I made one day trade today in $TNK and lost only about $20.00 including commissions. After this trade, I realized that I have strayed away from my core strategy which is swing trading! The bulk of the trades I have made since starting back have been day trades. Even if I did have an edge day trading there is no way I could get that edge to play out successfully with only 3 day trades/week! Those day trades should only be used when: 1) I have to cut a swing position the same day initiated because it hit my stop out point or 2) a swing position I have initiated hit my profit target that same day (e.g. $VDSI today which exploded over 16% from the recommended buy point in last night's watch list).
So that most days, I should have at least 1 or 2 day trades available. However, for some odd reason I have gotten caught up in the hype of day trading and have developed some weird fear of hold over night that was never there before.So after the first couple days of the week, I often find myself having to skip trading because I have used up all my day trades for the week and cannot risk putting on a position because if it hit my stop loss the same day I would trigger a margin call or have to risk holding over night for a bigger than intended loss.
I have come to the conclusion that I need to focus on the picks from my nightly watch list and focus on those solely. Over 90% of my trades should come from this source as I had planned to initially. The other 10% or so should come from new break outs only when I see an absolutely compelling set up with all the variables aligning for a gap and spike the next day. Honestly,. this does not happen often!
From tomorrow I should be over $2,000.00 and therefore back on margin, able to short and able to re-use funds intra day. Some big constraints off my back...wheewww!!! Since I have no day trades available, I plan to do no trading tomorrow but I will call out set ups as I see them on twitter as usual.
I'm gonna get back to my core competency and make some big profits!!!
Good luck with your own trading!