Friday, December 05, 2008
Back to the drawing board
Since mid September I have been in a slump and it has taken a toll on my psychology. Usually I have high hopes of making a profit every week and month but lately I am just trying to keep myself from losing money. I have no set plan and it seems that I have been trading a myriad of styles but I have not mastered anyone of them. I find myself breaking a lot of rules that I have set mentally, like no bottom fishing, picking tops, chasing, and forcing trades. I need a comprehensive plan that can define clear actions on what stocks to trade and what setups to take. My plan should also cover psychological aspects like managing anger, anxiety, and fear. I need to set my $ risk/share size and only increase them when my consistency increase. I am going to peruse my trading books again to see if I can find some insights.
- 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.