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
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.
Sunday, February 17, 2008
Saturday, February 16, 2008
Not a bad day
Not a bad day but could have been better, I have to work on that. I was in the right stock but didn’t do the right thing, as usual my exit was poor. My next assignment is how to improve my exits.
Summery +478
Summery +478
Friday, February 15, 2008
Technical analysis & day trading
Technical analysis is a study of price & volume action of stocks or markets, by using different kinds of analytical tools (indicators) or simply drawing a trend line or support and resistance level. Trader use charts as a basic element to analyze securities. Day traders rely on technical analysis rather then fundamental analysis. As I became more interested in day trading, I found out that it was fascinating to predict the next move of a stock .The only way to predict the future move is to analyze their past move.
Most popular technical indicators:
1. Moving average (MA)
2. Moving average convergence divergence ( MACD)
3. Relitive strength index (RSI)
4. Stochastics
5. Bollinger bands
6. Commodity channel index (CCI)
7. Money flow
8. Parabolic SAR
9. Price Oscillator
10. Momentum
11. Directional movement index (DMI)
12. Price oscillator
13. Average true range
14. Donchian channel
15. Accumulation/distribution
Most popular technical indicators:
1. Moving average (MA)
2. Moving average convergence divergence ( MACD)
3. Relitive strength index (RSI)
4. Stochastics
5. Bollinger bands
6. Commodity channel index (CCI)
7. Money flow
8. Parabolic SAR
9. Price Oscillator
10. Momentum
11. Directional movement index (DMI)
12. Price oscillator
13. Average true range
14. Donchian channel
15. Accumulation/distribution
Small gain but i am happly with it.
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
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.
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