My first Journal

Hello folks, I’m a relativity new trader and would like to open a trading journal my goal is to take a conservative approach to the markets while limiting my risk. All trades will not exceed 1% of my capital (except gap downs). The only stock market book I’ve read was by Van Tharp “Trade Your Way to Financial Freedom”. I had to read it a few times because it was over my head..

I will use some of the methods I’ve read in Tharp’s book to apply in my methodology. Bet size will be based off volatility as well as stops. All stocks selected for trades will be based solely off charts. I don’t sit by my screen all day and so most decisions are based off closing price and my departure from a stock comes from my stops. Hard stops are placed in once position is taken. Stops only get adjusted when the position moves in my favor.

Having done my research tonight tomorrow I will more likely then not just stand-by as I’m not finding opportunities at this time. I have learned to stay away from things when I got to kick over rocks to find set-ups. Currently I only trade equities both long and short. My time frame for any trade is as long as I can hang on with out getting stopped out.

This won’t be an exciting journal and in fact you will find it very boring, but I’m looking forward to hearing from some of you who have been doing this for a good while and look forward to constructive criticism and or teaching points. I would however ask if you come to rain on my parade to please not reply to this journal..

CM

 

Here are a few opportunities I’m looking at for possible long candidates.

FCX
VMI
GRMN
SYX

 

Well, now that the S&P has moved back into it's range I'll standby and see what develops here. Is this just a little pullback? Well I don't know as I'm not that smart to predict where we go from here.

One thing is for certain today's action for the most part did not bode well with long trades. I got home before the close and looked at my candidates and figured it is best to stay in cash. So cash it is for me. I've learned that I don't need to trade all the time and in choppy water the best place for me is on dry land..

 

Dropping all except FCX and adding MRO USM ELON GHDX.

Well the S&P dropped about slap out of it's range. This is tempting on the short side, but I'll continue to wait on set ups. The S&P basically gave back all of May's gains. Now having conducted my evening study I just don't see much to get excited about. So once again I'll exercise patience and see were we go from here. Depending how we bounce and when I'll stay away from shorts at this point. We've come down pretty quick and so I'd expect the possibility of a bounce after a rough open. Well we shall see and maybe I'll be able to enter a trade one of these days.

 

Today we had picked up a long in FCX. Picked it up at 73.21. On a 35K account we have position size of 78 shares for 5,712.38. Our initial risk was 345.98 and will adjust risk based off closing price to 71.54. This reduces risk on trade to 132.26. We are looking at initial tgt at 77.62. Should price move in our favor stops will be adjusted from closing price.

Having looked over my scans I’m seeing thus far stocks in a deep pullback. Not sure if they are rolling over or not. Anyway I think next week will paint a cleaner picture of what’s to come. I’ll also be keeping an eye on fib .786 for any signs of stalling.

 

I'm trying to see if I can download a file to ET.. I'll try this to see if it works..

Well that did not work. I tried to attach a png file from my PC.. Not sure how this works..

 

Stocks...no more than 1% of capital=small and steady...good luck!

 

Rateequad, thanks for your encouragement. I'm not trying to get rich quick and have blow an account before by gun-slinging and reaching for the fence. I'm much more conservative now.

 

Test to see if I can post attachment file..


edit: Ok I think it works.

 

Well missed the entire trading day and will adjust stop on FCX. I’m putting stop in now at 72.63. This now reduces risk on position to 47.24.