Am I Insane?

Posted by Deb | Day Trading Journey | Sunday 30 May 2010 10:53 pm

I am almost there. My investing account stands now on $4,889, meaning that probably on the next trading day the account will be restored to the $5,000 figure, after which I will see any added sum as pure profit I can withdraw.

As in the last weekend, this compulsory break from trading gives me time to reflect, and to panic. At the begining of the weekend, on Friday night and Saturday as was in the highest mood, fantasizing about my future profits.

Today I started to panic. I read an article some internet marketer sent me with tips for the begining investor, and one of the first tips is that you should not be investing the money you need for your daily expenses.

Am I totally insane? I not only invest my needed money, I am planning to live on the profits I gain. Isn’t that crazy?

To my defense, I can only say that I do not have much choice. There are not many high-tech jobs waiting for me in my current age (high-tech companies around here look for the young, under 35 employee), and even if I found a fantastic one, how will I have time for it? High tech companies around here expect their employees to be available about 18 hours a day! I need a flexible job, I need a job that does not take too many hours, I can’t work those hours. And anyway during this last month on which I sent my cv all over I have had a few phone interviews, but nothing had materialized. So I actually don’t have much choice, which does not help much to my panicky situation.

Ok, enough for this panic. There’s not much I can do about it anyway. I hope and pray this coming week of trade will be as good as the last 2. Amen.

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Todays Musings

Posted by Deb | Day Trading Journey | Thursday 27 May 2010 11:44 pm

The begining of my trading today was boring.  I set up my trading platform and my graphs software, watched the market for 10-15 minutes, then entered first with one contract, then with 2, and in 20-25 minutes I made $175 with 3 contracts.  That was enough for me, so I closed down everything and went on to do something else.

Then I remembered an outrageous bill I got today, and thought that maybe I should trade some more so that I can add to todays profits the amount of this bill ($125).  I debated with myself, as it is really against my rules (my self imposed rules of trade).

I decided to give it a try, and immediately saw why I needed the rules:  the market went the other way too quickly.  When it begun going up (and I entered with a short) I did my usually trick of entering with one more contract in a higher point so that a smaller shift of the market will be enough to make a profit, but the market continued going up and I was afraid to enter with one more contract.  My losses begun to grow more than I have seen in a long time.

In the end everything was ok.  The market went back down and I exited this position with a profit of $150 on 2 contracts.  But this did give me a scare;  I don’t want to go back to losing.  I know I should not jump ahead.  I would like to make already a bigger profit every day, I have debts to close, but jumping ahead may endanger the profits I have.

It is strange, it seems all this futures trading business is in your head.  Once I know the method, it is up to my psychology and my confidence in myself to make a profit.  If I jump ahead, it is my own psychology that will make me get unconfident and lose.  E.g., today if I have 2 contracts go back and make a potential loss of $100 that doesn’t scare me, as long as I am sure (or almost sure, nothing here is 100% sure) by all indicators that the market is going to turn back.  But if I were in with 3 contracts and the potential loss is already $150, with every pips making it growby another $37.5, that does get me scared and I may run out too quickly, making a loss instead of a profit.

Anyway, I do hope I will in a not-too-far future feel more confident (and also have a bigger account) so I will be able to make bigger profits every day.  If every day I would see a $325 profit as I had today, that would make me happy!

Sponsored links for today:

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The Mishaps Day

Posted by Deb | Day Trading Journey | Wednesday 26 May 2010 10:49 pm

Today I learnt a new word in English – mishap.  When I wanted to write this post I was looking for the right word and decided to look it up in a dictionary.  I hope I am using it in the right way.

Anyway, today everything went wrong, but it ended ok.  First, when I opened my trading tools software (I am using Sierra Charts), I somehow accidently moved the cursor a bit to the left so that the point of the right edge, which is supposed to show the current position of the market, was showing instead the position some time back (probably about 15 minutes back).  I saw there is a lack of correspondence between the charts and the market but couldn’t see what the problem is.  Due to this I missed the time when the market was diving down (though I saw it was coming and waited for it).  But I did see the market was getting near a support line, so although I couldn’t match it on the graphs I put one long limit order there and went in the market with one contract.  Since I couldn’t see exactly what was happening without the graphs I quit the position too early, but I did make $37.5 on it.

Than some time later I went into a short position when the market approached a resistance line and everything looked good.  The market climbed up a bit higher, but when it was going down I suddenly had problems with my internet connection.  There’s probably something wrong with my laptop.  Anyway, I tried to restart the connection to no avail, then took the laptop to the next room where the internet signal is stronger and I could reconnect.  Luckily, I had my profit order in a good place.  I possibly could have done better, but anyway I got from this position (on 2 contracts) $125.  So in total I got $167.5 on 3 contracts.  Not bad, especially considering the misahps.

