Postmortem of Trade № 1

Profit and loss statement

The trade lasted 265 business days from 2016-07-01 to 2017-07-18. The price of XACT OMXS30 went from 149,90 to 186,15 an increase by 24,18 %. The total profits became 26,69 % during the same period. I made a two trading mistakes(marked by 1 and 2 in the below chart).
Trade 001

Market review

For the last year, the market has been a market of extremes. At the very beginning of the trade, the OMXS30 index set a new record one day move caused by Brexit. Afterwards, the volatility have been extremely small. The OMXS30 index have had 11 month straight in a row of price increases.
Market history

The On Balance Volume showed selling pressure at the end of the trade.
On Balance Volume

The Market Breadth showed that the number of stocks trading above MA20 steadily declined. The number of stocks trading above MA50 declined to the same level as MA20 during the last swing.
Market Breadth

The MACD Percentage Price Oscillator showed positive price momentum throughout the entire trade. A negative momentum may occur temporarily in a strong uptrend. However, during the last swing, the price momentum declined into negative territory.
MACD

Trade commentary

I started out using TradingView as my trading platform. However, the TradingView website became more and more restrictive in what free services they provide. Halfway through the trade, I switched trading platforms to Libre Office. In the process, I have discovered that I obtain a better understanding of market movements and sentiment when manually entering data into a spreadsheet by hand. It is also easier to experiment and customize indicators and data presentation.

For the first half of the trade, I only used Price and Moving Averages to assess the market trend. During the course of the trade, I learned to incorporate and visualize underlying market details to asses the health of market trend. This is why the data for Market Breadth and On Balance Volume is incomplete.

The extremely low market volatility contributed to an effortless trading experience with hardly any wild price drops. My exit level was only threatened to be broken a few instances during the course of the trade.

The two trading mistakes I made highlights the importance of remaining calm and disciplined in order to not deviate from your thoroughly though out trading plan.