the latter and it worked to my advantage though I was out FAR too soon to capitalize on the enhanced risk I took by not stopping the trade out.
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Late last year, I switched my practice trade entry size to 25% of what I had been using as a standard, going from 1000 shares to the present 250 shares. Last week, I also reduced the size of my practice account to $75,000. This is going to be a severely limiting factor in my ability to average for better pricing. I am in hopes that my willingness to do so follows my reduced ability to do so. I am attacking this problem from every angle.
