Thesis: Read about the full-thesis in my post here, but it was a classic mean reversion setup.


Original Plan: Buy 1/2 a position at the close the day of the breakout and add on the following day if we got follow through. Take profits near 27.50 on the full position.

Entry 24.2
Stop 23.6
Target 27.5
Shares 1
Profit 3.3
Loss 0.6
Risk/Reward 5.50

Actual Entry: Bought 1/2 a position at the close at 24.28, but did not add ont he following day because of lack of follow through.

End Result:


Symbol Date Entered Entry Price Date Exited Exit Price Profit (Loss)
JJC 12/11/2015 24.28 12/15/2015 23.58 -2.88%

Trading Notes: None, this was one of the only trades this year where I actually executed my plan as it was designed. The loss was taken and the thesis will be revisited if Copper futures get back above the top of this range of 2.02-2.13.

Lessons: Sometimes the best trades are losers because trading is more about consistent process execution over the long-term than it is about individual trade outcomes. Another lesson I can anticipate in the coming weeks is that I need to stick with my theses for longer and watch it even after a trade doesn’t initially work out. Many times in the past I’ve just been early, but the thesis ultimately develops into a profitable trade later on, but I don’t participate because I didn’t keep the idea on my radar.

As always, if you have any questions feel free to reach out and I’ll get back to you as soon as I can.

Long JJC Trade Review (-2.88%)
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