Review of my day trading performance for the 1st week of August, 2020!

 

I managed to get off to a decent start to August despite hitting max daily loss twice this week as shown below (my daily loss stop is set at $100 with my broker). 

So for the week overall, I wound up grossing $154.72 but netting $134.12 after commissions and fees. 

As shown above, I took a total of 9 trades for the week; only 3 of which turned out to be winners and the other 6 losers for a 33.3% hit rate. In spite of this seemingly underwhelming hit rate, I wound up making money for the week due to my winners being just about 3x the size of my average loser! After struggling in July; I made the decision near the end of July to start aiming for 3:1 on my trades instead of 2:1 like I was doing prior and it is paying dividends so far. 

Although I managed to make money this week, there are still improvements that I need to make that I believe will result in even greater profitability for me going forward. 

Firstly, I'm still taking trades off non play book set-ups. This week I took a total of three non-play book set-ups all three of which turned out to be losers. So that's around 3R or roughly $150 more in profits that I theoretically should have made for the week. 

Secondly, I need to be a bit more conservative with my position sizing, especially on higher priced stocks ($70+). I've been a bit guilty of over sizing due to focusing too much on the profit potential of the trade versus being able to get a wider, smarter stop and reducing the odds of getting wicked by the "normal" intra-day price movement of the stock. This happened to me in $FSLY on Thursday.

Third and finally, I've been a bit too eager to add to trades before getting a valid signal to add to trades. This has resulted in me getting stopped out of some perfectly good trades due to greed. So going forward I'm going to try to be more patient and disciplined with adding to winning trades.  

I'm keenly looking forward to next week and making the adjustments/improvements I mentioned above. Best of luck to all and thanks for reading...CHEERS!