I had three above average days and was beginning to gain some confidence. I thought I am finally getting the consistency I want in my trading. I was dreaming of taking bigger size so I can get those $1k days. Everything was was looking good until the market gave me a blow and knocked me back down to the ground.
I was negative the entire day and more losses just kept getting larger. I just couldn't find anything today. Since there was a big crack in my discipline from being overconfident, I took trades without careful planning. I thought my trades would work out like the other days. I could have stopped myself when I was down $180, $250, $300, $400, or $500 but I kept going. I thought I could catch that one trade that would bring me back or cut my loss down. I began to take trades which I classify as low probability or bad trades. On some trades I knew I don't have a good chance but I took them anyway. Like all my other bad days my day ended in capitulation. I gave up at 2:30 when I lost another $60 bringing my losses to $700 for the day. I worked hard for my gains this month and I gave away a big chunk today.
- 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.