Summary:
Paper trading on 50 share lots:
One out of plan trade - first long on NFLX. Again - a 'blind' heeding the 'indicator' (both MA's were blue and price crossing shorter) so I went long assuming the corrective wave would be the start of a new trend and save the day. Heh.
This is what I was afraid of - a silly reliance on a trade signal without taking the entire picture into account. Anyone could of looked at the chart and seen NFLX was headed down for the day. The fact that I realized this though later in the day was enlightening and a step forward.
Morning had all the action and I managed to sit on my hands for most of the rest of the day. I missed two entries on AAPL, the first at 10:00 due to some technical glitches. I was out early on CREE's big move, but within plan so no worries.
With respect to allowing myself to continue to grow my expertise in trading concepts (price and wave action for now) and yet refrain from bouncing from new trading plan to new trading plan, I have realized that this plan will allow me to bring new ideas into the entry/exit decision making process - I can trade within the MA context but bring and allow new ideas/expertise to be a factor as well; in fact, perhaps an even more important factor than the 'indicator'. The long on NFLX is a great example.
Truth be told - whenever I pull up a 5-minute chart, my first reaction is almost always 'Wow, this is beautiful. And simple.' Do I miss them? Funky.
Happy turkey day!
Trade well.
Details:
Nearly all the wave action was drawn live today. Yellow is dominant trend (with blue-ish being wave 1) and the red-ish lines are the corrective patterns.AAPL
Late EOD action. Should of known everyone would leave early for the holiday.
AMZN
CREE
Early exit, but in plan.
NFLX
OPEN
I didn't trade OPEN, I could of had the continuation but I don't think I was paying much attention at the time. Pretty wave action.
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