Nov. 4 - Nov. 7 Stats Number of winners vs Number of losers: 50/50 Given all this, current PnL is slightly positive with tails on each winning/losing side almost equivalent. Volume traded increasing as a result of keeping within daily bankroll limits less shutdowns. Will hope to increase daily limit next week. Current limit deemed a bit too tight. Psychology Feel a lack and in need of revising exiting strategy: Reasons for exiting a winning trade largely based on fear of not capturing profits immediately. Conversely, reasons for not exiting a losing trade largely based on greed. Shouldn't this be the other way around? Learn to not expose yourself to risk. Before that, know when a trade position is or becomes vulnerable and further aggression against my position will be sustained. Hard to know when to leave a trade on and when to quickly exit to protect from loss. Observations Trader J made $4500 the last 3 days trading stocks that fit most to his personality, shorting stocks with large % declines with huge volume. He may have found just the right kind of stock to trade for himself. As long as he exits losing trades within a 1-2 tick max. Before this month he suffered from over trading, getting in and out of positions too often. When in the money his current train of thought is, okay i'm right about this trade, lets get the ball rolling, rather than exit for a small profit, i am going to catch the real move. he actually changed his mentality the last few weeks.One you get in the money, there will be some exiting of traders like my head trader, who are looking for the 1-2 c move and transfer this position over to people like trader J, who will actually take the real meat. What has changed? Mentality, views 1.letting go of losing trades real quick. 2. knowing when to hold and when to take profits. I really want to know this. Sometimes he exits at the best price possible. I have both respect and jealousy for him. What is he looking at? Not 100% sure. But this is his explanation. This is what I wrote down + what I observed. "I am shorting stocks that become unshortable after 10% declines." That means any declines that come after failing to push above resistance or other important points become sustainable." "Must think like the opponent (the longs)" Where are they most likely to be trapped? At retracements and other battle zones. So that is precisely where shorting opportunities for max profit arise as well, when the longs fail to take control of a certain region on the chart/level 2. "Understand where demand for shorting has been dried up" Entry of smart money/market maker to lay in the groundwork- transfer price and volume to the prop trader to do the betting - transfer to the short term momentum trader for the 1-2 tick move (look to get out immediately after this)- transfer to the latecomers (must get out here)- transfer to the dumb money (too late, reversal in formation)
Yes, definitely. Most will say you cant. But people at my firm are doing it. I don't think it will die out because of htf's and dark pools. But you have to know what stocks/times to avoid. Hope that helps.
11/15 Update What has changed? Starting this week, I have started trading stocks in play. Gap up/down stocks, stocks with most volume are considerations. What has changed? Loss limit will be extended to 4 times 10 day avg profit. Adhering to rules more strictly. Improvement needed on discerning when to hold and when to let go. Better understanding of my place in the stock market. Market does not give a damn about my position entry. Don't make things personal. For example, do hold onto position until there is clear signal of reversal/change in the tape. Do not exit just because some traders are hitting out of stocks. If bid showed strong support when you entered, it is likely that there will be shakeouts or appearance of bid level dropping/lifting. That said, which big buy orders are likely to step higher and which big sell orders are likely to step lower