Thesis: Mean reversion toward the 200 day sma at ~ 3.30.

Vehicle to play the theme: UNG

Original Plan:

Entry 14.05
Stop 13.8
Target 16.5
Shares 1
Profit 2.45
Loss 0.25
Risk/Reward 9.80

Actual Entry:

Entry 14.15
Stop 13.85
Target 16.5
Shares 1
Profit 2.35
Loss 0.3
Risk/Reward 7.83

End Result:

Symbol Date Entered Entry Price Date Exited Exit Price Profit (Loss)
UNG 5/8/2015 14.15 5/10/2015 13.9 -1.77%

Trade Notes:

The thesis was correct, but the trade execution was poor. I chased the entry rather than waiting for a pullback, which caused me to keep my stop too tight in order to keep the risk/reward high enough. Had I bought it closer to support near 13.80-14, I could have put my stop farther below the trendline below where my thesis was no longer valid.

Lesson: I need to be more disciplined about my entries so that the capital at risk meets the threshold outlined in my plan. If it moves without me, no worries. There are plenty of other trading opportunities out there.

Natural Gas Long (-1.77%)