trading on intuition and support, an experiment

I bought Chk after it fell back to 5.60 from 5.90 because “I knew deep down” that it would go up from here.

I also bought Lgnd on a tag of the 200 Dma. Let’s see if these pay off


Notes on myself and my habits 

Recently, I’ve had a lull in my trading research and enthusiasm. I’ve been putting off and even avoiding looking at watchlists and curating them on a regular basis. I’ve also stopped reading transcripts. 

We’ll talk about the causes later but the result is me having less conviction in my trades, not being in position to take advantage of breakouts and pps, and perhaps breaking out of my rules of trading which are paramount to the o’neilian method (although I should observe what I’m doing, I think I’m buying stocks that have pp’s after they retrace, but maybe not).

The reason I’m not reading transcripts and market news is because I am getting mentally fatigued of reading so much. Is this because I’m fatigued or for outside reasons? Is there a better way t go about this?

I think I am also losing enthusiasm because I still have not gained ground on my account. I am doing something wrong. The feedback system of the market is telling me something very clear: that what I am doing is not working.

What is it that I’m doing and importantly, what am I not doing?

Thing is, I’m very good at building my position back even or just above even; I am also very good at letting it fall back to under even. My method for getting back to even from loss was buying bases and breakouts in unextended stocks (such as those just coming from bases and not at channel tops) and usually with 100% long. I usually come back to below break even by adding 200% long at the wrong time, when the stocks I’m in start going down (when those stocks I’m in or the market itself pull back due to overextension). 

So I’m basically going 100% long at the right times to recover, and 200% long at the exact wrong times.

What if instead of adding 200% long at the extended time, I take profits off the table instead. Then I PATIENTLY wait for the most opportune time and I go long again with 100-200%. The market has been choppy (especially in commodity markets, which is what I’m mostly in) even in the midst of this huge rally.