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I learned a painful lesson today, which I like to share with everyone here. I have been following X and MOS for a few days. I knew MOS would have a volatile day today since it just released its quarterly earnings, which is not bad, but not stellar either. So I decided that MOS was good for day trading. And I was not sure about whether I should day trade or Swing trade X. This hesitation bugged me all day long. And it finally took a toll on my performance . Here is how it went.

X gaped up without heavy volume, I knew it was not sustainable . So I faded the gap-up @40.85 right after the market open. It quickly tanked to 38.36. It was a solid big move(6%) by any day trading standard. Looking at the profit(600$), I started to think about swing trading it for a much bigger profit. At the same time I was looking at MOS for a day trading entry. So it kind of messed up my thought process.

I decided to ride the winner(X). And it started to reverse before 2 PM. As it climbed higher and higher and my profit dropped lower and lower, I started to panic. I covered it right before it went down again. And I did not have the courage to re-enter a short position any more.

If I had day traded it. I would have at least booked some of the profit. Let’s say half of it.

If I had swing traded it. I would still have my short position in X which closed at 40.05.

I day traded MOS. It was not too bad. I shorted the first dead cat bounce for a quick solid drop. I took the profit without hesitation. I shorted it again around the noon and it went belly up. But that was a small loser compared to the winner I had earlier in MOS. So I traded MOS Well today.

Here is My Portfolio