Another Spoon

Posted by Deb | Day Trading Journey | Tuesday 30 November 2010 3:04 pm

This week is a very busy week for me. Lots of activities for the kids, lots of things to do. Yesterday I didn’t really have time to trade. When I finally did try, the market was very low. I wasn’t sure if it was still closed for Helloween, or if it was just my connection. Anyway I decided to take the day off trading.

Today I traded a bit in the morning. I was very cautious, not wanting to lose again after Friday. The first position was on one contract in the long direction. Unfortunately, the market didn’t seem to go up. I quit in the same price I went in, making no profit and losing only the broker fee.

The second position was a short one. I meant it to be on one contract, but somehow the platform’s response was too slow so I hit twice and go in with 2 contracts. The market was very slot to go down. I quit with the first contract after 2 pips, making a small profit of $25. The second limit order was after 4 pips, and the market got there but it didn’t get caught. Then the market went a bit up. I was quite sure it will go down again, but was still very cautious so I quit on that contract also taking only 2 pips. So the net was $50 on 3 pips.

(A few minutes later the market did indeed go down, in more than those 4 pips. Of course!)

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Putting the Stop Loss in the Wrong Place

Posted by Deb | Day Trading Journey | Friday 26 November 2010 11:44 am




Today was an annoying day. I again traded in the morning, when everything was extremely slow. The indicators indicated I should take a long position, which I did. But it didn’t go up enough for me. I added one more contrace to make a better profit ($37.5 on one contract wasn’t enough for me, see how my expectations change fast), and then of course the market went down. I didn’t want to add another contract to average the loss, as my account is low, but I did put back the stop loss towards the lowest suppost line. But as the market drew close, I was afraid to lose too much. I put the stop loss only 2 pips under the lowest support line, instead of 4 pips lower as I was taught to do.

Of course, the stop loss caught, and I remained with a loss of $287.5. I couldn’t let the situation remain as it is, so I continued to look at the charts. At that point, to my dismay, the market went back. Had I remained in the position I wouldn’t have lost at all. Things were very slow, but at last I got in with another contract and cut the loss to -$137.5. I then decided to add one more position, but as the market was swaying back and forth I exited this position quickly at the same point I went in.

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I am trying to learn what could be learnt from this. One point is of course putting the stop loss in the right place. But for today, I didn’t want to move it any further. With my current shrunken account, I didn’t want to get to a potential loss of over $300.

A second point is that of waiting to long in a losing position. When I guess the market will go up, I can either add contracts to even out the loss or get out of it and step in again later. Waiting with a big loss is stupid. But that’s easier said than doen. Again, with my shrunken account I didn’t want to add any more contracts and make the risk even higher, and running out of a losing position is a good idea, but psychologically going out after a certain point when you see a good chance them market will soon change direction is difficult. As the saying goes, a wise person doesn’t fall into the pits a clever person knows how to get out of. I shouldn’t have gotten to that point.

So the main mistake as I see it is my initial greed. When my first contract was not going beyond a profit of $37.5, I should have quit immediately. I shouldn’t have waited for the second order to get caught. Possibly that is a good strategy when the difference is one or two pips, but not more than that.

OKay, I hope the lesson was learnt. At least I was able to make the loss a bit smaller, so instead of it being 2 steps back after one step forward, it is one step back after one or two forwrard. That is something too.

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Another Small Step

Posted by Deb | Day Trading Journey | Thursday 25 November 2010 12:58 pm

Today I again decided to trade live, and in the morning.

Trading was even slower than usual, probably because of Thanksgiving. Anyway things looked less sure today. I guessed the market was about to go down, but didn’t want to bet on that so I just closed back my Transact platform and left only the charts open.

Some time later I took another look and saw the market had indeed gone down. I decided to join the party and opened my platform, and quickly entered a short position. Of course, nothing went smoothly. The market went a little bit up, and I entered a second short contract. I waited for quite a long time, during which the market at some time went up, and at the highest point I was at a potential loss of $87.5, which is more than I could allow myself now. But soon the direction turned down again, and I waited and waited. Finally, I quit the first contract with a small loss of $12.5 and waited for the other contract to grow more profitable. Indeed it did. Finally I quit on the second contract with a profit of $75, so the total was $62.5.


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A Slightly Bigger Step

Posted by Deb | Day Trading Journey | Wednesday 24 November 2010 1:45 pm

It seems I am back on the live trading track. I traded today in the morning, when the official market in NY is still closed. I opened first the Sierra charts to see if there is any movement and to decide if I should trade live. The movement was fair, and the indicators showed the market is on its way up.

I opened the trading platform, and entered my first position with one contract. About 5 minutes later I was $50 richer. I debated with myself if I should try again, and decided things looked pretty sure. I entered a second position, and again made $50.

Again I was pondering if I should try again, but decided enough is enough. The market seemed still going up, but I decided that was enough greediness for one day.

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Small Steps

Posted by Deb | Day Trading Journey | Tuesday 23 November 2010 3:49 pm

Today I was courageous. I had time to trade quietly, when the kids were not yet around. I am getting used to trade in the slower pace of the mornings here. I opened the platform directly in the live mode, and waited for an opportunity to enter a position.

To my disappointment, I opened right after a major diving down, and the market was now unclear, stamping without a clear direction. It seemed to not have yet finished its dive, so I finally entered with a short position. The market was again stamping back and forth untill I finally exited on one pips. I didn’t want to take risks, I am not that courageous, and anyway my account is too small now to risk much.

Shortly after the market was going down again. I entered again a short position, and again exited rather quickly – this time after 3 pips. The market continued to dive down, but I had already $50 profit on 2 contracts, which I felt was enough for the size of my account and my failing courage.

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Didn’t manage to trade much today

Posted by Deb | Day Trading Journey | Tuesday 23 November 2010 12:25 am

Today was a busy day. I tried to trade when I got home on the afternoon, with one kid, although I knew it wasn’t a good time: I soon had to go out and fetch her brother. Since I knew there wasn’t enough time, I didn’t even think about trading live. I opened the demo and entered one position. THe market took its time, and my older kid came in to my room to practice his guitar with me as an audience. Not the best environment for trade.

I exited one contract with a profit of $25, and left the platform open while I went out to fetch my other son from scool. When I came back the connection with the server was already lost, showing that at the time of lost connection the open contract was making $25. As it was the demo, closing and reopening the platform meant losing this position.

I waited for a good opportunity and entered a second position. The market again was taking its time, and when things finally seemed to move in the right direction both my younger kids came in to get me to drive them to their D&D class. I closed the contract with a small profit of $25, and went out. How can anyone trade with so much disturbances?

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The Middle East Conflict by Dennis Prager

Posted by Deb | Day Trading Journey,Politics | Sunday 21 November 2010 11:37 am

On Friday I didn’t do any traing, in case anyone was wondering. Fridays are now too short here, with the Shabbat starting at 16:00. Had I been already a confident trader, I may had paid for somebody to do my housework on Fridays so I can trade, but as it is I prefer doing my things on myself. I had no patience for playing for the demo, and didn’t have the time to sit and trade seriously, so I just didn’t do it.

Tomorrow, Monday, I will probably start out with the demo. I am not sure if I will do live trading. Probably it would be best to wait with that a bit more.

Anyway, I wanted to put here a nice vedeo explaining what is called the Middle East Conflict:

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