Going Up!

Posted by Deb | Day Trading Journey | Thursday 16 September 2010 5:55 pm




Going Up

Today was another good day: I made $112.5 over 2 contracts. It seems my trading is getting back a good direction. I hope it continues this way. I don’t know if I should hope for another day of loss to excercise my resolution on not letting my losses growing too big, or just go back to regular trading. If things continue as they are now, I think I will go back to live trade after the new year’s holidays: This Saturday is Yom Kippur, then we have the holiday of Sukkot – so maybe I will try the last week of September.

Anyway, as always I have to run off to get my son. Ciao!

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Low Profit Again

Posted by Deb | Day Trading Journey | Wednesday 15 September 2010 7:17 pm

Today I didn’t have much time to trade. My kids went to try a new enrichment class (building model aircraft), and I tried to trade while they were there. I entered a long position with 2 contracts, and exited shortly after with a $50 profit. As always, waiting a bit longer with the second contract could have given me more. Though today I don’t think I really had any way to see that, so I wouldn’t consider it as my mistake, at least not for my current stage. If I had more time I could have done one more position, but I had to go and fetch the kids. Never mind, a profit is a profit even when it is small.

Actually, I think I will feel I am really starting to get it when I have a small loss. Then I will know I have mastered the skill of getting out of losing positions on time, and not letting the profit grow to be a giant loss. If I make profit and lose on the same scale, it will be ok, since I have much more days of profit than days of loss. The problem is when the losses are on a much larger scale than the profits, so that a bad day can erase the profit of whole week or month.

If I will close a day with a small loss, I will feel bad for the loss but I will know in my heart that I am going on the right direction. Funny, isn’t it?

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Frustrating!

Posted by Deb | Day Trading Journey,single motherhood | Tuesday 14 September 2010 8:36 pm

Today started well: I opened my platform, took me about 6 tries till I got a good connection. I wanted to do my trading fast. I got into a short position with 2 contracts, but since the general direction was up I got out of it fast with a profit of $50. Then I waited for a good opportunity to go in again in the right direction, and very soon had the opportunity. I entered with one contract, thinking of adding another one shortly if everything went well.

The market was having a struggle on the point I entered. I waited patiently, but then my daughter, who wanted me to take her out, came in. She is an ADHD child, and didn’t have today her after-school program so was getting bored and nervous. She threw a full-blown tantrum, shouting, crying and not letting me think clearly. I saw I had no way to trade this way, so I quit the position quickly with only $12.5. Minutes later the market’s struggle ended, and the market was flying up, I could have made another $100 very easily. At least it was only the demo, otherwise I would have so angry at my daughter!

I still was very angry at her, and frustrated. I am finally feeling my courage is getting back, and a good profit today would have given me a good boost. Now my going back to live trade will be delayed some more.

The time difference between NY and Israel, which makes the trading here better only on afternoon hours, is really annoying. It could have been so much easier to trade in the morning, when the kids are at school!

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Trading Rules and the Mitzvot

Posted by Deb | Day Trading Journey,Judaism | Monday 13 September 2010 5:27 pm




It’s been 6 days since I last posted here. The new year, and the weekend, gave me a long break.

Today I had one good position, with 2 contracts, and I got $112.5! I’ve had much better positions not so long ago, but for the last few weeks, that is a good improvement. I hope it is getting back to me, I really want to go back to live trading soon.

During this long break, I have been thinking a bit more about something that I have been thinking about lately: As an observant Jew, I am used to live by rules, the rules of the Torah, known also as the Mitzvot. So why is it so difficult for me to follow the rules of day trading? Why do I find myself again and again breaking my own rules? As a person who is accustomed to live in a more disciplined way, I should be able to have the self-discipline to obey my own rules!

One answer to this, is that I am not 100% sure of my rules. I doubt if if they are correct, if my limit of profit is right for me, if waiting a bit more before quitting a losing position won’t let the market turn around and make the position a prfitable one, etc. I hope that my reading more and more books and articles about day trading will help in this regard, as they all seem to point to similar conclustions: Risk managemnt is essential to good trading, and even if in a few occasions breaking the rules gives you profit, in the long run it is better to have strict risk management rules.

