I lost a big chunk of my gains from yesterday. There were 2 ideal setups to get long. The bounce from the lows at 10:45 and the second leg up from 12:45pm. I missed the first leg up and I was frustrated so I ended up churning. I had a lot of impulsive trades today. One big loss came from shorting POT when the futures spiked down at 12am. I shorted 200 shares near the low and covered 85 cents higher for a $170 loss. I was trying to call a top, and I wasn't even following the stock.
I was down over $400 after the trade and I was not able to trade with conviction. I let many winners go because I was doubtful. I was able to come back to around a $150 loss when I caught a nice move in CRL. After that gain I just piled on losses steadily till the end of the day. I made another impulsive move by buying 500 STP right near the highs at 33.93 and the stock reversed fast on me. I ended up selling at 33.65, putting my pnl to a new low.
One day I trade well and I lose all discipline the next day. I think the biggest reason for my over trading is because I kept thinking of the moves I missed. Usually after a big move the market consolidates and chop around for another move. I wanted to make something happen badly so I end up trading during a range bound period and all I get is chop.
- 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.