Bad Trading

Posted by Deb | Day Trading Journey | Tuesday 7 December 2010 1:02 am

Today was a bad trading day.  I am really embarrassed to tell how stupid my trading was today.  It was as if I was playing with the demo instead of trading live.  I probably should have been trading on the demo.

When I entered a position it was not clear which direction I should be entering in, so I shouldn’t have entered it in the first place.  I entered a short position, but the market went up.  I added another contract, but the market went up more.  Than it finally went a bit down but no enough, and I decided to quit on one contract.  I was at a loss of $37.5.  Soon after the market went down more and I could have quit with a profit of $50 on the second contract, making a net of $12.5.  That had meant a very small loss, because of the broker fees, so I waited for the market to go down one more pips.

This never happened.  The market went up again.  I again added another contract, but finally after a very long wait had to quit with a loss of another $12.5, making a total loss of $50 over 3 contracts. 

This position had been very long, wasting my time and patience.  When I finally quit it was because my kids were already getting impatient, wanting to eat supper.  I really should have a time limit for each position.

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Chanukah

Posted by Deb | Day Trading Journey | Thursday 2 December 2010 4:23 pm

The festival of Chanukah has started last evening, and I don’t have much time to trade. Between all the childrens’ events, and the holiday we are going to take starting tomorrow, I don’t have much time for trading.

Today I did find some time for trading, though the market wasn’t moving much, and didn’t have any definite direction. I made only $50 over 3 contracts. Next time I will be able to trade will probably be only next Wednesday.

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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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