The market took a big bite out of me this week just as when I am not giving it its fullest attention. I took a short-side trade in Manulife Financial (MFC.TO) last Thursday simply because of a price pattern. I did not seek to confirm my hypothesis with short-term price action and intermarket analysis like I usually would because I've been so consumed with setting up my trading system on the cloud. I became careless because of my recent win streak and my involvement in so many matters. I lost my focus. My short in Manulife Financial (MFC.TO) is deep in red as of this writing. The market gapped above my stop loss price over the weekend and never eased back for me to exit at my stop as planned. I've placed in a limit order to target a retracement to \$14.50 because there's not much left to recuperate if I dump my position now. MFC.TO is well above \$15, so I am prepared for the worst. Judging by the volume, this looks like a valid breakout too. At least my put options don't expire until January. If my puts expire, this will be a loss of \$372 + \$9.90 commission = \$381.90 = 3.9% of my RRSP account. To put this into perspective, according to my trade log, this may become my biggest single loss in a trade in this account. Three folds greater than my previous biggest loser at 1.23%. Ouch!
[caption id="" align="aligncenter" width="570" caption="Manulife Financial (MFC.TO)"][/caption] Manulife is only half of my blunder this week. The real killer is in Ventana Gold (VEN.TO). As you may recall, I have been very bullish on VEN.TO. In fact, I've been stalking this gem for months by nibbling on small bullish positions to test the water now and then. Just as when I dug myself into a hole because of this extended loss, VEN.TO launched off on a rocket (Fig. 2). I am just staring at its takeoff outside the fence without the ability to take a position because of my self-regulated risk exposure limit. There goes a few weeks of research and analysis out the window. Double ouch! [caption id="" align="aligncenter" width="570" caption="Ventana Gold (VEN.TO)"]1[/caption] As bad as my trading can be, at least I am adament with my risk management and traded within my limits. A 3.9% loss in a trade is horrible, but it's not catastrophic. I will survive this one, redo my research, regain my focus, and be able to fight on another day. This is what trading is about.