Tuesday, January 30, 2007

A lesson that I need to remember

There were many opportunities today. I happen to be in a few but I messed up the trades. I got into the trades but I was worried that my stops would be hit so I got out of them prematurely. Then the stocks rockets away without me. I need to stick to my stop and let the trade work instead of second guessing my entry.

Here is one of the trades . I got into AXE on the break of the 4th bar. The stock had nice spike but traded all the way back down. I saw my 45 cent profit evaporate and my winner turned into a loss. I got out on the 6th bar right near the low of the bar with a $63 loss. The stock had an awesome move and I was left out.

I had a nice gain of $650 today but it could have been much better if I stuck to my stops.


Flatwallet said...

Dude...what's going on?...whatever it is hang on to it...Love these bad ass trades.

The Addict said...

that is a mistake I keep making over and over again too. Still, nice day, I'd love to see what other stocks you traded today. Great site.

onebadtrade said...

Thanks for the kind words. It's earnings season right now so there are a lot of gappers to play with.

I will face my true test when earnings are over around mid Feb. to mid April. Then I will really work on analyzing daily charts and coming up with plays like Pinoy Trader and Wall St. Warrior. That would be a challenge.

Dave said...

I'm going through a bit of the same thing. It's nice to lose less than -1R on trades that go against me, but it's come back to bite me at least 4 times this month. Dang. We'll work through it!

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.