RamtaJogi— Hacking Life for Money and Fame.

As I posted yesterday, I was watching IMMR and DYN. I ignored IMMR because it was moving extremely slowly whereas DYN was running like there is no tomorrow.

DYN moved up in first 15 minutes and started tracking down. I was thinking about shorting it at 3.99$ (just below even 4$). But after the series of losses I had, I was thinking may be it will touch 3.99 and move back. I decided to wait some more and setup an 1st Trigger OCO order in TOS to short 200 shares at 3.93$. With profit target of 3.10$ (3$ was previous support)  and loss target of 4.21$.

DYN Short Play for Oct 14th

Within few seconds, I heard the sound of order getting filled. I was excited, first short of my trading career! And before I could look at the chart, I heard another sound of order getting filled. My heart sank, did DYN jumped to 4.21? No, it did not. DYN touched neither 4.21 or 3.10. And still my position was closed out. It was closed at 3.93$. I was confused.

I immediately decided to chat with someone at Trade Desk and asked the support person why my position was closed. He explained that I setup the order wrong. I should have setup up my profit target order as STOP order and my loss target order as LIMIT order. When I set up my 4.21$ BUY order, it was a LIMIT order, it means TOS will try to execute my order at price of 4.21$ or better. DYN, trading at 3.93, was better price than 4.21 and TOS closed my position moments after I shorted it. Dumb, Dumb, Dumb.

Dumb. Dumb. Dumb. © Laughing Squid

I forgot to realize that I have to reverse my parameters for OCO order if I am short vs long. Well, that’s 10$ loss in commission but more importantly missing a perfect setup. Also, I ran out of my day trades. And even though I was very confident that DYN will keep sliding (it hit LOD of 3.06 closing at 3.3), I did not short it again. I have promised myself that I will not try to chase an opportunity and I will not enter a trade if I don’t have day trades left. Discipline is a MUST. BTW, Steve was also following DYN and he executed this trade like a pro. Bravo!

So what’s next?

I need to be perfect at my order entry. This is the 3rd time when I goofed up my order entry. Trading is hard as it is, I can not make it more difficult. To fix this problem, I am not going to trade until I learn to enter order perfectly, each and every time. For rest of this week, I will do Paper Trading (I don’t have any day trades left anyway) and perfect my order entries.

Happy Trading!

RJ.