I wanted to do some dummy trading today. NYX came up on my gappers scan. I ended up throwing my rules out the window. I tried to go long, short, long, short then long again at 83.39. Stock runs up to 83.87 and I was thinking "sweet, it's going up a dollar". The stock drops and I got out with a 1 cent gain instead. I lost over $100 churning the stock. Before that I lost some money in CAI and I also tried the QID. I stopped and asked myself what am I doing? What happened to my plan.
I got some focus plan and looked for some better setups. An opening range breakout on CNQ, and a break of small consolidation in AB.
Even with these two trades I was still down $115 as I made a mistake shorting NOV. The chart really looks ugly with all the +30 cent range bars going up and down, up and down. I took the trade because that's the only one setting up and I was looking for a quick buck.
Some scalps in MAC in the the afternoon helped me salvage my day. Looking forward to putting up more practice next week and I will be more selective.
- 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.