Wednesday, March 07, 2007
A confidence booster
I started out very patient. I calmly looked through my scans for trades. I took my first trade at 10:20am. GYI caught my eye as it was setting up nicely on the 15 minute chart. I entered on the break of the 3rd bar and 4th bar for a total of 400 shares. The stock dropped fast and I had a 40 cent profit. Just when I was thinking about how much I would make if the stock hits the 1.618 extension, my profits evaporated. My stop was at the high of the 4th bar and I was quickly stopped out with a $71 loss. That set me off and made me reckless. I decided to go long but with each second of hesitation the stock runs up some more. I finally went 500 shares market and got filled at the top of the move. I lost another $127. I went long again when it held at 50 and lost some more. It felt like the market was out to get me. I almost shut down for the day.
With a loss of around $230 I found it hard to wait patiently for dummy setups. I resorted to scalping. I managed to trim my loss down to 80, getting in and out of CPA when it bounced at around 11am. I had a nice trade in FAF which gave me around $200. I ended my day with $130 in profits.
- 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.