Yesterday I nearly got whipped and I was lucky to come out unscathed. Today I was asking for another dose of pain. I was watching STP at the open and the stock looked strong. I was playing the stock from the long side but my entries were terrible. I went in small at first and then added more shares as the stock went up. I would have a good size position and be in the money only to watch it reverse on me. The stock would go through my average price and I would get out with losses. I had some wins but my losses far out number my winners and I lost over $200 on the stock alone. By 11am I was down over $300 again and I was pretty disappointed by my lack of discipline.
This is how my trades losing trades looked. Buy at the top and sell out at the bottom of a retracement.
My trades in STP. I traded 16000 shares in the stock.
I managed another comeback today with a short in CMI. After I came back I just stopped trading. Good thing I did because the market looked choppy and I would have lost money. I think I learned my lessons. I will have to see. If I were a candlestick maybe I formed 2 hammers this past two days and I should reverse to the upside.
- 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.