Wednesday, November 15, 2006
The thought of money affects my trading again
I started out great and was up $295 in the first 15 minutes. Then I got a string of losers that took all my gains away. One bad trade in CPA set me off in a downward spiral. I tried to buy the break of 43 with a market order and got filled at 43.25. I should have closed my trade but I hesitated choosing to wait and see if it would move higher. The stock had no bids and dropped like a rock. After the loss I kept thinking about the money lost and how much I would have been up if I had not taken the trade. I just kept losing after that. I found myself actually down $35 at one point.
I managed to recover my poise a bit later and made $250 back with a short in MMS and a scalp in ARM when it had a little spike to 17.80. Then I make another blunder putting on a trade in CME, a $500 dollar stock. I lost $118 on a 200 share position. I was back under $200 again, and I was getting annoyed. I had a great entry in ESE but messed up the trade by getting out too soon. I was in at 45.19 When I was up over $200 again I was looking for a reason to get out of the trade. When a 4k offer came in I got out at 45.40.
I was up $250 again after the ESE trade but after some churning I am $180 for the day. I have this habit of watching my pnl and it is affecting my trading. Focus on the setups and the money will come.
- 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.