Sunday, October 15, 2006

Weekly Wrap 10/9-10/13

I made $1907.38 for the week. My performance is improving this month as earnings season is picking up steam. I get this opportunity once every 3 months so I got to take advantage of it. I have been looking at my performance and I know I have to continue work on two things.
  • Letting my winners run

  • Getting more aggressive when I see high quality setups

I already have a ideas on improving my weaknesses, but execution of those ideas have been inconsistent. Sometimes I manage to ride my winners but most times I lose my position by getting shaken out or by taking profits too soon. In order for me to improve I need to have clear cut rules for entries and exits. Rules will help me get my emotions out of the picture, so the main thing that I have to do is to control myself and let my system dictate my trade.

Here's an example of a way to ride profits. If I follow my rules the main thing I have to do once I get into my position is move my trailing stop up to lock in profits. Sounds easy but I have difficulty doing this even after trading for a few years. I have to practice this daily until it becomes a habit. I got to focus on the trade, not the money.

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About Me

I have been trading for 5 years. It took close to a year before I became profitable. I find that I am improving gradually each year. My method of choice is scalping. My edge lies in tape reading NYSE stocks and staying on the side of the specialist. That is the method I learned when I started. As I build up my capital I will try new styles and trade new markets. In late 2006 my trading hit a rough patch after the introduction of the NYSE Hybrid system. For most of 2007, I have been on a search for new strategies that would help me adapt to the market.