Another One of these Days…

Posted by Deb | Day Trading Journey | Monday 22 April 2013 4:59 pm

Lately I write here only when I have bad days. Well, this is another such day…

In the morning I had a quick session, trading on one contract and making $25 (2 pips). I was glad and decided I will try again in the afternoon.

I started again an hour ago. It seemed the market will soon be going up, so I entered a longish position. The market was not quick to go up, and meanwhile I got a few phone conversations making me less alert to what was going on. Finally I got frustrated and quit on a small loss.

Then I entered on 2 small positions and reduced the loss to 0, although of course I still had a nominal loss of the fees.

I lost track of the time, remembered only there was a financial report due on 17:00, so I was not careful enough. The market was going up very quickly, and I was suprised what had happened and decided to join the crowd, expecting to make a small-medium profit just to erase the fees lost. But then, boom! The market turned around. It took some time to realize the markets in the US had just opened, and I was not supposed to be in a position. Till then I was just sitting here, looking at the market in amazement.

I won’t tell you how much I lost, but it hurt. I hope not to be so foolish again in the future!

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I’ve Done it Again

Posted by Deb | Day Trading Journey | Friday 12 April 2013 5:15 pm

I had another day of stupid trading, which cost me over $300.

During the morning I didn’t have time to trade. I did think about trading, phantasizing about the profit I can make, and was very optimistic about my trading.

I opened my platform at about 14:30 Jerusalem time. I had still a lot of things to do before the Shabbat, so I didn’t have much time. I saw there was an opportunity for a longish position, so after some minimal checking (of resistance / support lines) I decided to enter with one contract, giving myself a big gap for the stop loss. That was my first mistake of the day – entering too quickly. I should have waited some more time before entering a position.

Only after entering I remembered I should be checking times of financial reports. I wasn’t too worried as it was still very early New York time, so I no report should be expected in the next few minutes. I saw I had another hour till the next report, and hoped I will be out of the position till then.

The market went against me, so I entered with one more contract a bit lower in the graph. I though the indicators were still good enough for expecting the market to turn around.

Well, it did turn, but it rise enough to give me a good profit. There were a few instances I could have quit the position with a profit of $12.5 on the 2 contracts, which would have given me a small loss because of the fees. I told myself this is my opportunity to quit with minimal loss, but foolishly I waited longer to see if I could get some more profit. I should have quit with at least one contract at this point. That was my second big mistake.

Time went on, the market went further down, and the time of the report was getting closer. I could have quit with a loss of $150 on both contracts, but I waited. I resigned myself to see what the influence of the report will be – for me or against, and accept the results whatever they will be. Of course, as Murphy would have predicted, the market went further down and I lost.

Foolishly enough, I decided to enter one contract in short position, to take advantage of the quick merket. That was my next mistake. At such a time the market is totally unpredictable, and I got scared very quickly loosing a bit more.

Now I am angry at myself, and frustrated: Will I ever be disciplined enough to trade? Is futures trading for me or should I give up?


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It didn’t work today

Posted by Deb | Day Trading Journey | Thursday 4 April 2013 1:20 pm

I tried to work today to trade in the way I described yesterday: not to shy away when the market goes in the opposite direction. If I see a strong indication the market will eventually turn around, instead of quitting the position with loss I will add contracts to “average out” the loss.

I know a wiser way would be to quit quickly with a minimum loss and then enter again in a new critical position. That didn’t work well for me for psychological reasons: After one loss I felt it was a “failure day” and was afraid to enter a position again, or entered a foolish position making a second loss. On the other hand, when averaging out, if the market did turn around I usually made a bigger profit than I would have done just waiting it out without adding contracts.

Today I started out with a good short position. Quite quickly I took 3 pips with one contract, and waited for my second contract to be caught in its take-profit point. Before it got caught the market turned around.

In other such occasions I would at this point take the profit I can and quit. Today I decided to try and wait it out, and averaging with more contracts.

Well, this didn’t work out. The market went up and up. I added 4(!) more positions – something I almost certain wouldn’t have done on live trading, but finally quit when the losses got to high.

After closing the Transact platform and charts, I decided to look again and try to see if opening more charts such as the DAX, could have given me an indication to the market’s rise. Well, I couldn’t. The DAX and the S&P were going up together. What I did see was that the market did build a new critical point, just where my quit the position.

I entered again in a short position in the critical level. Again the market was not going down quickly enough, going up and down, so I finally quit, but this time with a small profit.

