New Trader EC's Notebook

Discussion in 'Journals' started by Ely, Sep 28, 2007.

  1. Ely


    I started go live 2 weeks ago. I'm learning the strategies from Harvey Walsh. I have a part time job. Most of days I can only trade the afternoon session during the last 2 week.

    I started with $5000 and have been trading 100 shares only.
    The first day started so well with the Fed announcement.

    Today I made unforgivable mistake. I crossed the bottom line of maximum loss $50/day($100/week) and ended up with a $116 Loss($70 commission). I went for another 3 losing trades in a row after the -$50 had been reached.

    Week 1:
    Week 2:

    Total since first trade (2 weeks): -44
    Total number of trades: 27

    I will stop trading for 2 weeks until I move to my new apartment with new system set up properly.

    Here I start my Trader's Record wish I can be more objective, patient and disciplined.
  2. Ely


    I lifted the trailing stop loss too early and didn't give enough room for a profitable trade to develope. In the last two weeks, I entered a few trades developed nicely after I got shaked out with the lifted stop loss which only covered the commision. Focus too much on "cut the loss early" and "never let a winning trade turn to be a losing one". Both my winning and losing points get smaller and smaller. I should be more picky with the set up and once i enter a trade, should be more confidence and instead of running out of door with a minor shake I should hang on as long as the EMA or the original stop loss not hit.

    Don't watch too much on 1 minute chart. Instead always have a bigger picture of the market movement.

    Didn't trade today. Will do more paper trade before I regain my confidence.
  3. Ely


    After talking with JC, here I adjust my money management plan. I loose my risk a little bit.

    Every day I can not lose more than $100(commission included), will stop trading for the day if 3 losing trades happen in a row.

    Every week I can not lose more than $200. will stop trading when this number is reached.

    If had 3 losing weeks, will stop trading the last week in the month.

    So I will not risk more than $600 in one month and with my $5000 capital I can stay in the market making a number of trades in quite a few months.

    I will stick with my plan and never overtrade again. Trading is to correct my mistakes and overcome my weakness. If I repeat the same mistake, I pay the cost for nothing.
  4. Ely


    Another problem I need to work out is that I have the tendency to think of the result of the day and don't want to take home a negative number. For example, If I had a small loss from the previous trade, like less than 10 dollars, the following trade I will go for some sub-standard set ups just to make the $10 back first then I will go for some more serious setups.

    I think it's very harmful in a long run.

    Similarly, worrying too much to cover the commission ($4.95 per trade means at least 10cents move trading 100 shares) is a bad habit, it jeopardizes the real trading objective- trade to trade well.

    I will focus more on the average winning/losing points instead of the minor difference of the positive/negative after-commission results.
  5. Ely


    1 trade

    +49cents *100 shares - $10 commission

    With yesterday's practice with paper trade, I gave more time for the price to run before moving the stop loss. It works well to catch the trend.
  6. Ely



    3 trades



    Traded 1 hour today in the afternoon. During the trading made 3 phone calls to lawyer and builder. Should not trade today, need to concentrate.

    This is another lesson. before I can make profit consitently, I should not sqeeze to trade. Concentration is so important.

    The first trade exited a little late, but still OK, not big mistake.


  7. Ely


    Week 1:
    Week 2:
    Week 3:

    Total since first trade (3 weeks): -30
    Total number of trades: 31
  8. Ely


    After 1 week's away today I'm back to trade.

    Trading with 150 shares today.

    6 trades

    2 winning trades. Tried take partial profit with half shares.
    4 losing trades.

    Today I had 2 major mistakes.

    1. During the last trade I repeated one of my old mistakes to lift the stop loss and let a winning trades turned to stopped out with a loss. This is a mistake didn't follow my plan and rule. This is a problem of FEAR.

    2. The problem with plan/setup. The biggest loss came from the first trade, I was down $70. I took a too big risk of 40 cents expecting a strong breakout. I will not play this high risk game again. This is a problem of GREED.

    Except for these 2 mistakes, I followed my plan.

    plus commission -$103

    Tomorrow need to keep trading with cautious plan. Be objective and discipline.

    Before I can be profitable, I will not trade more than 5 trades everyday. I fell I am much less objective trading frequently.
  9. vansmarket

    vansmarket Guest

    another strategy is $5000 down on one trade and make $5000 on one trade.

  10. Ely


    Thanks But No Thanks!
    #10     Oct 15, 2007