Trend Day (Almost)

One type of trading that I've been working on for the last few months is a "trend day" in DIA. I've had real trouble trading trend days because I second guess every decision and usually end up making a whole host of mistakes.

I nearly blew my chances again today at about 1:10pm where DIA's price dropped down to the 200 SMA (red line). I had a stop set just above the 200, but fortunately after my 4th entry of the day, I cancelled the stop order to add the additonal shares I had purchased. Price dropped quickly through my previous stop and I watched as my dialy positions dropped to -$2000. I held on and after price formed that nice little hammer, I set the stop under the 200. Fortunately the price climbed from there.

I got spooked at 3pm when volume surged and price formed the bearish hammer, and I dumped all my shares. I was regretting my decision a few bars later, but the drop at the end of the day through both the 20 and 50 period moving averages made me feel glad that I had dumped my shares when I did.