This next trade is an example of correct analysis but bad trade execution.  Getting the bias, timing and character right and then failing to fully capitalize on the opportunity is aggravating.  This trade is an example of letting emotion, rather than rules, make decisions.  The answer is to have a trading plan and literally be a slave to it.

I have been following the precious metals for decades, and in early May I updated my weekly chart of the junior gold miners ETF with a telling comment.  Perhaps my mental state wasn’t completely open and accepting of what the chart displayed.  Maybe there was some deep-seated skepticism of either this method or my ability to apply it.  Something for me to better understand about myself…  Here is the context:

Whatever my mental state, I was confident enough in my analysis to enter a trade on May 13 for JNUG, the 3X bullish derivative of the junior gold miners index.  The daily chart below is the record of the trade.  The script in black font is my trade execution.  The script in orange font is my post-trade analysis.

The key to this trade was not giving sufficient thought to target zones.  With a volatile instrument like JNUG, the daily moves can easily allow emotions to take over the trading process.  While this trade was profitable, it did not produce the returns it could have.

Trading the leveraged ETF products for a swing is stressful.  Trading them for a campaign?  I will stick to the non-leveraged index ETF’s…

I am not afraid of making mistakes.  Everybody does it.  I will take the lessons learned and improve my future trading results.