Thursday, 25 April 2013

2-1: Good Carry Over From Yesterday

So........ I came in today a little worried. I haven't really put together real consecutive profit making trading days in live trading. I stuck to my routine of checking where SPY was in the pre market, setting my stock selection criterion, and finally, breathing. SPY gapped above yesterday's close, above inside yesterday's trading high. My trading bias as a result was LONG. I took a play in LL (a stock I traded yesterday) because of where it was trading on the daily chart. I didn't take any of my other long ideas as they were taking too long to set up.
My first trade in LL worked beautifully. I got in using the two minute chart and made 1.25%. I got out after it appeared to have trouble holding $81 (this was no where near my final target price). .I went back in LL thinking that the stock could move a little bit more today. I was being greedy. As you will see from the chart, I got out and the stock moved about .50 cents higher. I felt a little crazy because I didn't catch the whole move-that's the greed talking!!!. It topped, but I felt like it was more of a pause. Granted, there were a few times where I could have gotten out of the trade with a loss of 8 pennies or less; I strongly felt that the stock would rally. Instead of taking a $1.01 profit in the trade, I took home just shy of 0.80. I like many traders, have to learn to control fear and greed (because you cannot essentially get rid of them-they are a part of your genetic makeup!!). They only spell disaster for traders who lean on them.

I did take a trade on the short side(simply because of where the stock was located on the daily); the stock set up beautifully and I made a few good pennies in it. I worked this trade and while I didn't get out at the exact bottom, I got out just before the stock rallied past my short entry.

Here are the results:

What I like is that I am getting the hang of the entry setups and I'm somewhat improving on my exits. I still feel that at times I chase the stock on entries-I did it on the LL trade this morning, as I missed the correct entry by a few milliseconds. 

All in all, I'm glad. My focus has improved dramatically, and I am more comfortable getting in trades (I still have to work on this). I still have to work on my focus when it comes to being in a trade (I do get nervous, anxious, happy angry etc at times), as well as focusing on my exits(you can't call the bottom, so its easier to wait for a pause in the stock to get out).

I will try to keep this up tomorrow. Until then.........

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