Like most bad days, I was trigger happy and took a 65 loss on my first trade. It's a small loss so it wasn't a big deal. But before any noticeable setups occur I jump into MGA and took another 26 loss. I thought I'd watch DLB because it was setting up for a daily breakout. That stock took most of my time and it didn't go anywhere. I took a trade in BRS and that hit me hard for 238. I had 200 shares and lost over $1 in the stock. Then when DLB broke 42 I jumped in and it turned out to be a trap as it quickly reverses. That cost me another 60 bucks. I couldn't recover after that, and tacked on some more losses.
What I learned today
I got to take the best setups in the morning and stay on the winning side. I think the first few trades are the most important trades for the day. They can either help me or break me. And the latter happened today. Even though there were setups later on my mind was already working against me. I had CRL long but messed up by playing scared. Stock moves up over $2 from my first entry. I only made around $100 on the stock. UA offered a good scalp on the long side too when it broke 50.10, but I was too focused in CRL and I missed the UA trade. If I didn't have a big loss I could have played CRL better. Today's loss wiped up my gains for the month. I am starting with a clean state again.
- 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.