As the market was about to close on Tuesday, I broke one of my personal rules and made a trade decision while the market was open. My initial purchase in CSTR was showing about a 1.5% profit and it was just under 5% from its ideal pivot point. I bought the same number of shares I had purchased the day before which basically doubled my stake.
Aside from being against my personal rules to trade intraday, this decision has bothered me for a few different reasons. The biggest reason was that the market was closed Wednesday for the Fourth of July holiday. Anything could have happened between 1 PM Tuesday and 9 AM Thursday. I could have waited, slept on it (twice), and made almost the exact same purchase Thursday morning with far less risk. Another problem with this buy is that it was too big. A secondary buy should be a smaller position relative to the first. I also made this buy decision after giving it about five minutes of thought. I put more thought into what I am going to eat for lunch every day.
Despite all the reasons that this secondary buy was a bad decision, the stock rose almost 1% today on slightly above average volume on a bad day in the market. Also, the stock was moving in my direction when I made the secondary buy, so perhaps I need to relax on my intraday trading rules. The problem is that however this trade plays out, I know better than to confuse the outcome with the process. This leaves me still unsure how to evaluate my process. I hope that will come with more experience.