This week I started trading off the wrong foot once again. Monday was a big red day, my biggest so far with over £400 of losses. But this only got me more focussed and I was able to pull the trigger on some solid opportunities, which were presenting itself during the week. In the end, I was able to finish my strongest week so far with my strongest day so far. Over £400 in profits on Friday and over £740 of profits on the week. My monthly target of £1000 is also already hit, meaning if I do things well, the next two weeks, I could really look at a solid month, which would be good news for my overall account size.
So, let’s review the market of Week 24 in 2020 in my Weekly Market Recap.
I hope you enjoy my weekly market recap. Let me know any questions or comments in the comments section below.
Table of contents
Profit & Loss Update
Week 24 again didn’t kick-off as well as I was hoping. I started with a big, fat red day: £400 thrown straight into the market. Luckily, the other 4 days were pretty solid green days. Yet, it took me until Wednesday to dig myself out of the hole but was then able to bank some solid profits on Thursday and Friday. Friday was actually my best day ever with £405.80 of profits, finishing my best week ever with £746.02 of profits.
This puts me up over £1018.27 on the month of June. Meaning my monthly target is already reached – certainly didn’t look like that on Monday.
My winning trades % on the month is currently at 87%, way above my target of 75%.
The game plan for the rest of the month will be capital preservation – not giving all my profits back to the market. And if there are some solid opportunities, I will obviously look to bank some more profits as well.
Profits on the week: £746.02 (Target: £250)
Profits on the month (so far): £1018.27 (Target: £1000)
Winning Trades %: 87% (Target: 75%)
Trades of the Week
Below, the trades I took last week with entries, exits and position sizes.
Strategy: Parabolic Short
-2 at 670.0
-2 at 619.5
+2 at 729.9, Loss: -£220.80
+2 at 760.1, Loss: -£180.20
This one, I actually already entered last week on Friday and held it over the weekend, just to take some big losses on Monday to start the week. That’s not how you want to start your week, do you?
So, this was supposed to be a Parabolic Short opportunity. The ticker gapped up a little bit, then went parabolic, breaking 600 and shooting up to almost 700. That’s where I went in short, thinking it wouldn’t break the 700 and reverse back down to the 500-ish area. Which it eventually did – on Friday this was closing at 479. So, it could’ve been a solid winner after all. Why was it a big loser for me anyhow? Well, on Monday morning it shot up again, up to almost 800 and only broke down there and consequently reversed. I was just one day early and my position sizing was too large, so I consequently got stopped out at my max loss of £400. Unlucky! Next one.
Strategy: Resistance Reversal
-2 at 474.0
-2 at 449.0
+2 at 410.0, Profit: £128.00
+2 at 381.0, Profit: £136.00
Here we have a classic Resistance Reversal Opportunity. The ticker made some huge gains straight on market open, but then couldn’t break the 500 level. See those big selling volume coming in at the 500 level? A pretty clear sign, the 500 is not gonna happen that day. So on the first flag, I went in short and almost immediately into profit.
Unfortunately, it didn’t drop as hard as I had anticipated, so I needed to hold this overnight. The next morning I added to my position on another flag pattern building straight on market open. This was a perfect entry as immediately afterwards it flushed down from 460 to 410, where I took half of my profits. Then it got halted and re-opened around 380, where I closed the rest of my position.
Bit of luck on this one as well, as my profit target was only £100, but in the end managed to pull out over £264. The game was back on.
Strategy: Trend Continuation
-1 at 1170.2
-1 at 1167.2
-1 at 1143.3
-1 at 1153.3
+1 at 1122.7, Profit: £20.60
+1 at 1132.7, Profit: £20.60
+1 at 1117.7, Profit: £60.50
+1 at 1076.6, Profit: £93.60
+1 at 1087.6, Profit: £79.60
Remember this one from last week? Yeah, I was still quite busy trading this one, this week, too. I was holding one position over last weekend, but then consequently added 3 more times to it during this week.
There is a strong resistance at the 1220 level and as long as it didn’t break that, I was comfortable adding short entries in the 1150-1200 area. Eventually, the ticker broke below 1100, where I could bank my profits, while I was closing some positions for smaller profits throughout the week to manage my risk and exposure on this one accordingly. Solid gains from this one, throughout the last 2 weeks.
Strategy: Parabolic Short
-8 at 219.5
+8 at 194.0, Profit: £204.00
Another Parabolic Short. It truly has been a volatile week, so a lot of traders were banking some good profits long and short. I focussed on the short side here again. With going long you never know how long it is gonna rally, but on the short side, you know it is certainly breaking down at some point. No stock ever rallied indefinitely.
So, this one was starting quietly in the morning, then about 1.5h after market open, it suddenly shot up aggressively. Normally I already closed my trading station at this time, but not that day. Luckily, otherwise, I would’ve missed that trade. I went in short straight after the first spike and my timing on this wasn’t quite that good, cause it actually had volume for another spike available. The second spike wasn’t high enough to take me out on my stop and I was able to bank my profits on the consequent downwards rally. Easy trade opportunity.
Strategy: Resistance Reversal
-7 at 276.0
+7 at 218.0, Profit: £406.00
Last trade of the week. And what a trade it was. My profit target on this one was actually only £200, but in the end, managed to book more than twice of that. A good way to finish the week, ain’t it?
The opportunity arose on Thursday when I saw a reversal at the 300 level and a consequent break below the VWAP, where I entered my position. Unfortunately, also on this one, my timing wasn’t quite right. After I entered my position, this one shot up to 320, breaking the 300 resistance (or what I thought was the resistance). Luckily, my stop wasn’t hit (good risk management). I profited the next morning when it flushed down to 200. It was clear my £200 profit target would’ve been hit instantly on market open, so I set it to £400, interested to see how far this could go. Checkpot hit and ready for the weekend!
I hope you enjoyed reading this Weekly Market Recap for Week 24 (2020). If you did, you can read other recaps and more content in my DSL Trading section.
If you are an equities trader out there and you are reading this, please contact me over social or drop me a comment in the comments section below, because I would love to catch-up.
If you are interested in learning how to trade equities as I do, please contact me over social or drop me a comment in the comments section below. I will then get in touch.
And as always, if you have any questions, drop me a comment in the comments section below.
Take it easy!