Tuesday, July 31, 2007

Daily Summary - I blew up today


I had a mini blow up today. I should have stopped when I was down $300, or $500 but I kept trying to come back. I was in a state of desperation so it is wiser to stop trading I guess. Let me see how the day started. I traded before there was an established range, put on my trades before 10am. So when the reversal time comes along I got crushed in all my longs. I also picked today to try holding my stocks till I get stopped out. I had a lot of chances to get out with small losses but I stood firm and I eventually got stopped out for large losses. If I have waited I would probably caught some nice shorts off the 10am reversal time. Then came the bounce and I kept trying to go long again in a couple of stocks but ended up losing some more. I did some crazy things and put on 500-1000 share positions. Those ended up hurting me a lot.

1 comment:

Dinosaur Trader said...


Sorry to hear about your loss today. I think it's the first time you are the basement dweller in the VO. I've been there plenty of times!

With the market so volatile, stops will have an easier time getting hit no matter how far they are.

I experimented with holding things for longer periods as well. What I found is that each trade is different... some should be held, but others you need to move quickly on. I don't believe you can make a hard rule like "I'm going to set my stops and let the trade play out" all the time. Each trade is different.

Sometimes scalping will work and sometimes longer term trades will work all within the same day. One thing never changes though, making sure you only take small losses.

Hope tomorrow treats you better,


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.