Forget swing trading, current market environment for the last few months is ripe for daytrading. Profit, once seen, has to be taken. Any attempt for a longer ride on the “perceived” trend, which is definitely a respectable position to take, have been seriously punished by current market condition.
As a trader, we need to adapt, adapt, and adapt. Flowing with the market also means reading the multiple sign posts given by the market. All these multiple small losses you took as part of trade management are your guiding light to the mood of the market. If you are applying the proper trend-trading strategy in the market but kept getting punished, you know the market mood has changed.
My strategy in monitor marketing mood is by having multiple trading accounts. One for day-trading, one for swing trade, and one for longer-term trading. So far, my daytrading account is ahead for the year but my swing trade and long-term trade accounts were not doing well. However, I was able to reduce my damage to my accounts by decreasing the positions and trading activities to my non-daytrading accounts.
As long as you are disciplined and always stick with a specific strategy for the trading period, day trade or longer-term, your losses are your sign posts you should not ignore.
I took profit on my DNDN this morning. Also attempt to catch the SINA falling knife but got a minor cut instead thanks to the close stop a few ticks below yesterday close.