In the past couple of days I feel torn between trading two styles. I want to capture bigger moves, but I am unwilling to risk more than 10 cents. Today I had a lot trades that would go in my favor 20-30 cents but I decided to let it ride. Most of them came right back and I had to get out with losses. If I had stuck to my scalping style I would have offered my shares out at 15-30 cents and kept my gains.
As the morning progress I had a few small winners and a bunch of losers. By 11am it seemed like nothing was moving and I thought of stopping for the day. I checked my pnl and found out I was down $178.
I think I got lucky today because TNH happened to be moving up so I bought 200 shares and made $160 on the trade. Later I had some gains on ESE which brought me some profits today.
I think in the coming days I have come up with a plan that would balance the two styles and fit my needs. Without that it would be hard for me to gain the conviction to increase my size.
- 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.