Wednesday, October 10, 2007

Daily summary


I did not catch anything and was able to keep myself flat until 11:45 am. I broke a cardinal rule by bottom fishing PCP. I saw the stock drop sharply and thought it had bottomed at 150 and so I went in at 150.26 looking for a quick scalp. A few minutes later I lost Lost $2.16 on 100 shares when I got out at 148.10. You think I would have learned my lesson after getting burned. I bought a 100 shares again at 148.42 and got out at 148.06. The stock drops to around 145 before bouncing higher. After these two dumb plays, I was pretty angry and was not in the right state of mind to trade. I felt desperate and wanted to make some money back. I only piled on more losses. Soon I found myself down over $500. I was about to quit for the day until I caught a little move in CAM and CNX which brought my loss down a little.

I see myself taking too many kinds of trades. I think the trades that hurt me the most are playing bounces and picking tops. I need to focus on 1 or 2 setups only. I sound like a broken record, because I probably repeated this many times yet I find myself doing sloppy trading.

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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.