This has been a challenging week for most I would guess – including myself. Monday starts out with a bang – so why is that bad? Isn’t that what we want, setups working & all the stocks we are long going up? My experience this year has been that many setups are off to races in pre-market action and thus I do not get a chance to get a good entry. This reality has forced me to adjust my strategy and become a LOT more opportunistic intraday for any day or swing trades that I want to enter.
The new Monday “challenge” is being able to utilize the setups that you work so hard to find prior to the open (and mostly during the weekend scan efforts). Then a day like today comes along and the market goes South like a runaway freight train. Now what?
I found myself once again abandoning the setups that I had planned on working today – to looking for stocks in pre-market that were getting attention. Most of these opportunistic trades come from 3 watch lists that I regularly keep – stocks that I trade often and feel that I know well. I keep them seperated by industry/sectors so that it is easier to keep track.
One thing that this approach forces me to do is keep a clear idea in mind on what I am trying to accomplish – the “it is just a trade” mindset.