Thanks all for your concern. Like I mentioned, the key for me is cutting off the blunders (trades that I make which are violations of my well-defined strategies. My average size is consistent with the drawdown I anticipated when starting this thread. It is the costs due to bad habits (averaging down/chasing without basis) that accentuates the drawdown. Yes, it would make sense to cut size while bringing the bad habits under control, but then when I fall to bad habits, intended sizing doesn't really matter. We shall see. That's right. My sizing is based on percentage of current balance. So a 10% loss on balance ten times in a row (heaven forbid!) does not lead to a wipeout (100% loss). Targets are a good thing. It shows what is achievable and keeps me focused on doing what is necessary to attain that. Hmmm...
Weekly Update for week 35 ended 10/26/2007 Disappointing week. Not because the net result (+17K) was bad, but because I lost an opportunity to deliver a stellar result through sloppy trading in the last one and half days of the week. I probably let my earlier gains get into my head. On Wednesday delivered good returns through puts and short position on AMZN after their earnings. However my gains were cut short by the massive market rebound towards the end of the day. On Thursday morning, again returned solid figures through shorting CMI after their disappointing earnings. However threw away that sum and more later in the day shooting before asking questions on MSFT and POT: Shorted POT after it spiked up intra-day, not knowing the reason. Discovered later on after I had lost 9K. The same day shorted MSFT at 33.5 soon after earnings release before reading the report, and forced to cover at 34.95 for another 13K loss. A number of other frivolous trades were made on Friday. Other than those I had a good number of average gainers that added up. Code: Balance B/F: 125,894 Gain for the week 17,234 ------------------------------------------------ Balance C/F: 143,128 Number of Trades 30 Number of Profitable Trades 16 Since Inception of Thread 2/25/2007 - 10/26/2007 Balance B/F: 76,636 Net Gain (Less Margin Interest) 127,492 Cash Withdrawal -61,000 ------------------------------------------------ Balance C/F: 143,128 (Adjusted balance before withdrawals is 204,128, up 166% ) Number of Trades 941 Number of Profitable Trades 530 Expected Balance at this time to be on track for Year-End Target : 340,697 Status: Behind Target (Based on adjusted balance before withdrawals) Top/Bottom Discretionary Trades for the week TICKER ENTRY DATE/TIME EXIT DATE/TIME QTY PURCHASE AMT SOLD AMT GAINS/LOSS TYPE CMI 2007-10-25-09-10-59 2007-10-25-09-58-49 1500 170954 183700 12724 SHORT ZQNWR 2007-10-24-09-32-05 2007-10-24-14-57-42 10000 43000 55800 12589 AMZN NOV 90 PUT -------------------------------------------------------------------------------------------------- POT 2007-10-25-13-32-53 2007-10-25-13-53-03 2000 232000 223300 -8733 SHORT MSFT 2007-10-25-16-16-17 2007-10-25-16-32-02 10000 349481 336050 -13466 SHORT (Before Interest and Other charges) TRANSACTIONS ANALYSIS FROM 2007-02-25 TO 2007-10-27 Current Week | Since Inception of Thread | Method Gains/Loss No Of Profitable | Gains/Loss No Of Profitable Trades Trades | Trades Trades Automated AutoTrade1 0 0 0 | 5548 207 115 AutoTrade2 0 0 0 | 3372 12 8 AutoTrade3 0 0 0 | -4523 3 0 AutoTrade4 -765 1 0 | -15301 3 0 ----------- -------- ------------ | ----------- ------ ------------ Total Automated -765 1 0 | -10905 225 123 ----------- -------- ------------ | ----------- ------ ------------ Discretionary Long 1386 6 4 | -42931 252 149 Short 26703 12 7 | 4395 249 144 Options(long) -10181 11 5 | 177801 215 114 ----------- -------- ------------ | ----------- ------ ------------ Total Discretionary 17909 29 16 | 139265 716 407 =========== ======== ============ | =========== ====== ============ Net Totals 17144 30 16 | 128361 941 530 =========== ======== ============ | =========== ====== ============
are you sure your better off with ameritrade instead of ib?a flat commision might be better but ameritrade barely pays interest on the balance, while ib pays pretty good rates. its probably +$4K a year in your case(minus additional ib commisions),also mbtrading has flat commisions(I believe its $5) and pays 4% on balances
With my average trade being 5000 shares, I have a saving of about $30 for a round-trip. That beats the interest in IB after about 150 trades. Maybe if and when I decide to add futures to my trading, not now.
This is a great example of the trading process, with gains ultimately beating out losses. If you have the time (I know you have much more important things to attend to), review your trades. See where you how your good entries resulted in positive trades, and the shooting from the cuff trades resulted in you having to cover at a loss. The more you curtail the impulse trading with a disciplined, methodical approach, always aware another setup is around the corner because you have such a diverse pool of trading opportunites to choose from, the better your overall performance will be, and the more solid and cosistent your equity curve. (Sincere) good trading, Jimmy Jam P.S. Tighten the protective stops and realize they are your only friend in this game, they'll leave you with plenty of gunpowder for the next opportunity coming around the corner.
Neke, Still too much gambling in the trading (earnings trades). There is NO WAY this can grow consistently. Maybe a grand slam lucky trade.. Bought YGE and SCHN today on consolidation breaks using Trade triggers (I love them..)... DRYS consolidating to do something... these are routine trades in strong sectors... Why not swing trade half the account? The returns CAN match the huge daytrades..
I do trade the news (after the news) based on my analysis. The ones I regret are the ones I do before I read and digest the news. It is part of my style which on the net makes me money. If that is gambling, why does support/resistance not qualify as gambling? can anyone bet that any trade is a slam dunk? It is about probablility, whichever way, if you have found an edge.
Good points Neke... Just a difference in when we do your "work".. Mine is reviewing a thousand charts a week, yours interpreting reports and market reaction...
And I have found TD Ameritrade to be great at fills. Some of these firms with lower commissions have crappy fills. My only complaint at TD is their insanely high margin rates.