My winning streak ends with a bang. Yesterday I kept trying to short on an uptrend and today I tried to go long in a downtrend. I lost over 650 trying to play bounces and the rest on my ill timed short entries. My losses really snow balled because I put on some desperate gambling plays with 300-500 shares. I thought I can catch some 30-50 cent bounces on the fertilizer stocks but I never did. I kept saying they are weak because I lost money playing every bounce yet I do it again awhile later. Things got really bad when I bought 500 shares of MOS and my internet went down. I turned on my backup connection and I was down over $300. MOS bounced a bit and I got out with $180 loss. I was planning on buying TRA, but I was on the wrong order entry window and I bought MOS instead. After my MOS trade I put on another 500 share in AGU and lost $100. I am shutting down early. If I continue to trade I will probably put on more hail mary gambles.
Lesson: Do not try to play bounces on big down days. If I plan to go long I need to wait for the market breakout a base or reversal pattern.
- 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.