Day Trading Report Feb 22, 2008: -$690

Horrible day yesterday! I took Will Rahal’s prediction of a positive market for the day a little too much to heart and kept entering longs even though the market was diving. I was also thinking that the price would bounce back to the pivot and S1 after breaking it.

I should have noted that the ADX was at 50 and at least wait for a trading range if I were to enter a long. Because with such dramatic drop, the price wouldn’t turn on a dime. But even better, I could have entered a short on the initial break below the pivot.

Lessons for the day:

1. Realize that I’m wrong sooner rather than later
2. Switch from ER2 to YM after a few losing streak for a smaller position size
3. Don’t have any pre-conceived notion of where the market will head! (not the first time this has cost me)

I’m just $60 away from my equity limit to exit from day trading. Although I have learned a lot, I still can’t produce result consistently. Next week will be a vital test for my near term day trading career.

Related posts:

1. Day trading report Jan 30, 2008: -$560
2. Day trading report Feb 11, 2008: No Trade
3. Trading Report Feb 12 – 21, 2008: +$146
4. Day trading report Jan 29, 2008: +$130
5. Day trading report Jan 31, 2008: +$590