Sam's Day Trading Log (With Charts)

Discussion in 'Journals' started by Sam Morgan, Dec 14, 2010.

  1. Pic. 2:

    Trade 2:
    SHORT:
    Entry: $64.24
    Exit: $63.11
    +$1.13

    <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=3071418.png">

    Total (+/-): +$551.00; [+$565.00-$14.00(commission)]
    2011 Net (+/-):+$3213.87
     
    #201     Jan 26, 2011
  2. sowterdad

    sowterdad

    Sam,
    Good Thread,
    " 01-25-11 05:50 PM

    Pic. 2:

    Trade 2:
    LONG:
    Entry: $47.94
    Exit: $48.75
    -$0.81


    A really good trade that I got shaken out of. This is a constant problem I am having (long tails) and need help/solution with this issue. I tend to get frozen out of the remainder of the trade and due to lose stops have some profits lost "

    I swing trade, you day trade, we have similar issues. Universal issues for traders in all time frames I suspect. I recently opened my stops and the market ate my lunch. And my stops. I just said, well, I'll open things up and I'll succeed , and that wasn't the right week to do that.! I deserved what I got for complaceny.
    Just some thoughts for your consideration- As i work through ways to improve my own trading ,, putting out some ideas out here that may not have any merit for your methods. That acknowledged, I will ramble on:
    Have you considered trailing staggered stops on your position? On this trade, price tailed down and took you out on what was certainly looking bearish at the moment the bar was forming.. Have you considered waiting for the bar to complete before acting on it? Note that the long tail of the bar never touched the fast ema (8).
    "This is a constant problem I am having (long tails) and need help/solution with this issue."
    You always have to have a level where you say I won't take anymore if it's going wrong- If a trade starts to head that way, maybe clear 1/2 the position if it's at your entry point, and then give the remainder a little room- You've reduced your risk by 50%, and then should reenter the trade once it goes higher with the remainder?
    On the chart you posted, with the long tail that took you out- The long tail never touched the 8 ema line. You sold at the time because that bar was red at that moment, and was taking what was likely a profitable trade into a losing trade - The bar was not completed and was not confirmed. It was definitely below the prior at the time, but had not even touched the fast ema you were using.. Nothing wrong with limiting a potential loss if the trade appears to be going South IMO.
    Consider:
    Most of those price bars stayed well away from the 8 ema as they strongly uptrended. Would adding a faster ema in addition to the ones you use- perhaps a faster or simple ma- be of any benefit?
    Price will periodically return to the fast ema as normal expansion, contraction- and even in your fast time frame, that seems logical- A faster ema -or simple MA in addition to those you use, would give you a way to perhaps trail price from a distance, and not start to react until price makes a closing bar that closes below the faster ema. At that time, A portion of the position can be raised to the low of the bar that violates the fast ma:, the remaining positon also raised -perhaps to the next ema level- Price gets 1 opportunity to close a sell bar BELOW the fast ema. If the bar does not close below, the trend is still likely up.
    A faster ma would perhaps give you that edge, and also keep you in a trade longer with a portion of the position if it is warranted.
    You got whipsawed on a volatile bar- But you also defensively protected a potential greater downside at the moment you were watching price go down. I think that's not a bad thing to do- If you had split the positon - 1/2 at entry cost and 1/2 at a stop, you perhaps could have kept 1/2 the positon in play as price moved up and then reentered the other 1/2 albeit higher. Have you considered trailing a moving stop based on historical volatility? Don't know if that pertains to your time frame? Say 1.5x historical price movement?
    My sense of things is that I make 2 mistakes-
    It's not that my stops are necessarily "too tight" - It's that I fail to follow through and make the re-entry that is called for when price moves higher.
    And, that I still want to "lock-in profits" quicker than I should- Like stops, I should layer my profits when I have them, hoping for the larger gain.
    It would appear that a good number of your trades "nail" the move, with an exit on any weakness. I may be wrong here, but I believe one of your exits was on the first small red bar well above the fast ema, and that nailed it- As a swing trader, I'll look to take a partial profit under a pullback above the fast ema, because price is often extended.
    But I also realize, that as long as the trend is up, until price closes below the fast ema, the opportunity remains to the upside. Therefore, I usually move my stop to the low of the first bar that closes beneath the fast ema .

    We have different time frames, but also similar issues to deal with. Good Luck going forward! SD
     
    #202     Jan 26, 2011
  3. SD, I see what you are saying. However, I trade larger positions, so my risk tolerance isn't very high. Hence, whenever, I see some weakness that makes me uncomfortable, I'm out. I think your strategy of scaling down is something I may consider, but I am backtesting a method at present which gets me out altogether, albeit with a higher profit. However, with that method, it requires the commitment to get right back in if things continue to move positively. My brain needs some training to be able to analyze and react within the time frame that the stock is tradable.

