Wednesday, April 18, 2007

A lot of shares, no progress

I was taking it easy today. I made around $35 and was content with being green. Then I got two chances to make $60 on a trade in WLP, but I blew it. On both trades my average cost was around 84.78 and I had 300 shares. Stock goes up to 85 and sells off stopping me out with a loss on the first trade. Then I get back into the stock with an average price of 84.80 again and ride it up to 84.99, but I was greedy again. Stock sells off and stops me out again.

Then I saw the stock go back up again and I became the sucker by buying 300 shares at 85. Stock sells off and I lose 10 cents on the trade. My small gain from earlier is erased and I was down for the day. Emotions took over and my trading degenerated into scalping for nickels and dimes. I lost close to $100 trying to trying to pick a top on MTG. I finally caught a sell off near the end and was able to come back.


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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.