Conclusions? Well, I guess the averageing out method is not good, unless you have a real big account and can tolerate waiting out on big losses. Even than you will sometime have to quit on real big losses. Waiting out on the few contracts with which I entered is better, as the loss is not so big, but the chances for loss are bigger as the market will not always turn back strongly enough, at least not quickly enough for my patience. I guess running away in time, with a small profit or small loss is still the right solution, with the conviction and patience to wait out for a second chance.

What can I do when I don’t have the time to sit on this all day? I don’t know. I will be happy to hear from other novice traders for their experience.

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After writing this post I went on to check my eToro account. Great news! My favorite guru (a guru in eToro is a person from which you chose to copy trades) has made a fantastic profit over 3 positions he had been keeping for almost 3 days. Yesterday and the day before these positions were in a bad loss, but the market had finally changed.

What do I learn from this? This person waited out for the market to turn as he predicted. He didn’t give up. On the other hand, he did not add contracts when the positions were in loss. I should probably learn from this. Only I couldn’t wait for so long, due to the leverage I am having on my trades. My account is big enough, so I have to close my positions on the same day. Maybe I should switch to FOREX exchange…

eToro
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Back to Old Habits?

Posted by Deb | Day Trading Journey | Wednesday 3 April 2013 11:31 pm

I have made a long break from trading for the holiday of Pessach. Yesterday I went back to trading on the demo.

I am discouraged, not sure what I should do about trading. For some reason I was sure this time around would be easy, but it has not been so so far. Yesterday I again had a small loss. Today, I went back to my old habits, which have helped me make nice profits some time ago, but have also led to my ultimate failure in the last time around: I added more contracts to a failing position to “even out” the loss, and waited for the market to turn around to my original direction.

It worked. For a few minutes my loss was growing to $250, but than the market turned around and I quit with a profit of $100.

Does this mean I should go back to my averaging-out method?

On one hand, it seems this method usually works. On the other hand, when you do lose out while adding more contracts, you lose a lot. You need a real big account to be able to wait for the market to turn around.

From my experience in eToro, I see I am not the only one using this method. I guess I will continue to use it at least sometimes, but try to be more careful. Also, I don’t want to let my positions to drag on for too long.

In any case, I intend to continue with the demo for some time until I feel I am doing better.

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Didn’t Trade this Week

Posted by Deb | Day Trading Journey | Sunday 24 March 2013 2:50 am

This past week I took off trading. After losing again last week, I decided to take some time off. This week has been very busy for me anyway, with Pesach coming around the corner, and some other investment I am getting into. I will probably go back to trading on the demo this week.

I don’t want to give up trading, but it has been difficult. I was so sure that this time around I will have it easier and will be making money easily, but this hasn’t been so. I should probably go back a bit more to the demo, and possibly also take a one-on-one class to learn what I am doing wrong.

I know it is a question of finding the right method for me, and than discipline. Last time around I found a method that worked most time, but it didn’t – I lost a lot which made me get out of focus and lose more. Now I have to find a better method in which I can lose less when I lose, but continue to make profit in most times.

Meantime, I am also investing in eToro – the social investment network. In some ways it is therapeutic for me, as I see how other people are doing – making money for a few days, losing on others. I found there one investor (rohaann42) who is really great. Even he lost one day the profit of about 5 days, but usually he is gaining quite a lot. I am copying him and make nice profits from his trade.

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What Did I Do Wrong Today?

Posted by Deb | Day Trading Journey | Monday 11 March 2013 8:25 pm

I played by the rules, it was the market who ignored the rules :(

Actually, there was one rule I had decided about lately and I didn’t obey today:  The position stretched too long, over 3 hours. I should have stopped it.  When a position doesn’t end after 30 minutes, it is probably a sign the market isn’t with me. Staying in the position made me have a substantial loss and waste my day.


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Summarizing this Month

Posted by Deb | Day Trading Journey | Thursday 28 February 2013 11:57 pm

For those wondering, I did achieve my minimal expectations for this month. I did stay even, actually I did a bit better: I got a net profit of $100. Not much, but it is something for a start.

I haven’t had much time to trade this month.  Monday was Purim, a happy holiday with lots of activities and no time for trade. Tuesday I did some trading (making 1 pips over 2 contracts, so it was actually a small loss due to the fees), and Wednesday I again was not able to trade: The electricity in my house went down, leaving me without my pc and with no internet. Very annoying.

Today I had some time to trade, and did better. I identified a nice resistance line and put a limit order there, but just when the market was getting there my kids needed a ride to the movies. I debated with myself if I should leave the order and let the position manage itself, but decided against it. Of course, when I came back I found I could have left it, it would have made me over $100.

By that time the market was going down but I was not sure enough about were to enter. Finally I entered on one contract and made 5 pips – $62.5.

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