Anatomy of a very mediocre trade – $KMI – 12/31/2015

Hoping this will have some value. While this trade was a loser, but small, I feel like I managed it well. OTHER THAN just waiting around all day. That being said I traded my plan:

Kinder Morgan, Inc. (KMI) -NYSE Good trade yesterday. Will watch for pops around $14.80, add up to $15, with a stop around $15.25. This could pull hard if selling comes in.

Potential takeaways:

  1. Traded my plan and did not deviate.
  2. Waited for entry in the morning, did not chase, let it come to me.
  3. Added per my plan but did not get aggressive and “Try and make it work.”
  4. I logged to my trade journal through the day and kept my thoughts organized: See Below
  5. Biggest bummer was sitting in this all day. But I got a TON done on other projects. There were for sure other trades to be made but I committed to this one, and followed the plan.
  6. Other “bad” thing about this trade is this company is “real” and I should not be surprised it did not crack.


9:39 AM Shorted starter on $KMI @ $14.68, “kind of an accident” playing around with DAS settings and didn’t have “order confirm” turned on. Ok entry it was on a pop and was basically the plan.

10:22 AM Came close to adding, but Nat Gas inventories at 10:30, see how that plays out.

10:34 AM Nat gas numbers out and UGAZ pulling but KMI holding, wish I understood what these nat gas numbers mean….

10:38 AM added at $14.77, not super please with this, stop on $15.00

11:31 AM Running out of patience at $14.60 and Nat Gas is going up

11:44 AM Blegh pushing up with nat gas, still barely green, get ready to cut looks like not gonna work today. Perked above VWAP

12:07 PM $WTW lots of opportunities today, should have had more defined plan.

12:35 PM $KMI giving to much time, little pull in nat gas here. Still under my stop so technically I’m following my plan but just does not look like its working. Sooooo slow

1:46 PM At my stop but nat gas is fading, being stubborn, but basically at my stop, see if this goes anywhere $KMI

1:53 PM Added on Spike to $15, lower stop to $15.10

2:58 PM More blegh… At least I was busy getting lots of other stuff done, but holding this $KMI all day has been excruciating. Getting ready to exit, couple penny fade. Stop on $15.01 now or cover into ANY profits just to get rid of this thorn in my side.

3:30 PM Covered KMI, didn’t crack $14.90 not going to hold overnight (real company) and I’m not going to risk a spike into the close.

5 thoughts on “Anatomy of a very mediocre trade – $KMI – 12/31/2015”

  1. Hi Tim.
    Do you trade stocks that are related to commodities, like Oil & Gas? Do these stocks have any significant difference in price action unlike other industry stocks?

  2. I try and avoid commodity stocks for this exact reason. This thing is wrecked and wants to crack, but Nat Gas is up today so it hangs around. I’d rather trade stuff that is not tied to any commodity.

    In all honesty notice my first note on the entry, had I not “accidently” entered I would like to think I would have ignored this thing today…

  3. I know you perfectly nailed KMI on Dec 30. Did you trade it then because Nat Gas was down trending first half of the day (on Dec 30)?

  4. Ugh, I wish I had a better answer.

    But no, the day I nailed it I NEVER checked Nat Gas.

    Like many traders I start digging for reasons to justify a trade when its NOT working. When it IS working, I just sit there and let it work and take a nap instead of doing research 🙂

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