February Trading Journals

Interesting point randomwalker, about trade going to size.

My take on that is this, if the 'size' was worried about getting filled, they would not be there waving the flag in the first place.

Size is saying 'here I have this order, take it or leave it'.

Most of the time they get the fill, but not always.

 

The only analysis I can give to this one is that for the past several days all these credit lending companies such as HI, COF, ACF etc got clobbered. They all went down like clockwork for the past several days so today was the day that buyers said enough is enough and they all bounce up very hard. I think Hitman's entry was a good short based on the daily charts and he an excellent exit strategy unfortunately this squeezed happened. god thing for for Hitman he didn't hold on this short for HI went up another 4 points.

 

yeah really shorteee, talk about risk management. that would have been one ugly squeeze especially with 1500 share position. I say good play hitman, no matter how bad it hurts, i guess it was inevitable for something like this to happen. I think back in the days you even said something like that, that at some point its bound to happen. Maybe this was that one time, who knows, just be thankfull that it wasnt worse!:eek:

 

A gift 3PM rally turned into a very important win for me as I had to come out and prove to myself that yesterday was a fluke. I knew I have been playing better and I am on the verge of a breakout, and I can not allow that HI trade to stop me dead in my track.

16000 shares each way on 13 of 21 shooting, +1528 before commissions, +1173 after, no bullets. The good thing is I have recovered all of yesterday's losses, the bad thing is I wasted last two games when I had a decent start and was going for a big week.

Pre-Market: Didn't really see any major news that is directly related with the stocks I trade.

9:30: Long DNA on BTK strength and got just a quarter on the first little shakeout, he had a weak daily and I thought he would crap out and almost went bullet, thankfully I didn't put it up. Took AMR and DAL on XAL strength, flat in AMR, 20 cents out of DAL.

9:45: Long TGT and lost 10 cents, took HP on OSX rebound and got just 20 cents, stock went up a lot during the dead zone and I missed it completely. Tried WDR and lost 20 cents (too thin, no place to get out, I had just 300 shares) as he had a seller in him that prevented him from joining the financial rally until 3PM. Got DHI on morning home builder strength and scored 30 cents. Tried EMR and got 10 cents.

10:05: Thought RLX will come back went long LOW/KSS, lost 20 cents in KSS and flat in LOW, tried SPF but home builders started tanking and I lost 15 cents in that. Went long VTS on OSX move and out for flat. The market was up but it felt really weak.

10:45: Precious metals have been the hottest sector last week or so and I went long AU as it was the only gold stock down on the day. It did not move and I got bored and sold for 10 cents profit and it went up 75 cents from there. I gotta take those stocks seriously from now on.

11:10: Went for FMC and ADI on small positions but stopped out for flat on both. Went short ADI and covered for half a point profit. I really wanted to hold on to him but old habits die hard, he had the perfect daily and was weak in the morning, I shorted at 38.95 and covered at 38.55, it went to 38, if the market didn't rally it would have went down more and I even told myself to hold on to it and I had a small position. Sometimes you just have to tell yourself that you got a great entry, everything looks good, and you are willing to take either a point or flat, nothing in between.

1:30: Took some tiny positions in DO and GSF, made 25 cents off GSF but lost 10 cents in DO.

3:00: I was up just $350 and I was very bored. Futures went up and I took some small positions and as soon as I saw the BID's I added more. Had FMC, ETN, CTX, PPG, DHI, EMR, BJ, and didn't leave much money on the table as I had anywhere between 300-1000 shares a piece and used very tight trailing stops. CTX closed 60 cents higher than my exit but 40 cents of which came on a MOC.

I know I am capable of bigger games, I can tell I have made a stronger attempt to hold on to stuff when I am in the money, and tried to develop a stronger conviction whether the trade I am in is worth a scalp or a swing.

As traders we have a circle of comfort, unless we try to move out of that circle of comfort we will forever be stuck with our current stats. So many times I have tried to hold on to things a little longer, add a little more size, and I have got smacked.