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Disappointed

Posted by Deb | Day Trading Journey | Tuesday 25 May 2010 8:36 pm

Today I am a bit disappointed.  After yesterday’s profit I set my expectactions too high, and wanted to make over $200 every day of this week.  Well, this didn’t work.  Today I made $162.5 on 4 contracts, which means after deducing the broker’s fees I got $134.86.

Funny, last week I would be very happy with such a profit.  Only a few days have passed and  now I am disappointed.

So, what did we have today?  It was difficult for me to understand exactly what direction the market was taking, so I twice went out of the position too quickly.  On the first time I entered a short position with 2 contracts.  Then the market went up and I entered with another short in a higher position.  When the market finally went down I was so happy it was finally going down I exited with the original 2 on exactly the point I entered, so I did no make any profit on them.  The market went down a bit more and I made $137.5 with the third contract.

Since this profit wasn’t enough for my expectations I entered again some time later with one contract on a long.  Again the market was undecided, so finally I exited again a bit too early, and made only $25 on this position.

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A Good Start

Posted by Deb | Day Trading Journey | Monday 24 May 2010 5:35 pm

Today I made $225 with 4 contracts.  Maybe I am really getting the hand of it?  Maybe, just maybe I will really be able to make a good living from this futures trading thing?

I am afraid to be too sure of myself.  I am afraid I will do one day a big mistake and loose everything again.  I am afraid the market will start diving down more and will have too big fluctuations for an amateur like me to play with it.

I started the weekend feeling sure of myself.  Than I again become scared:  I was afraid I will start the week with loosing.  Than I calmed myself that if I just make small profits, everything will be ok.

When I started trading today I was very cautious.  With the first contract I made only $37.5.  With the second I made $50.  Than I saw an opportunity but was too cautious to enter, and watched the market go in the direction I guessed, where I could have made about $200.  Than I got my courage, entered a short with one contract, and then with the second in a higher point, and was sure of myself.  I knew what the market was doing, and indeed I was able to pull out with a good profit.

God, please make this go on!!!

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End of Another Week

Posted by Deb | Day Trading Journey | Friday 21 May 2010 2:31 pm

This week’s trading has ended in a fine note.  Today I made $125 on 2 contracts, with no effort.  Opened the trading platform, waited 10 minutes till the market came close to a support line (which was the minimum point of earlier today), and entered with a long on two contracts.  5 minutes later I was out of the position with $125.  Probably could have taken one or more pips, but never mind.

This ends my second week of straight profits.  Well, almost 2 weeks, as I did not trade on last Monday, so it is in all 9 days of trading.

I feel now like a mountain climber, stoping to take a rest at the nearest peak, looking back at what I had passed and turning around to see how much is still left to the next peak.  Or maybe a better metaphore would be of someone who is climbing out from an abyss or a pit, as that was were I was at the begining of this month.  My account now should be at almost $4000.  I have yet to climb back up to $5000 in order to have any real profits.  God only knows how much I need these profits.

I feel much more confident now after 9 days of profits only, but from my experience I know how easy it is to get too confident and have these downfalls again.  I really can’t afford having any more downfalls.

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Came Out OK

Posted by Deb | Day Trading Journey | Thursday 20 May 2010 6:24 pm

After an uneventful week, today was again a bit stressful.  In the morning things were going slow so I decided to leave it for the afternoon, when the NYC market is open.  Than my kids wanted to go out and have some fun, as today was their last day off from school for the Shavuot holiday.  We went out to the old city: we had a walk on the walls promenade around the old city – we went up on Jaffa gate and down on the Damascus gate, and then went to Zedekiah’s cave – recommended if you are in the area!.  Anyway, I had only a short time to trade, but just enough to not be breaking my rules.  (I did decide to be disciplined!)

The market was moving fast.  Although the market is directing today down very strongly, the graphs were showing that currently it was going up.  I tried my first contract in a “long”, but the market was going down.  When it finally got up I run away at one pips, only to see it going much highter 3 minutes later.

I tried again another contract, and this was better, so together with the first position I had already $87.5.  Last week I would have stopped at this point, but I did decide to try again, as all measures were showing the market will still go up.

I tried another long position, and the market dived down.  I didn’t lose hope as the graphs were showing an “up” direction, so I added another long contract in a lower point.  Again the market was going down, and I wasn’t sure of myself anymore.  But then it went up again.  As I was already stressed out I got out of the position quickly, so I made from both contracts $50 (making a total of $137.5 for today).  Not bad, but if I had been holding my breath for a few more minutes I could have made another $50.

So now I can breath again.  Another day of profits.  Not bad!

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