FedEx (FDX)

Today I had a great trade on FDX, but the euphoria associated with it was stolen by a day of overtrading. I consider overtrading to be a vice which must be controlled with discipline and a set of rules. This was a great trade, but I overtraded via the DJX and had 'trader's fatigue' at the end of the day.

It is imperative to read your trading rules every morning before getting started. Mine include a rule, "DO NOT overtrade!" Disciplined trades are the only trades which make a profit consistently over time.

I trusted a holdover on FDX from yesterday based on a few factors, one of which was the white MACD buy signal on the two-hour chart:


Another factor was support in the stock around $50. It looked like a setup to bounce back to the 50 ma on the daily chart. I knew this but did not trust it! Price actually went above the 50 and straight to the daily 30 ema.

Today was a great day to apply my observations from yesterday about trending days up, using the 5 moving average on the 10-minute chart. However, when a trade is going in your direction, your judgment is easily clouded by your emotions, and I jumped out far too soon! Later, I noticed that the 10-minute chart looked much like the KO chart and the SKF chart which I posted yesterday:


So I should have watched it on the 10-minute chart and kept my stop above the 5 moving average, using a stock price stop instead of an option price stop. Resistance 3 was a perfect target, moving stops up along the way.