Wednesday, January 14, 2009

Monday 12th and Tuesday 13th's trading.

As I expected, stocks seem to mess with my ability to trade- I have too many preconceived notions about the relationship between them and "the market". I end I'm tripping over my own emotions and making things more stressful and, above all, complicated than they need to be. Monday proved this as I sat down with that familiar conviction that "I'm going to trade today!" Got into my first trade (CELG) just before 11:00EST and jumped out of it because "it wasn't following the market"- of course it dropped some $2.75 within mins after my rash exit. To make things worse, I took a long in VMC which showed incredible strength relative to the market (from 11:20 -12:00EST) but failed to follow through, eventually stopping me out in the afternoon. I ended up breakeven for the day after having conviction in the SPY momoreversal in the last hour of trade. I've documented the reasons on the charts. I actually got stopped out after seeing 2R in my account only to jump back in to eventually net my risk over the two trades. Got out of the last part of the trade at the blue arrow-First target- after hours.

Today (Tuesday) I found the AUD/USD just as I flipped on the laptop in bed. It had already triggered so I waited patiently for a retracement before entering at 0.6635 (with a 0.6620 stop) I miscalculated my target by several points so only got 17 points out of the 30 that were available as my trailing stop got hit at 0.6652. The pattern "failed" overall...goes to show that you don't need to know what's going to happen next to control your risk and make money over time :o)

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