some days are like that ,i was up $230,but didn't take it, ended up only $160. i was greedy, was waiting too long for more profit.
Summery:+160
Friday, February 15, 2008
Thursday, February 14, 2008
Why small spread is important in day trading?
Spread is the difference between bids and ask price. Day traders always want the spread to be as small as possible, so what does the small and large spread indicate?
Large spread indicates that the individual stock or the market is not trading actively, less active means less volume. Larger spread could also mean indecisions of direction what day trader wants to avoid.
For example, the spread of XYZ stock is 10 ticks, so if I wanna buy 1000 share of XYZ & sell it 1 second later I will lose 100 $, just to break even I need to gain 10 ticks. The larger the spread the dipper the pain.
Market order will get filled at acceptable price if the stock have small spread, so day trader feel comfortable placing market order which is quicker & more effective then limit order in day trading.
Large spread indicates that the individual stock or the market is not trading actively, less active means less volume. Larger spread could also mean indecisions of direction what day trader wants to avoid.
For example, the spread of XYZ stock is 10 ticks, so if I wanna buy 1000 share of XYZ & sell it 1 second later I will lose 100 $, just to break even I need to gain 10 ticks. The larger the spread the dipper the pain.
Market order will get filled at acceptable price if the stock have small spread, so day trader feel comfortable placing market order which is quicker & more effective then limit order in day trading.
Couldn't trade today
My broker’s chart server crashed at around 10 am, so I will not be able to trade today. In the mean time I am doing some paper trade .
Wednesday, February 13, 2008
Tuesday, February 12, 2008
Short PNM
I didn't have any reason to get out of the trade,after a dollar gain where it didn't show any sign of slow down ,i need to improve on my exit.
Summery +333
Monday, February 11, 2008
Sunday, February 10, 2008
Saturday, February 9, 2008
Mistakes i made in the beginning
I. I didn't know what to look for or was looking for too many patterns that caused serious problem in my trading performance in the beginning.
2. Too much mental pressure to make money too fast caused lack of concentration.
3. After an initial loss tried to make it quickly, which made me totally over look the trading plan?
4.Trading too big size caused negative effect in my trading performance.
5. I wasn’t following stop loss that contribute to loose big amount of money in the beginning which was the biggest mistake so far.
6. I didn’t analyze my mistake every day, that’s why I made same mistake next day.
7. I was trading a shorter time frame which was giving me fast and many false signals.
8. I ignored my physical tiredness which I believe distracted my concentration.
After 5 days i traded from cyber cafe
My internet is still down, i went to a cyber cafe yesterday to check out how the market was doing,but ended up trading ,i wasn't comfortable at all in the cyber cafe,was noise.
summery +146
Sunday, February 3, 2008
Reviewing my trading system
1. I will trade only high volume stock with the price range is $10-$150.
2. Daily volume at 10 am is 300k-600k.
3. 10 minutes chart but also check 30 minutes charts too.
4. Avoid extremely wide opening ranges(including wide body & the shadow)
5. Choppy price action( means when I will see more long shadow in the charts)
6. Not get into any position before 10.am (because this time when all the order from the previous evening get filled & market makers, institution traders are most active.)
7. Narrow range bar is the best candle to enter for obvious reason
8. 5 EMA need to be close to the candle.
9. Enter stop loss as soon as get into a position.
10. Before entering a position I must know the stop loss and possible exit, I will exit half of my position at next round number or at a dollar gain or support or resistance & rest of them when strong reversal candle will appear or when a opposite type candle overlap the intended trade candle(green, or red).
11. Position size will determine by dividing the fixed amount by opposite candle size.
12. Patterns that I trade or like
· Pull back then resume with full swing.(VVI)
· Pause in the trend(VVI)
· Opening breakout
· Flag
· Base form & breakout
· Wedge
· Triangle
13. I will never let my loss become bigger then my predetermined stop loss amount.
14. Before entering a trade I must know previous days high & low, support & resistance, most of the stock get stuck in previous days support or resistance.
15. I will never turn a gainer to a looser, if I am in profit & I want to give stock a playing space, but it doesn’t mean I will make a loss to give a stock a playing ground.
16. I will not decide the market direction, market will tell me the way it’s going, and I will not force the direction.
17. What I thing about the movement of the stock does not mean anything but what I see is the main thing.
18. Loss is the part of the trading, but it is the most important in my trading to keep it under control.
19.I will follow my plan what ever happens.
2. Daily volume at 10 am is 300k-600k.
3. 10 minutes chart but also check 30 minutes charts too.
4. Avoid extremely wide opening ranges(including wide body & the shadow)
5. Choppy price action( means when I will see more long shadow in the charts)
6. Not get into any position before 10.am (because this time when all the order from the previous evening get filled & market makers, institution traders are most active.)
7. Narrow range bar is the best candle to enter for obvious reason
8. 5 EMA need to be close to the candle.
9. Enter stop loss as soon as get into a position.
10. Before entering a position I must know the stop loss and possible exit, I will exit half of my position at next round number or at a dollar gain or support or resistance & rest of them when strong reversal candle will appear or when a opposite type candle overlap the intended trade candle(green, or red).
11. Position size will determine by dividing the fixed amount by opposite candle size.
12. Patterns that I trade or like
· Pull back then resume with full swing.(VVI)
· Pause in the trend(VVI)
· Opening breakout
· Flag
· Base form & breakout
· Wedge
· Triangle
13. I will never let my loss become bigger then my predetermined stop loss amount.
14. Before entering a trade I must know previous days high & low, support & resistance, most of the stock get stuck in previous days support or resistance.
15. I will never turn a gainer to a looser, if I am in profit & I want to give stock a playing space, but it doesn’t mean I will make a loss to give a stock a playing ground.
16. I will not decide the market direction, market will tell me the way it’s going, and I will not force the direction.
17. What I thing about the movement of the stock does not mean anything but what I see is the main thing.
18. Loss is the part of the trading, but it is the most important in my trading to keep it under control.
19.I will follow my plan what ever happens.
Saturday, February 2, 2008
Internet down
last two days i did not have any internet,today i traded from hotel chopenhagen but took a loss
Summery -312
Summery -312
Wednesday, January 30, 2008
Tuesday, January 29, 2008
What is level 1 & level 2
Level 1 means where a trader can see the bid & ask price & the size. A trader can also see the last price & last size.
Level 2 is more detail ,a trader can see the highest bid & size, lowest ask & size.
Level 2 is more detail ,a trader can see the highest bid & size, lowest ask & size.
On the left we can see open buy limit orders which is called bid, starting with the highest price. On the right we can see the ask prices, which are open sell limit order arranged starting with the lowest.Next to the bid & ask price we can see the size .
Order Types traders use:
- Market Order - an order to buy or sell a stock at the best bid or asks price. A market order will get filled for you fast, but you might not like the price! By then you have no choice but to take the price and hope your day trade is heading in the right direction. If the market is moving fast and you simply have to get in, sometimes a market order is the only way.
Limit Order - an order to buy or sell a stock at a specified price or better. This is the day trading order of choice for day traders and indeed traders of other types..
Stop Order - an order that becomes a market order when a specified price is reached. This order mostly use to protect a day trading position from incurring larger than acceptable losses . A "buy stop" order is placed above the current price and a "sell stop" order is placed below the current price.
Subscribe to:
Posts (Atom)