Day Trading Post #34

What a start to a nice day in the markets... I got my ass kicked by SKF. I decided today that I would see if there was a trade in SKF since it came down into my price range and I got burned badly on it! I have never traded it before and as a result, I don't have a great feel for it. Unfortunately I also broke my rule now looking back at the trade I took in it! The 15 minute chart showed the stochastics turning over towards the downside, and what did I do? I took it long ( originally I took it short but I got out because I thought it was going long.) When I was long, I was up a point on it pretty fast, but as quickly as it went up, it came right back down. Too bad I didnt hold it short because if I did, I'd be up over 3 points, but nope... instead I am down $2.80 per share for a whopping -$280. Interestingly enough, my rule still stands true for risking 1.5x the ATR. I got stopped out for $280, and some might think that that is a big hit to take but when considering that SKF used to be over $200 bucks and has moved 45 points in a day in the past, $2.80 really isnt that much. Regardless, the ATR on the 15m chart which is what I was trading off of was $1.84 making my stop $2.74 below my entry. I got stopped out, and good thing I did because as of now, it's still trending down.

This only further teaches me that I should NEVER go against the stochastics on the 15m chart. The trend is your friend!!!! Chart of my trade is below:


My swing trades are looking great though!