I took it easy today. I just took some $40-50 scalps since I had no grasp of the market direction. I made one mistake and lost 66 cents on 100 shares. I bottomed fished LDK and lost money. This trade reminded me of my FCX trade last Friday. I was sitting on some profits and decided to get greedy. Stock reverses and trades back to my entry price. I hold on and end up taking bigger than expected loss.
New rule: When a profitable position reverses and comes back to my entry price, I will close the trade.
- 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.