Saturday, February 23, 2008
Friday, February 22, 2008
Choppy market chopped me
Probably I lost my confidence, like yesterday my stock management was very poor, I ignored my rules, as the market was choppy, and it made even worse impact on my trading.
Mistakes I made today:
1. I ignored my stop loss, got out with loss for no reason, where the stop loss was never touched.
2. In other trade I forgot to put stop loss, instead of losing .12c (which I was willing to lose) I lost .26c.
3. I over traded.
4. My exits were really bad (left $2.50 on the table )
Summery -220
Thursday, February 21, 2008
Wednesday, February 20, 2008
Another ordinary day
I don’t know for some reason ONXX wasn’t in my usual watch list & my second screener didn’t work today, otherwise my P&L would be different. I am not proud of my trade that I did today, wasn’t really good setup .
Summery +173
Tuesday, February 19, 2008
Most of the unsuccessful traders make the same Common mistakes
I was reading some of the horrible stories of day traders how they lost every thing in the market; some of the stories are really painful to read. As I was reading their disasters, i wrote down some of the mistakes they made.
Most of the unsuccessful traders make the same Common mistakes:
1 .They like to use complex system, lots of indicators, where they are telling the same old story (price & volume). As I learned so far simple system is the best.
2. They spend more time in trading, then learning, we already know successful traders spend more time improving themselves & their systems then trading, they are very selective.
3. They lost their capital, before the learning process. To become an expert it takes years of right experience.
4. They think but they don’t see, they think market will go up or down so they buy or sell, but they don’t see what the chart is trying to show them.
5. They want to control the market, which is impossible.
6.The have gambling problem.
7. They don’t know when to stop.
8. They think they know every thing, they don’t take advice.
9. When they go through bad time, they change their system, time frame & market.
10.They try to get rich over night.
11. They are very risk adverse people, so when they lose, they can’t tolerate it, they start impulse trading & end up losing more.
12. They never learn their lesson.
Monday, February 18, 2008
How day traders can use support & resistance in day trading?
Support & resistance are very important tools for the day traders. I discovered as a day trader supply and demand are key causes of markets movement. When there is a huge demand for a stock, the stock will rally and if a significant number of share holders want to sell a particular stock, there will be sharp fall. But when the price has really difficult time to move upwards or downwards, we called it support or resistance. In support & resistance level supply & demand are almost equal.
How day traders can use support & resistance in day trading?
1.In an uptrend, trader should buy at or above support level, never below support.
2.In a down trend, trader should sell at or below resistance level, never above resistance.
3.If traders already in an up trend should be prepared to sell at resistance, price can fall sharply at resistance.
4 .If traders already in short position should be ready to take profit when price approach support level.
