End of Day Journal (10-7-2010)

Summary:

After being on top of some big moves yesterday, I decided to do an experiment today. Entry rules were the same, but I was only going to exit if there was a big in direction move on high volume (exhaustion). Followed thru on the experiment on every position except the short on EQIX. I think I saw the 15 minute doji and my usual response kicked in before I could think about it.

I know this probably sounds crazy, but I wanted to know what it feels like to actually ride a move over several points. For one, being in position on a stock and waiting for nothing but the exhaustion move or stop put me on a different level emotionally and focus wise. I think this is going to help get me out of the fear based 'I better lock in these profits' feelings that usually accompany my exits and bring me to a place of objectivity.

The day's summary provides some interesting stats:

 
Per NT's breakdown I traded 42 times today. Actual trades number of positions held (open to close) was 23. My winning percent was at 17% but I grossed $1134 profit and ended up being negative only $280.

I only made money on two positions, ADBE and EQIX. I shouldn't of closed EQUIX, but it was a reflex reaction to the 15 minute doji. I knew before it dropped that it was the wrong thing to do. The profit on EQIX was only $0.30, which didn't count with the kind of numbers showing up. I added to the ADBE position 3 times (800 shares).

Amazing what one good move will do.

Perhaps the most interesting thing about today was that my trading became about trying to determine the stock's general trend when I opened the position. The assumption was that the stock would trend until fear/greed set in and I would get out. As it turns out, this did not happen once today. Or maybe I should say that I was not able to notice this happening once day.

But there was still plenty of money to be made. I sat thru several >$1 waves on VMW and CRM. Yesterday I traded with expectations and I got out early. Today I traded with no expectations and was stopped out most of the time.

A few of my entries were lacking, which is a little surprising to me because I had far fewer than I normally do, and I thought that I had been doing very well with them. Some were the result of ignoring the current market environment (all of AEM (3 entries), afternoon shorts on  CTXS and EQIX) and one was logistical (forgot the limit order on CRM). That makes 6 bad entries out of the 23; or about 26%. Not sure how I let this happen.

The plan is to try this a few more days. Again, part of me wants to become familiar with what it feels like to hold onto a big move. I want to become more familiar with what it feels like to have a position at the end of a big move and be able to gain some sense of how to differentiate between interim profit taking and the end of momo. I want to be rid of the nervousness that comes with holding a position and trying to lock in profit. I want to do more watching and soaking in. I also like the fact that I traded much less today because I held positions longer.

I am not sure if this will help my overall trading or not, but it feels like the right thing to do. Time and time again EOD review has shown the value in catching at least one of the big moves of the day. I don't know what this should feel like.

Trade well.

Details:

ADBE

Shorted this on the first entry and got stopped out when it flashed. It stopped trading for awhile and when it started again, I thought the long was a given.

AEM

Short on the new low, stopped and reversed; stopped again. Went short as it broke thru new lows on the next candle. Each stop was wider than the last.

CREE

I thought about entering again on the blue arrow, but then just decided to mark it. By then I should of been looking to enter the up trend. I saw the ascending after the stop. Q's and TNA had the same setup over that time as well.

CRM

The second entry was a mistake. I saw a potential short on the 2:00 but was late. I put a limit sell on where I would be comfortable with the stop and forgot about it.

CTXS

I entered on what I assumed was going to be a lower high.

DECK

Long on the candle change, stopped, short, stopped. Tried the short a few more times but the market had different ideas.

DVA

EQIX

I reversed on the 15, but knew right after i placed the trade that it was the wrong thing to based on the 5 (lower lows/highs). Then it started dropping. I tried to short later, but again , this was against the general market sentiment.

FFIV

This seems to happen a lot, breakouts failing on the first try.

ISLN

Marked the trade, but didn't enter. Flat as it gets.

PBR

VMW

This is a definite study. I was late on the short and the stop was wide. It dropped a good point and came all the way back for the stop. I re-entered because it looked like the thing to do.

WLT