Monday's Sale Was Like a Roller

Monday's Sale Was Like a Roller Coaster: Loss Recovery And Swing Trading

On Monday morning, I lost 21 million won as my short position on Friday was forced to liquidate due to an unexpected surge. I followed the principle of mechanical withdrawal in case of a loss of 20 million won, but I couldn't hide my disappointment. I posted the loss certification on Facebook and decided to do so.

Judging that a downward trend was still likely, the company entered an additional short position, but it suffered an additional loss of KRW 2 million due to a rise in the post-stride position. Prior to the start of the main session, the total loss amounted to KRW 23 million.

When the market opened in earnest, the Nasdaq fell as strongly as expected, and I maintained my short position. However, because of the bitter experience in the morning, I only entered passive volume and cleared all positions when I recovered from the 23 million won loss. Since then, I have seen a strong rebound and turned to buy, earning 20 million won. At dawn, I secured an additional 4 million won in profits from a one-contract selling position, closing Monday's trading with a total of 24 million won in profits.

I ended up with a profit after overcoming a loss of 23 million won, but it was a regrettable day. It's because I aim for swing trading, but I'm repeating it due to frequent volume control failures. Swing trading is the way I want to watch the flow of days with small contracts. It's also a way to improve your quality of life, away from the way you're stuck in front of your monitor all day.

If we had kept the short position of two contracts or so on Friday, we could have kept our profits as high as we did today, holding them without having to do it again. The excess of nine contracts made us falter in even the smallest swings, eventually leading to frequent hand-offs and re-entry. The proceeds were also lower. That's something that needs to be improved.

Today's lesson:

The Importance of Trading Principles: While adhering to the principle of limiting losses was a good choice, excessive volumes lead to psychological instability.

Transition to swing trading: Small contracts require practice reading long-term flows.

Importance of volume control: proper volume management is essential for stable swing trading.

Building a Swing Trading Strategy: We will continue to practice looking at the market with small contracts, long breaths.

Improve Chart Analysis: It will develop the ability to analyze and predict markets from a long-term perspective.

Mind Control: I will continue my training to judge coolly without being swayed by emotions.

I hope this article will help investors who have the same concerns as me a little bit.