I had messed up another play today. The market was moving up and I was late to CMI. I should have been in at the 15 min OR breakout. I went in on the 30 min OR break instead. The stock shoots up 65 cents from my average price of 72.85 and then pulls all the way back. I was scared of a reversal so I got out of 200 shares near break even only to watch it bounce strong. I added 200 shares at the break of 73.50. I sold 100 shares at 74 and held on to my other 200. Then it did the same thing to me again trading back down to my average price. I got out of 100 only to watch it bounce. I added 100 again bringing my average price higher. I got stopped out eventually and lost money with my higher avg price. When a stock already made a good move and I get a quick 50 cents I should take it. CMI ran from 70.26 to 74. That's a huge move. I wasn't looking at where it came from when I picked my profit targets. The 1 minute chart shows how this stock was messing with me.
RRC brought my pnl up. Nice OR breakdown. This stock was weak relative to the market. I had it on my watchlist for a daily range breakdown. It formed a narrow range doji at previous day's lows and broke down. Stock drops over 50 cents but I was greedy. It bounced and I ended making 30 cents. I shorted again near the 15 narrow range lows at 63.24 and rode it down for a $100 gain.
- 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.