Just wanted to share a thought. Tried a couple of day trades today (in my personal test account) and was fooled by the market. Here’s what I did wrong and right:
Against my overall thesis of a market that is reversing every time it hits the bottom and top of the recent range it bounces the way, I tried to short a continuation of the AM fall. Then I tried too quickly to buy a reversal. I got pinched out on both sides with small losses (low tolerance for loss on day trades).
After that, I didn’t want to compound mistakes, thinking that my feel was off this morning and maybe I would let those 2 bad moves bother me, I just stopped – a correct move in my opinion. Interestingly, individual stocks look better to trade than indices – I tried an index while a couple of stocks I follow made nice moves.
Overall, a learning experience. And interestingly, the other part of my overall thesis, to buy cheap yield, showed good results in this morning’s weak market. Each strong negative day continues to prove out that thesis.