    Also, there is something very interesting about these long tails that I have noticed. Since I want to avoid this thread forming a new topic altogether, I'll PM you to discuss.

    SM
     
    #203     Jan 27, 2011
  4. 01/27:

    Pic. 1:

    Trade 1:
    SHORT:
    Entry: $26.96
    Exit: $26.31
    +$0.65

    <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=3073896.png">
     
    #204     Jan 27, 2011
  5. Pic. 2:

    Trade 2:
    LONG:
    Entry: $20.08
    Exit: $21.34
    +$0.26

    <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=3073899.png">


    Total (+/-): +$896.00; [+$910.00-$14.00(commission)]
    2011 Net (+/-):+$4109.87
     
    #205     Jan 27, 2011
  6. sowterdad

    sowterdad

    01-27-11 12:57 PM

    "SD, I see what you are saying. However, I trade larger positions, so my risk tolerance isn't very high. Hence, whenever, I see some weakness that makes me uncomfortable, I'm out. "

    Sam, Since I don't trade on your time frame (Daily, 60 minute charts for me) Caveat emptor- I'm making suggestions for your consideration- I have not been there or done that on your time frame. It seems that trading issues on different time frames are very similar though.
    Therefore, I have no idea whether they would have any merit in your approach. Price bars are price bars though, and a trend is a trend - Albeit on different time frames. If we are both trading breakouts of a range, on upward momentum, our charts look similar. BTW- I also am inclined to lock in on price weakness.



    "I think your strategy of scaling down is something I may consider, but I am backtesting a method at present which gets me out altogether, albeit with a higher profit. However, with that method, it requires the commitment to get right back in if things continue to move positively. My brain needs some training to be able to analyze and react within the time frame that the stock is tradable."

    I think that if the primary trend is intact, a reentry on a stop-out is called for. Using stops is just the cost of an insurance premium on the trade- Sometimes the premium gets charged, sometimes not. If stopped out and price rebounds, try the reentry higher- But on your time frame, stuff happens FAST.
    I could see where 5 min bars could cause you to react very quickly- A 5 minute bar rolling over likely is price only touching the uptrend line on a 15 minute chart....

    Do you refer to a higher time frame to assess the "primary "trend? Support/resistance levels?

    "Also, there is something very interesting about these long tails that I have noticed. Since I want to avoid this thread forming a new topic altogether, I'll PM you to discuss."

    Feel free to PM me whenever-limited time- day job- I have a couple of hours in the pm weekdays to try to swing trade. However, I always enjoy price analysis- & exchange of ideas.

    Long tail bars can speak volumes-sometimes but not always. Just for fun- Take a look at APH on a daily time frame- just for the exercise- long tail hammer bar there called it right. Doesn't always go that way. Was that type of move your thought?-

    This is an actual position for me now. stop is at $54 -entry delayed @ $55.39- Your thoughts if you were using the daily?

    Look forward to a further discussion - Good Trading! SD
     
    #206     Jan 27, 2011
  7. 01/28:

    Today was one of those days where everything seemed to go my way. At a certain point, I even thought, that something wasn't right, but I still kept on taking money. I almost felt like a Pro (and believe me, I really am far from that point). To cut it short, I really do hope, that the way I traded today was because I am improving (thanks to all that are contributing to my progress!!!) and not just a fluke. I'm sure luck really played it's part today.

    Overall, I'm excited, as I have never made this much in a single day. However, I am trying to keep a tight lid on it, because I know tomorrow I may very well be sobbing right here.

    Pic. 1:

    Trade 1:
    SHORT:
    Entry 1: $17.28
    Entry 2: 16.54
    Exit: $16.24
    +1.34

    *Tried shorting some a little earlier, but no shares available :mad:

    <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=3074957.png">
     
    #207     Jan 28, 2011
  8. Pic. 2:

    Trade 2:
    LONG:
    Entry: $111.51
    Exit: $111.71
    +$2.20

    <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=3074960.png">
     
    #208     Jan 28, 2011
  9. Pic. 3:

    Trade 3:
    LONG:
    Entry 1: $26.31 - (1000)
    Exit 1: $26.75 - (500)
    Entry 2: $26.88 - (1000)
    Entry 3: $27.11 - (1000)
    Exit 2: $27.26 - (2500)
    +$1.92

    <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=3074995.png">


    Total (+/-): +$4010.00; [+$4045.00-$35.00(commission)]
    2011 Net (+/-):+$8119.87
     
    #209     Jan 28, 2011
  10. Very nice Sam ! I like how you're adding to winners too.
     
    #210     Jan 28, 2011