As I scanned my watchlist before my flight going to Singapore, I found a potential stock that I may do EOD trading on. This stock was good a good candidate since it met my volatility requirements for me to just look at it during closing. Monday went by I didn’t expect for it to rally that that fast, Tuesday came, I was out from morning til’ 5pm then I saw LR’s candle; it went crazy, from 7.23php down to 6.10php then at closing it went back to 7php levels. I sold at open next day.
These are some of the pros and cons of EOD trading, you only spend a few minutes checking the market, one may avoid frequent whipsaws if they perform purely EOD trades however, you may not exactly get your precise buy/sell zones & slippages will happen. Also, you need to integrate, balance all of those variables on your plan, and really accept those risks for you to have the right mindset to execute the trade.
During my vacation last week, I accepted that I may miss a few plays; As I checked social media, lo and behold, there were plenty that popped up and the plays were extremely profitable. I would be lying if I said a bit of FOMO didn’t kick in but in these times, I’m aware that “the market offers infinite opportunities, it’s up to us to recognize and react when it presents itself” and that thinking guides me so my emotions are in check and I stay grounded.
After vacation and upon getting back to my desk I went back to my usual routine and found several potential trades had to cut loss/free trade on 2 issues (MHC & a re-entry on LR) then one trade idea came about when I saw how the price action moved yesterday, I planned for trigger levels and waited. Then it showed signs of bullishness today and I took the trade.
When FOMO kicks in, remember whether it’s a bull or bear season, there will be plenty of opportunities in the market, all you have to do is patiently wait for your preferred set up then pull the trigger!
Holy week is upon us, have you switched modes from offensive to defensive this season?
Til’ next week traders. Goodluck!