Big bounce today.
I watched GS all day -- as I should have, being the 'in play' name -- today's open was low of the day -- eventually going on to push up about 8 points.
MON had buyback news -- up 2 points.
It really helps to be in news-driven stocks as that's where the volume is.
Overtraded today with nothing to show for it.
I am mostly in cash, no big blow ups. I can continue on next week. Focusing on
1) support/resistance
2) order flow
3) market signals
4) risk management
Today I did well not to lose a lot. I did poorly not letting the one main winning trade move up. My initial ideas - -HUM and MON were good. So just need to follow through with picks like that.
Monday, April 19, 2010
keep missing:
I flagged HUM and MON as longs -- they both went higher.
Then I played around in SRS - got stopped out twice, third time WAS the charm - but I didn't hold long enough to offset the losses.
What I could have done better was look at the chart and define resistance - it topped out 4 cents above the 20 day MA -- a simple backtest. That would have gotten me in perfectly.
leaders are weak, XLY is weak -- this is a corrective market. The best ppl I follow are raising cash. I will not fight the trend.
Then I played around in SRS - got stopped out twice, third time WAS the charm - but I didn't hold long enough to offset the losses.
What I could have done better was look at the chart and define resistance - it topped out 4 cents above the 20 day MA -- a simple backtest. That would have gotten me in perfectly.
leaders are weak, XLY is weak -- this is a corrective market. The best ppl I follow are raising cash. I will not fight the trend.
Tuesday, April 6, 2010
not holding long enough
mistakes: buying weakness
selling out winners too soon -- over and over again -- not having the confidence to hold through.
Need to keep position size smaller.
Keep gravitating toward weak names -- which will require more time.
Entries often too high -- selling on pullbacks...
Need to have more conviction, smaller size -- and simply hold the best idea.
Overtrading into 3rd tier names. No need.
Need to focus on just a few names each day. Don't be afraid to do nothing. The moments of profit will be quick and violent. If it doesn't happen immediately... it's a sell.
selling out winners too soon -- over and over again -- not having the confidence to hold through.
Need to keep position size smaller.
Keep gravitating toward weak names -- which will require more time.
Entries often too high -- selling on pullbacks...
Need to have more conviction, smaller size -- and simply hold the best idea.
Overtrading into 3rd tier names. No need.
Need to focus on just a few names each day. Don't be afraid to do nothing. The moments of profit will be quick and violent. If it doesn't happen immediately... it's a sell.
Tuesday, March 30, 2010
one step at a time
Trading well past few days....
Taking very small gains... but they're adding up -- instead of watching long positions chop around for no gain.
What's working is -- being patient... assessing strength, particularly by watching volume and also, the overall markets for sentiment.
I am achieving my daily goals. I am managing risk well... the key was simply -- keeping track. It keeps you honest.
It's easy to buy stock dropping -- but the weakness rarely pays off. See how SKBI just kept going? Buying into strength is much harder than it looks.
Today was a particularly difficult day in the markets and I managed quite well. And there's lots of room to improve as well.
Taking very small gains... but they're adding up -- instead of watching long positions chop around for no gain.
What's working is -- being patient... assessing strength, particularly by watching volume and also, the overall markets for sentiment.
I am achieving my daily goals. I am managing risk well... the key was simply -- keeping track. It keeps you honest.
It's easy to buy stock dropping -- but the weakness rarely pays off. See how SKBI just kept going? Buying into strength is much harder than it looks.
Today was a particularly difficult day in the markets and I managed quite well. And there's lots of room to improve as well.
Friday, March 26, 2010
goals
Listen more.
Wait for the stock to tell you what it will do.
FOLLOW a PLAN, stick to it.
Buy strength: volume or above 20 day MA or both.
Enter / set stop - as it begins to move your way. Keep trades that immediately work.
Take profits.
Listen to the whole market before entering.
Wait for the stock to tell you what it will do.
FOLLOW a PLAN, stick to it.
Buy strength: volume or above 20 day MA or both.
Enter / set stop - as it begins to move your way. Keep trades that immediately work.
Take profits.
Listen to the whole market before entering.
Thursday, March 25, 2010
no edge
I have one account that is profitable:
I have made very few trades in this account.
I bought the best ideas.
I held through volatility and took big draw downs.
I held through large moves. I did sell one name for a big gain, one for a small loss.
Value investing has worked for me.
Daytrading has been mostly awful.
It's clear what will work in the future.
It may not be what I thought it would be. But it's what works.
I have made very few trades in this account.
I bought the best ideas.
I held through volatility and took big draw downs.
I held through large moves. I did sell one name for a big gain, one for a small loss.
Value investing has worked for me.
Daytrading has been mostly awful.
It's clear what will work in the future.
It may not be what I thought it would be. But it's what works.
Monday, March 22, 2010
chopped
Made many trades, had nothing to show for it.
Really gave it back by shorting... which I have sworn off many times. I am terrible at it. They are almost 95% losers -- every single time.
My winners were value names I know and trust, like YONG and ALJ -- both were bought on pullbacks. I know these stocks well. They were instantly in the green. I was comfortable with them the whole time.
This is my edge: buying value stocks using TA -- knowing the names well. This is what I learned. It's harder to trade names you're not familiar with.
I thought the markets would have turned today -- but I thought wrong. So I took many small losses that added up. Overall, I was up a tiny amount. With two trades in play (one down a bit, one breakeven).
I am now keeping track of everything carefully on a spreadsheet. I wish I had done this a long time ago.
Really gave it back by shorting... which I have sworn off many times. I am terrible at it. They are almost 95% losers -- every single time.
My winners were value names I know and trust, like YONG and ALJ -- both were bought on pullbacks. I know these stocks well. They were instantly in the green. I was comfortable with them the whole time.
This is my edge: buying value stocks using TA -- knowing the names well. This is what I learned. It's harder to trade names you're not familiar with.
I thought the markets would have turned today -- but I thought wrong. So I took many small losses that added up. Overall, I was up a tiny amount. With two trades in play (one down a bit, one breakeven).
I am now keeping track of everything carefully on a spreadsheet. I wish I had done this a long time ago.
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