After yesterday’s emotional roller coaster it is time to exit and make a considered re-entry. The market opens at 15.55 but it is down to 15.40 before I can get near an internet connection to sell. I place a sell order at 15.45 and go do some work. During that time the market recovers to 15.50 before it settles back to 15.40.
I’ll do some hard thinking but I will probably buy back at anything below 15.40 tomorrow.
Decided to try a day trade after the NCP market opened aggressively down to 15.27 then moved up smartly to 15.38. Placed a buy order in for 1700 at 15.33 and amended it up for price and quantity.
An hour later it’s down to 15.31 and looked bad. But it picked up and spent most of the afternoon at around 15.39 (breakeven).
Suddenly at 2:45 it moved fast to peak at 15.48 then falling straight back to 15.39. Then it did it again! Why didn’t I place a sell in at 15.45?
I’ve noticed NCP trades in a 0.20 range. Lesson #1 if I buy at 0.10 above the low then I should sell at 0.20 above the low for day trades.
Lesson #2 keep a clear exit strategy when I buy.
What a day! I went for a late lunch at 2:00pm happy that NCP was happily above 15.70. I came back at 3:30pm to discover it at 15.48 (choke!). Nearly 2% off high is a clear sell to me. I am beating myself up for not taking 3% at 15.74. But that’s why I’m keeping this diary.
Why? 2.5% fall from previous peak close of 15.675 on 28 Dec 01.
The stock went up then down to close at 15.209. Last trade was 15.22. I feel pretty foolish but I don’t try to pick tops or bottoms. There are three potential exit strategies: sell for +2.5% (15.66); or +3% (15.74); or sell after it closes down. Successful traders pick one.