gotta_trade's swing trades

EOD: Tuesday, July 29, 2003




TODAY'S TRADES:

Sold 100 CHH 30.45 (2nd scale out, for a profit of $2.30 per share)




OPEN POSITIONS:

6/10/03......B......50 MTX @ 48.00........+ 1.99
6/27/03......B......50 DRL @ 45.10.........+ 2.74
7/18/03......B......200 MRD @ 27.10.......+1.30
7/23/03......B......100 CHH @ 28.15.......+ 1.80
7/25/03......B......200 NYB @ 30.50.........- .01





Unrealized P&L................................. + $674.00

Realized P&L...(as of 6/1/03)...............+ $2,820.00


TOTAL P&L REALIZED AND UNREALIZED........(as of 6/1/03).............+ $3,494.00

 

Enjoying your journal (just in case you were worried no one was reading it.) Would you mind explaining your exit/stop criteria - especially for those positions you hold for a long time? I'm surprised you didn't exit DRL after it shot up on the 14th.

edit: just backed up and saw you did scale out partially so I guess I better rephrase the question to ask what will make you close out the rest?

 

Hi MrDinky,

(I never thought that I would address a letter to a Mr. Dinky. )


Thanks, glad you're enjoying this journal.



Regarding DRL:

6/27/03..... Long 200 DRL 45.10
7/07/03..... Sold 100 DRL 47.00.....profit of $1.90
7/15/03..... Sold 50 DRL 50.48.......profit of $5.38
(Presently at 47.84.....profit of $2.74)

I am being consistent with scaling out of my profitable trades. So I realized a profit of 1/2 of my open position on the 15th. I wanted to leave some on the table. I didn't want to take myself out of the trade.

I don't regret my decision.

At this point, my worst case scenario stop is breakeven, although I'll probably get out of the trade before that.



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Regarding Exits and Stops: (I copied and pasted some things from some of my prior posts)

I predefine my risk. I Make sure that the maximum expected loss is worth risking for the potential minimum profit.

My maximum expected loss is some area below a weekly or daily swing low.

I'll start my first scale out at the minimum profit potential area.

If the trade stalls and the circumstances change I will get out earlier. I'll always play towards the safe side.

I also have a rock hard stop, which is the most that I'm will to lose on the trade. (that amount is the same as my maximum expected loss). If it trades there, I'm out no matter what. I call that my back-up parachute. If for some reason my regular parachute doesn't get me out, the back-up parachute surely will.

I also do not hesitate to take my losses. When my premise becomes invalid, I get out without hesitation. Whether it's a profitable trade or not.

I will scale out of the trade when it is profitable. I want to "claim" some money.

I don't have any control over what the stock's gonna do, but I do have control over what I'll do in relation to how the stock acts. I'll close the position.

I would rather close the position early, and have a relatively small loss than close it after the weakness is obvious to everyone and the stock free falls, which will give me a large loss.

I'm just trying to be very patient. I also don't want to think that I am smarter than the market. If the stock goes against me and proves that it's not cooperating to my plan, I will get out, cuz my plan will never override the market's plan.


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So Mr.Dinky...(no offence, but your name does make me smile...)

Basically, there is no one indicator or "thing" that I look at that will get me out of the trade. I'm just letting my market experience guide me.

I become more and more experienced each and every day, and that experience will influence the decisions that I'll make the following day.

I'm always willing to learn. I won't make drastic changes to my strategy, but I will slowly incorporate them in over time.

I hope I kind of/sort of answered your question. If not, ask again and I'll try to be more specific.

Thanks for the question,
gotta_trade

 

Gotta Trade,

I really like your swing trade journal. I am now swingtrading only whole sectors using ETF shares (I am posting my trades to our local trading Web forum on www.traders.cz), but I am interested also in swingtrading of individual stocks. So I read your journal with big interest.

I have question regarding selection process of stock to trade.
You mentioned that you scan market for very strong or very weak stocks using your TC. What are typical criteria for such scan ? Above MAs?, MACD ? Also have you any criteria for stock price (like min. price is 10 USD - it means you do not trade anything with price under 10 USD)

Second q: You mentioned that your scan produce 500 - 700 results. Do you check them every day before open to find setup to trade ? Or are you scanning only once a week ?

Thank you for your reply and happy trading ...

 

EOD: Wednesday, July 30, 2003




TODAY'S TRADES:

Sold 100 CHH 29.65 (last scale out for a profit of 1.50 per share)

Sold 50 DRL 46.25 (last scale out for a profit of 1.15 per share




OPEN POSITIONS:

6/10/03......B......50 MTX @ 48.00........+ 1.78
7/18/03......B......200 MRD @ 27.10.......+ 1.26
7/25/03......B......200 NYB @ 30.50.........- .25





Unrealized P&L................................. + $291.00

Realized P&L...(as of 6/1/03)...............+ $3,027.00


TOTAL P&L REALIZED AND UNREALIZED........(as of 6/1/03).............+ $3,318.00

 

I closed my CHH position today.

 

I closed my DRL position today.

 

Hello richk,

In order for me to scan for stocks that I consider strong.....I want:

• moving averages to be above moving averages.
• qualify it with what I would consider some sort of weekly uptrend.
• I want stocks that are somewhat active.
• I don't want to look at stocks under $10.00 per share

At this time, after my scan, I'm coming up with about 500 long candidates and about 30 short candidates.

From there I will manually go through each and every chart to select stocks that will appear on my "potential trade" list.

That part is 100% discretionary.


Then if those stocks trigger, (which I'll also use discretion), I'll enter the position.


I go through that process everyday.

In June, when I started this journal, it would take me about 4 hours to go through those charts. Then after a couple of weeks, I could do it in an hour or so. Now I can do it in 1/2 hour.

At times, I'll take my time going through each chart. I also observe and learn and try to see if there are any improvements that I can make to my strategy.

I'll mentally take notes and keep everything in mind. Then if it proves to be something that could work, I'll incorporate into my method.


I'm happy with the way that things are working out so far. I'm really enjoy swingtrading. But it's still to early for me to tell if this is something that can be a consistent money maker. I'm gonna do my best, I'm giving it 100%, and hopefully things will work out.


Thanks for the interest in my journal. I checked out the website you mentioned, I found the english link, but I couldn't find your journal in english. Maybe you would consider posting a journal on Elite Trader. Either way, I wish you the best and keep me posted.

Good trading,
gotta_trade

 

Thanks again for the response to my earlier question. Great stuff.

 

Thank you for sharing your info, gotta trade. I am learning from your experience , thank you.