A second answer, I am embarrassed to say, is that in the last few years, since I am a mother, I have been less strict with myself in some of the mitzvot. The Torah itself does give mothers of young kids a break, as they are busy with their children, but sometimes I have stretched it too much. It is difficult to be a single mother of 3, and sometimes my kids and my sanity seem to dictate to me to be more lenient or relaxed about some of the mitzvot. Now my kids are not infants any more, and I suppose I should be more strict with myself again, but it is sometimes hard to get back to it.

In this regard, acquiring the discipline to go by the trading rules may be beneficial to me also in my other areas of life. Maybe I will learn again the art of discipline, which will help me also in my religious life. That can be a very good side-effect of trading!

rules checklist

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A Day of Mistakes

Posted by Deb | Day Trading Journey | Tuesday 7 September 2010 3:38 pm

After a long Labor weekend I finally got back to trade today. I opened the platform and graphs and so opportunity for trading: The market was trendy today, had gone down beyond the S3 line, so I was afraid to enter with a long position. But the current state really called for a long position, as it seemed the market was trying to get a correction to its deep dive.

Finally I lost my patience and entered the market with a short position when I thought I may have an opportunity for that. First mistake: Trading needs patience. The market had a bit of a struggle in the point in which I entered, but then it went up and my position started to lose. It approached a resistance line, so I put an order limit there, and went in with a second contract. Second mistake: I already have seen that adding contracts to a losing positions should be done only when there are very strong indicators that the market is going to change its direction soon.

The market continued to go up, making my position lose more. Finally I waited for it to go down a bit and quit with a loss of $112.5. After a few more minutes I entered with one more contract to a long position, but as the market was not clear in its direction I quit very quickly with one pips of profit, lowering my loss to $100 on 3 contracts.

At least I am proud of myself of quitting this position and not waiting more for my loss to become even bigger.

I am not sure if I will be have the time to trade tomorrow, as it is Erev Rosh HaShana, eve of the new Jewish year and I will be busy preparing for the long holiday (till next Sunday). So if I don’t, Shana Tova – Happy New Year to you all!

man blowing shofar

Man Blowing Shofar

P.S. As I was looking for the image of the Shofar above, the market had finally gone down and I could have made $50 of my first position. Oh Well…

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Improving

Posted by Deb | Day Trading Journey | Friday 3 September 2010 5:36 pm

This will be a very short post, as I have lots to do today – the Shabbat is approaching quickly, and my eldest has his birthday tonight and I have to bake a cake.

Today again it took me 4 tries till the Transact platform worked. The Sierra still has problems and I have to refresh it every few minutes. Anyway when I opened the platform the market was in a correction movement, going down after a very big climb up. First I put a limit order with 2 contracts, but then got scared and changed it to one. When it finally caught I decided to add a contract (at last I am adding a contract to a winning position!). Another 3 minutes passed and I quit with $75 profit. Again, waiting a bit longer would have yielded another $37.5-$50, but that was enough for me for today.

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More of the Same

Posted by Deb | Day Trading Journey | Thursday 2 September 2010 6:20 pm

I really don’t have much to report today. As the title says, more of the same: My internet connection is still a little problematic, but functional: After about 3 tries I got a good connection. The Sierra also has yet its problems, every few minutes I refresh the connection to update the graphs.

The market isn’t moving much, so I got $50 on 3 contracts.

I do want to write more about the book I am reading. I feel I am getting many insights from it, and I will have to reread it a few times. I will write about it some other time when I have more time.

As I am writing now the market is finally going down, so I could have made better profit on the position I was in. Though I don’t think I did a mistake: The market was stuck on the same place for too long, till I was not sure any more what direction it will take. It was a matter of gambling, and currently, with the small account I have, I don’t feel like gambling even on the demo.

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