September 9th, 2015

Trades for September 9th.

$TTSH

Made some of the most ridiculous mistakes I've made in a while on trades today. Only traded one ticker: $TTSH. My first trade was a good one. After two mini-parabolics I would say, (can't pull up the chart). It had a little weak bounce. I shorted into it. I'm proud of this one because I got the guts to short strength, even if it was little to none. I didn't chase the short and actually tried to anticipate the move. That move being that it was exhaust after two run ups and quick snaps after them, kind of exhausting it. I got a decent move and covered it up. Left some on the table but I didn't care as I made one perfect, green trade. 

Then came eod. It had quite an unwind that I missed and began to have a little bounce into a potential end of day run. I watched it get above VWAP and break above a key level. But after that it didn't have much upside at all and started to basketball bounce on top of this key level. I figured it would break this level and break up this failed bounce. I entered a short very close to the break down level. My mistake here is a couple things. I shorted weakness when it looked like it was going to break down. I should have waited for it to bounce, even if that is a minute amount. This way I'm not shorting weakness and not covering strength which I tend to do quite well. 

Well, that's exactly what happened. It bounced 10 cents and I got out for a loss. 2 minutes after my exit, it dropped 40 cents. I didn't have a good entry and didn't have a good set risk. So, any little upside I was in the red and thought I would get squeezed so I covered out of emotion. The classic stuff move that works on me way too much. If I had a better entry at the top of the bouncing range, than I have more room to work with and im not shorting the weakness and getting ripped on.

Really need to figure out this getting stuffed, stuff. It is causing a lot of losing trades that would have turned into winners minutes, sometime seconds later. I guess it is all about the entry, which I will work on. 

On to the next one.

Trades for September 3rd, 2015

Trades for September 3rd, 2015

Today was a small red day for me after 2 actual trades. But I am very happy with my trading today so it is a win in my book. Why is that? Because I traded exactly how I want to.

I traded GERN after the open after it had a run up to 4 in premarket and then pulled back to the 3.60 area coming into the open. After the open it had a little rip and reject the 3.67 level, I think, and pulled back. I started a short 2 or 3 candles after the rejection which I think was a mistake/chase. My first mistake is chasing this down. It found a bottom and began a bounce so I covered up. Covering up I had to adjust my order and accidentally longed it which actually brought me back to even after the loss on the short. 

After the bounce, it rejected the 3.67 level again! I was excited seeing this because I had a set risk and a solid risk/reward set up. I got short after it and was in the green decent coming down. It then started to move back up and I got scared that I would lose my green and I chased the cover up which is just ridiculous. I then covered it up and actually was small red. Almost immediately after my cover it started to move down and faded all day.

Looking back at this, I realized that I just got stuffed. I got stuffed into chasing the cover on my short and actually lost out on those profits. This is a problem I have had lately. The reason this is a problem is because I'm having trouble with my entries. I don't know if I should wait for a pop to short or to just start right after a rejection of a level. I dont want to start after a rejection because I dont want it to just ramp back but I also dont want to wait for a pop because I dont want to miss the move if it goes straight down. 

I think I am better off shorting pops while I am still in account building mode and not money making mode. The reason being that I should worry about catching the whole move and like Nate always says, I should go for the base hits. Then when I have enough base hits on my record, I can go for home runs. Also, when shorting pops I also have more of a confirmation of a move and can be more confident in letting my positions work. 

Today was red one but learned a lot and ready for tomorrow. On to the next one. 

Jay

Trades for September 2nd, 2015

Trades for September 2nd, 2015

              Today, I'm making a recap after a very long time. Things still aren't working for me as a trader and I still think a lot of it is emotional. Every time before taking a trade, I find myself considering so many things in my head. I need to try and work on being mechanical and have a max loss per trade and a max loss per day. I need to become more mechanical in my trading and just have set risks.

Was reading @JGram135 's blog the other day and in it he poses the question, "are you really committed?". This kind of stood out to me because I want to become a successful trader but I don't study every night, I never make watchlists anymore, and I never do the most important thing which is go over my trades, winners or losers. Which from now on I am going to go over my trades and see what I did wrong. 

Today I only traded 1 ticker two times. $BVXV had an insane run up in the morning. Looking back, in premarket when it stalled going to the 6 mark, it was a good risk/reward trade. Risk 10 cents with the potential of a long ways down. I didn't take this but saw a lot of people that did. 

When it opened after the pull back to 5.40s from the top, it popped to 5.70s and it was game over from there. I got short in the 3rd candle. but why did I get short? I don't know. Sure you could say after the fact that it was weak but I didn't know shit about that at the time. I got short because I didn't want to miss the move and be left out of everyone banking on it. That's one of my major issues. I'm always so concerned about making money off big moves that I tend to ignore the technicals. I made money off the quick cover but need to note that this is obviously not a sustainable way of doing things.

After making a quick buck there, I wanted more of the action. I think my mistake here was not waiting for a rebound to short and just kind of did it randomly. My second mistake was that I didn't have a set risk. When you dont have a set risk, you tend to cover randomly. And I did exactly that. Literally after my cover, the stock never went higher than that, and it possible never will in it's life lol. 

Lessons:

1- Emotions - this one will possibly be a lesson in every one of my recaps. Stop thinking with emotion, stop thinking "How much could I make with this trade?" or "How much are commissions going to be on this trade?". Think like a robot: see the technicals, understand the technicals. Set your risk and take the trade. 

2- Risk- Reiterating this point. Need to have a set risk per trade, if you reach that risk..then get out of the trade. Then it has nothing to do with emotions and you are more mechanical. Before, I tended to end a trade whenever I 'felt' it wouldn't work. This is such a pathetic strategy once you think about it. 

3-Missing out- Don't be so worried about missing out on a trade, if you missed it, don't worry. The market isn't going anywhere.