Monday, December 11, 2006

Finding my weaknesses

I traded small today. Most of my trades were 200-300 share positions. Even with smaller size I got a bunch of 15-20 cent hits. I found myself down over 200 bucks fairly quickly.

I think I got an idea what I have been doing wrong the this month.
  • My losing trades were impulsive trades. I would put on a position with a quick glance at the chart. I did not spend any time in watching the tape.
  • I tried to watch too many stocks.
I was able to make some of my money back. I am still down $80 for the day but I feel optimistic because I found what I need to do.
  • I did it by focusing on one stock at a time and watching the tape for low risk entries.
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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.