This strategy is wrong:
I bought during a sharp fall.
I sold the rebound-test.
I should be:
Selling into weakness.
Doubling up in the rebound-test.
Because if I would be going against the intuition traders, that want to catch the falling knife (like I did on both occassions below), I would be able to build positions, hold them overnight, increase them. With the tactic employed below the chances are large that you try to catch the knife which instead cuts you and keeps falling….
I’ve been fortunate three times in the past 10 days, that I at least had the good sense to get out on the rebounds. But if there had been no rebound, the position might still be open. — For that reason I put in stop loss orders when putting on a trade in more than 50% of my trades. If my stop gets triggered I step away for 24 hours at least.