Stocks
Trades: 28
Shares: 4,700
P/L: +62.87

YM
Trades: 25
Contracts: 36
P/L: -832.06

Stocks
Trades: 3
Shares: 400
P/L: +293.00

YM
Trades: 3
Contracts: 5
P/L: -15.00

The first trade today was right after 9:00 when I got short the market just before another 40 point break down. We broke down hard to a previous low at 13444 and traded sideways. I had missed an opportunity earlier in the week to add to a winning trade and wanted to be sure I did not make the same mistake again. I did add but just got in a little to early. I was more concerned about missing a big breakdown than with getting the perfect price. Since my original entry was so good my second did not matter as much and I set my mental stop over 13480. The problem came when I added another contract to the position. After getting filled on the third contract I started looking at how much I would lose if I got stopped out over 13480 and decided that if the market did not break down here I would need stops in place. I placed my stops under 13480, contrary to the original plan, and got hit about two minutes later. The market then traded up to just under my original stop level and over the next 30min the breakdown I was looking for came through. As the we kept going lower I put on my second trade which was just a scalp to try and get back some of my losses from the previous trade. The last trade was to get short again looking for the second leg down in the market. I got short at a good time and was up about $150 on the trade but did not exit looking for a larger move down and was S.O. for a small gain. The hardest part of today was the fact that I was up over $250 at a point on my first trade and $150 on my third and made about $50 on my second. It could have been a $450 dollar winning day instead of a loser.

The thing I am finding the hardest right now is sticking with my trades over the longer time frame. I have the patience for the longer time frame and ability to find good entry’s which is key to make this style of trading work. I think the main problem is that I did not realize I would potentially have to hold for up to two hours to get the moves that I want. Its hard to keep my eye on the prize when, in cases like my first trade I make 40 points so quickly, and don’t exit only to see my gains evaporate over the next 45 minutes while waiting for the bigger move to come. I start to second guess myself and end up changing the original plan which causes me to lose on trades that would be winners.

I have considered putting on two contracts on my original entry and exit half on any large move my way to book some profits in the case that the longer time frame trade does not work out. The only problem is the extra volatility in the market is forcing me to keep my stops wider which could really hurt me with an extra contract. I’m not sure what the answer is but I my test the idea in the coming weeks.

I had an appointment with the dentist this morning at 9:00, so I didn’t even to get to see the open. I got back at about 10:45 still a little drugged up from the gas. I watched the market for about an hour just looking over my charts for possible trades. I took a trade on MA with a close stop that was hit and one on DE with the same result.

After yesterday’s abysmal trading I was determined that I was going to work on using a trailing stop if I took a trade in a MoMo. Around 11:30, I noticed that some of the solars were setting up a wedge pattern that I like to trade. I mostly watch FSLR, SPWR and JASO in the solar space. FSLR started acting a little crazy and JASO wasn’t doing much so I took a trade in SPWR.

I started out with 100 shares as SPWR tried to break up. This move failed and a nice consistent bottom began to form. I added another 100 shares on the sideways consolidation and put in my stop just below the bottom of the wedge (lower red line). After adding to the trade the move started to show some life. I waited for a break up to $125 and then moved my stop up to $124, just above my initial entry. We had a small consolidation at $125 and then a move to $126. When we failed to trade above $126, I moved my stop up once again to $125 where I missed getting stopped out by 4 cents. Again we failed to break up and I moved my stop a final time. I was hit at $125.30 with a profit of $387.

At the highs, this trade would have netted me just over $500 yet I took away less than $400, and this doesn’t bother me. I had a game plan, and I stuck with it. I could have easily rang the cash register anywhere on the way up, but I moved my stops and remained calm and patient. This is a big win for me, not because of the money, but because I have made some real progress on improving my trading mechanics. Hopefully more advances will come next week.

Stocks
Trades: 9
Shares: 1400
P/L: +250.37

YM
Trades: 5
Contracts: 5
P/L: -86.30