Today I made a mistake getting out of an good trade to soon. Letting the lack of movement in my direction from market and internals to justify the reason I got out…when in reality there was no reason to exit the trade.Now I must say, not having the markets and the internal at your back makes reading and determining follow through of your trades difficult. But for planned “A”(great) trades you have to let the scenario play out (and if that means taking a loss, so be it).
Today LVS did every thing a trade would want to see in a strong stock. Opening up above Fridays high and continue to trade higher as the markets were pushing lower. The trade scenario did not call for a trader to get out of the trade until it broke the opening lows and close back into Fridays trading range.
I enter and exited within the circled area of the chart below, as you can clearly see I missed out on the initial momentum move higher by exiting the trade pre-maturely. I did re-enter the trade as in continued to move higher but the mind set and management of the trade is much different when you already have your first piece of the trade on for the initial momentum move (adding or riding momentum to profit target) then trying to initiate the position after the move has happened.
