PocketPAT

Small stop out on an FTI short this morning. Very excited to have shorted for the first time at ETrade =) . My main focus is building a set of rules. I know that it's not an exact science, but it can typically be pretty close. Though the market was red all day, it was predictably bouncing from support. Understanding that almost all stocks follow the market, it could have signaled a long direction to me. But it's complicated, because there have been market opens at SPY support just like today; where stocks like FTI bounced and then fell further. Perfect example is the dump on 03/09, where the SPY rallied from support at market open, but FTI dumped all day after the failed bounce. Perhaps the FED injecting 1.5 trillion this morning made the difference? I'd also considered that, if a ticker is down 20% at premarket, how much further can you expect it to fall? This was overridden by the fact that FTI among others still had the best setups for further downside. I could have easily reversed my direction after the resistance break and taken the full run til 12pm, but...... I decided to observe for the future. Best to only take trades that you've planned ahead of time. This brings me to another thought that I'd considered: maybe I shouldn't enter my first short order at the failed bounce, but instead wait for the failed bounce's support break; where I would normally be entering my 2nd of three size-in orders. I'd be sacrificing maybe 5-10 cents of potential profit, but it would essentially put me in a better position to confirm that the setup is going in my direction. I'll test this method and see how it turns out. Had I went long on the FTI, I coulda woulda shoulda made $405 today. The key to me is figuring out and reinforcing the WHY on price-action. If you can figure out the why, you can see it all coming =)

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