Trading Journals (February)

Placed 9 opening orders and didn't get filled on any. I use a .5% envelope, and to go any lower would increase the risk.

I bought IBM when it bounced from the 107 support for a 29c scalp. + 264 (290-26)

It was clearly a sell short day, but I was hesistant to short since in recent market action, the market has sold off in the morning and rallied towards the close.

I scalped IBM later in the day, when it broke the 107 support momentarily and than bounced back for a 20c profit.

+ 174

Overall : + 438 after commissions

I decided to call it quits since I have have been fairly inconsistent lately, and wanted to quit when I was still up for the day.

I would like to improve in the following areas in Feb.

- Discipiine
- NO discretionary trading
- Improve my exit methodolgy
- Speciialize in a few stocks, since the SPDR's and Q's are really hard to trade.
- Quit trading when I am down 300 for the day.


I think that the last one on my list is the most important. I have noticed that on days that I'm down, I start taking unnecessary risks, like going for more size and random trades.

cheers,

Jim

 

"I have noticed that on days that I'm down, I start taking unnecessary risks, like going for more size and random trades. "


My probem too! I've noticed that if the day starts well I'll usually do well. If it starts bad, it gets worse. I also have a probem with boredom. If no good setups show up after two or three hours I start getting ansy. Kind of like the guy in the bar at closing time, those so so setups look better and better.

 

Placed 7 opening orders and got filled on the long side for two of them. (C & MER). The gaps never got filled and C tanked another 40c before I could get out.

I was down over 602 at the open. - 602 (includes commissions)

I shorted IBM (1000sh) when it broke the 107 support for a 40c profit. + 374

In the PM, I shorted MER (1000sh) when it tested the 20EMA (5 min chart) for a 45c profit + 424.

Was up 196 for the day.

I've got to tweak the opening strategy for trend days, but am not sure if it is a good idea to mess with a strategy that is known to work.

cheers,

Jim

 

Jim I really think you should cut down in size. Learning trading is going to take several months and although it seems to me you have a few basic ideas you risk having a major drawdown and a huge losing streak if you continue to trade 1000 share lots at your level of experience. fortunately you recaptured the $600 trading loss in the morning. Why in the World would you buy any banks in the morning. Try reading whats going on in Asia before the market opens and have some fundamental info on the stocks your trading. It is good that you have some type of strategy but if you don't cut down your share volume at least for the first few months or until you feel confident you stand a very good chance of getting wiped out.

 

Shortee,

I will cut down on size going forward. The commissions are partially the problem., but I see your point.

Buying the banks was stupid this morning, but with opening orders I could have been either long or short, the idea being that the opening price discounts everthing and you start the day on the same side as the specialist.

Today was an eye-opener in terms of what could go wrong with opening orders. I will cut my size for sure going forward and will increase the envelope for opening prices to .8%.

Thanks for your comments and suggestions.

--Jim

 

Stayed away from placing opening orders this morning. Will try them again from tommorow with a wider envelope.


Bought IBM at the open (500sh) when I noticed that the tape was looking good and the futures were rallying.
Managed a 80c gain out of IBM. + 374

Bought MER (500sh) at the open as well and sold it for a 60c gain. + 276

On MER at times, the spread widens to almost 50c , like it happened this morning, and there were a few 100 sh prints 10c above the bid. Any comments or suggestions on how to read this would be useful.

Up 650 for the day after commissions.

I took off early this morning and missed the big rally.

--Jim

 

congratulations Jim. Just goes to show you that by trading 500 or even lower volume you can still make decent money. Like I said until you feel confident that you can make money on a consistent basis you should not increase your size. That day will come so you want to go through that learning curve and you are not going to learn anything if you get wiped out.

 

I have also noticed that with smaller size, I can hold on for longer without getting shaken out.

Thanks..