With elevated volatility throughout the month on March I choose to take as little trades as possible and only take small bites here and there. I only initiated 11 trades this month, the majority losers. To be honest, I am pretty disappointed with my performance despite the great opportunities. I will forgive myself however since this is my first real bear market I am experiencing and the loses I look this month was very small due to the limited amount of trades I put on. The fact that I am actively charting and analyzing this important time is a win enough for me.
The main issue with my trading this month was letting go of winners too quickly and being inconsistent with risk. In the middle of the month, I had shorted TSLA at 633 (half size) and ROKU at 102.50. I placed my stop losses too tight and I ended up letting go of TSLA at 590.20 before the drop to 350 and ROKU at 101.50 before the drop to 60. During times of high volatility, you have to expect larger swings and whipsaws. I had recognized this early but did not act on this notion. Secondly, I found that a lot of my winning trades this month ended up being the ones that I took half size with the excuse of "controlling risk due to high volatility". If this were the case, I should be using half size for all my trades. Being inconsistent with risk can skew your actual performance.
For the month of April, my goal is to apply the lessons learned in March by simply being consistent with risk and putting smart stops based on the level of volatility. Since volatility is currently high, I want to allow a larger stop loss. Furthermore, like last month, right now is not the best conditions for swing trading therefore I will continuing taking very small bites here and there until market conditions improve and volatility levels out.
The main issue with my trading this month was letting go of winners too quickly and being inconsistent with risk. In the middle of the month, I had shorted TSLA at 633 (half size) and ROKU at 102.50. I placed my stop losses too tight and I ended up letting go of TSLA at 590.20 before the drop to 350 and ROKU at 101.50 before the drop to 60. During times of high volatility, you have to expect larger swings and whipsaws. I had recognized this early but did not act on this notion. Secondly, I found that a lot of my winning trades this month ended up being the ones that I took half size with the excuse of "controlling risk due to high volatility". If this were the case, I should be using half size for all my trades. Being inconsistent with risk can skew your actual performance.
For the month of April, my goal is to apply the lessons learned in March by simply being consistent with risk and putting smart stops based on the level of volatility. Since volatility is currently high, I want to allow a larger stop loss. Furthermore, like last month, right now is not the best conditions for swing trading therefore I will continuing taking very small bites here and there until market conditions improve and volatility levels out.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.