I spent a couple hours on Sunday coming up with a new trading plan. This plan calls for trading less and riding bigger moves. Check out Trader-X, Wall St. Warrior, and Pinoy Trader to get an idea of what I am trying to do. This will be my 3rd attempt at dummy trading. Let's see if I can make it work this time.
Today I had a bad start. I did not know that we switched to daylight savings time so I missed the first 30 minutes of trading. I thought the market was going to bounce so I took a couple of longs and lost money. I did not follow my plan. Later on I made my money back shorting CNX, ACI, WLT, TRA, AG. CNX and ACI were nice since they consolidated near the lows at around 12:30 and broke down. You can see nice low risk dummy entries there. I caught a nice trend down and made over 50 cents on most of my positions. I was able to let my winners run a lot longer than before. I only had 100 shares each of the stocks though. I am still not comfortable with wider stops of more than 30 cents so 100 shares is that maximum pain I can take for now.
- 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.