09-27-2013 Trading Journal

Another down day for the market…

$TTWO opened lower and proceeded to tank rather quickly. Of course, I reduced my position size immediately to cut down my risk. It was almost an automatic response. “Cut your losses quickly!” was going thru my mind at the time.

$KNDI opened sightly lower and traded around the $8.4x and $8.5x level, I began to buy back some to scale my position back. Unfortunately, the price could not hold and began to trade lower. It triggered my stops and I was out of my swing trade position (shares I added today). Later, when price began to fall again after price bounced from the intra-day low, it triggered my stop to reduce 50% of my core position. I had these stops in place ’cause I didn’t want to give back too much of the profit I made the last two weeks. I’m expecting some kind of correction so I don’t mind reducing my position ’cause I know I can always buy them back, either at lower price or at a higher price.

$GALE was gaining ground all morning so I added a bit more; but the rally could not hold and price began to fall back to breakeven. I decided to hold the addition I bought today to see where it goes next Monday.

$AMRN was shooting up all morning so I sold my $SSYS to lock in profit (it was going south while $AMRN was heading north) and transferred the money to buy more $AMRN swing trade position. Unfortunately, like $GALE, price could not hold and an avalanche of selling created a waterfall action. Needless to say, I had to dump all my swing trade to reduce risk (both addition I bought plus swing trade from before).

$CERS was the only rally that could hold and I was impressed. Thus, I added more to bring my position size to become the 2nd largest position in my portfolio after $LRAD.

I also bought the $7.50 Feb 2014 $CERS call option because I believe the momentum of this stock would take off from here after breaking out of the $6 resistance.

After a strong week of upward momentum in my portfolio, I finally had a down day today. Considered the gain I had this week, today was definitely an acceptable drawdown.

Current holdings:

LRAD, CERS, AMRN, KNDI, GALE, TTWO and 36% cash.

Categories: Daily trading Journal

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