One day however, I will succeed, that circle of comfort will grow, and it will open the door for bigger games. I can't wait. I have a lot to prove.

 

Responding to item #1, I don't use market orders. Well, okay, I've probably used 5 of them in total, since beginning to trade professionally, and then only in the beginning. The cost of bad fills by using those always tends to be worse than just using a few aggressive limits. If not always, certainly in general.

 

Garbage game for Chinese New Year Eve as I suffered a quick collapse into the close and could not score down the stretch. 19300 shares each way on 9 of 19 shooting, +648 before commissions, +227 after, no bullets.

All day I had the right biase but for whatever the reason the stocks I am in would not go and I ended up missing key lay-ups. Several times all I needed was just a few more ticks in my favor with a pyramided position and the whole stack ends up collapsing on me.

Pre-Market: ROH added to recommended list, DD IPO positive news, PPG upgrade, long chemicals!

9:30: DOW opened down and I went long 1000 shares and my stop was just way too tight and ended up getting just 40 cents. Missed the big leg up from 30 (which triggered a breakout on the daily's). Didn't take APD/EMN when they were up just 20 cents (should have bought just a couple of hundred which is what I always do when I am not sure, then I will add when I see BID's). Had FMC and got just a quarter point. RLX was strong and took S for a quarter. Tried APC at 47.81 and shaken out at the intraday low and the stock went unchanged, chopped for a while, and all of a sudden a massive energy rally hits and I missed it completely. Took a little LM and bailed for 10 cents loss immediately as XBD was weak in the morning.

10:00: Tried HP and EP on energy rally which of course chopped and churned as I got out flat and did not get back in. Tried DHI, BZH, SPF on home builder rally, got 30 cents out of SPF, flat on DHI, lost 20 cents in BZH (tough, thin stock but really really moves) on a shake out.

10:45: Tried a little DOX and out for flat. Tried to short ADI but covered for flat immediately when I just had this gut feeling that the market was strong. Tried a little AGN and stopped out for flat and missed a big move on DRG rally.

12:00: The trade that ruined my day, took COF at 45.53, added more on the way up and he broke 46, pared in and out along the way but after he broke 46 for a second time I thought he was for real as all the other credit service stocks came back. The stock just collapsed on me and while I pared out along the way I kept on thinking that it was just a reversal and always held a little bit and tried to get back in at every uptick. From +$150 I ended up down $250 in him which rarely happens to me as I simply hate to give back money. Of course by the time I finally gave up, thought he was weak (futures was hitting new high's and COF was hitting the low's), it was near the low of the day and I watched it ran up a point.

12:05: Tried CTX/DHI on home builder strength, and again, built a position carefully on the way up, what killed me was a sudden collapse in those stocks (especially CTX) at 3:40 or so as the seller in those stocks took control. I was slow in getting out and I ended up losing money on both after commissions. Painful lessons but I have to learn to hold and I really tried to hold at least a partial position through some shake out's. Home builders were up two percent and I have got shaken out of CTX too many times in the past and I really thought it would have closed near the high or even made a new high.

2:30: Caught super lagger VTS for 15 cents on 1000 shares as I missed the entire OSX/XNG/OIX move. That along with chemicals used to be my bread and butter and the inability to capitalize on those moves really hurted my numbers today. Tried FDC and stopped out for flat and missed a 50 cents pop near day end. Some really bad execution in CRA as the stock was clearly undervalued versus BTK and I ended up losing 5 cents on a light shakeout.

Bad performance today as I could not as for more from energy/chemicals, should have scored a lot more but I will move on to tommorrow's game.

With a poor performance today I gave up the YTD lead to one of the traders on my team (the only other trader net positive YTD on my squad), I have to step it up tommorrow.

 

Happy Chinese New Year, Hitman

 

Hitman,

You still using the 30 minute charts??

Candle

 

Hehehehehehe,

nitro