Obviously it has been some time since my last update – a month, in fact. Life happened, unfortunately.
A few positions were exited in that time (all my positions can be seen here). Most notably $TWTR, which was a larger than normal loss. Three reasons for this.
One, this particular position did not have a hard stop in place. The reason for that is because on rare occasions, usually swing trades, my stop won’t trigger unless the daily closing price is below it. Therefore, I can’t very well enter a hard stop. As my swing trades are based off the daily charts, and a lot of “noise” can happen during a trading session, it would be too easy to get taken out of a trade prematurely with a hard stop in place.
Two, I was not physically able to monitor things (the aforementioned Life thing). Everything else in my accounts cruised along on auto-pilot…which only demonstrates how superfluous I am to the trading process on a daily basis. Apparently I’ve managed to render myself obsolete…
And three, the obvious, and somewhat rude, gap-down after earnings.I’ll hold trend trades through “noise” events like earnings, but swing trades are a judgement call for me. If the trade is working well, and I have a bit of margin for safety, I’ll hold through. Doesn’t always work, and in this case, it didn’t.
Meh. It happens.While a 2% loss is clearly larger than my usual 0.5% allowable loss, it’s not account-devastating.
The other exits over the past 3 or 4 weeks were pretty boring in comparison.