Thursday, December 21, 2006

Easier said than done

I had a plan. I was going to be very patient and buy or short stocks at important levels after I see some confirmation on the tape. I did not feel like trading today, but decided to do it anyway. I started at around 10:15am. I just wanted to take it easy and play around with 200 share positions and test my plan. I did not follow my plan. Instead of small positions I started trading 500 shares. Instead of waiting patiently for stock to come to me I was chasing trades again. I did not have any big hits but these 2-5 cent losses do add up. I also lost 4 cents on a 1000 position. I was down around $215 again. I thought I was going to end the month at break even but now I am down $215. I came to my senses again and followed my original plan. I came back and ended my day up 5 dollars.

I am going to end my year today. I start trading again in Jan. 2007. I am going to keep my mind away from the markets and enjoy my break.

6 comments:

Flatwallet said...
This comment has been removed by the author.
Flatwallet said...

OneBad,

Take alook at this. I don't know if it will be of any help.

http://www.esignallearning.com/education/marketmaster/default.asp

LP

wincity said...
This comment has been removed by the author.
wincity said...

Hi,

I came across your blog a while ago by accident when somehow I found you traded from the other side. Here's my comments.

I didn't mean to say what you did was wrong. But I feel that kind of trade is risky and the probability is less than perfect.

Just a view from a different perspective. Didn't mean to criticize you.

onebadtrade said...

Thanks for the article Flatwallet.

onebadtrade said...

Hi Wincity,

I am open to all comments and criticisms.

It's funny because I have the opposite view about your trading style. I am not that good at counter trend trading and I wouldn't try to average into a position that goes against me.

I know there are many ways to make money in th market and if what you are doing works, keep it up.

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.