The Day When Every Perfect Trade Was Not Played

Every now and then you have a day when you chicken out on pre-determined plays, just to see it work out perfectly as expected.

CECO was one such play that took a huge dump in the morning. I had listed it yesterday as a potential short play. I was dead right on it. However after dropping back to $22.00 it started rallying today. I was looking to day-trade it on its way up. Once CECO broke $24.00 i knew it would rally more, since a huge resistance was taken out. It actually hovered around $24.00 for a while providing good opportunity to go long and putting a stop loss around $23.90 if it failed. However due to its run-up from $22.00 to $24.00, i chickened out, just to see it continue its up-trend ending at $24.74.

ES spiked up on earnings. Big spike on earnings play is always a safer bet to go long, since shorts start covering and early shorts get squeezed. However i was not interested in going long for day-trade till 1.45pm when ES found strong support at $6.00. After hitting $6.00 twice it spiked well to $6.40 level before turning back to $6.00 again. This third try was a good time to go long putting stop loss on the break of $6.00 around $5.90 level. However i again chickened out thinking third time unlucky, just to see it give some good scalping cents.

MYL was another stock in my short radar. I posted about it yesterday. This one was a good good short on the breakdown of $13.00. Around 2.15pm MYL reversed hitting $13.00. It tried to break its twice, but couldnt. Eventually it cracked down again, dropping all the way to $12.40 level. I chickened out again as per my earlier plan thinking it would break $13.00.

Today was a day of missed opportunities with known resistance/support levels. Today was one such day…sigh***

Lesson learned is to play without emotions, follow the charts and play out pre-determined strategies, with decent stop losses and not to CHICKEN out !!!