Thursday, August 12, 2010

1st day of my twelve day trading regiment

Today i traded 7400shrs and was up $50 or 5% of my equity. However net i'm basically flat because i have to pay for commission. I did realized sometime trading using the 1min and 3min time frame chart. Basically more signals to confirm the moves that i've been trying to catch ever since i started day trading back in January.

Below i'm recapping things that helped me stay positive in today's trading session.

1. Cutting losses - Today i traded with fear and thats one of the reasons why my gross P&L was positive. Every time a trade went against .10 - .20 cents i would let go. At this stage i can't afford no more mistakes so i have to perform

2. Taking profits - When i was green by .10 - .20 cents i did take profits because i'm trying to end the day positive and if i'm down for the day i try to manage my losses.

3. Positions - when ever i noticed i was correct on a move to the upside i would add an additional 100shrs. In the past i would size into a position when it went against me trying to bottom fish. Right now i realized that is not a good strategy and i should only add to a position when is going in the direction i expect.

4. Overtrading - One set back to day was that i did over trade while the market was in a range early morning. I also was in and out of positions because i wasnt certain in what direction the market was going to go. In the future i have to be more patient in waiting for confirmation in which direction the market will move.

Overall i think today was one good day of learning.

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