Thursday, October 14, 2010

New rule

Have a new rule - if Stewie sells his stock due to profit and I want to hold, I need to move my stop up to break-even (without comissions) at the very least. 

Wednesday, October 13, 2010

On about Day 120 of not overtrading

Wow. Haven't updated in a while and I made it through 90 days of not overtrading! Geez I actually only traded a bit here and there - but now talking small losses (or gains) feels normal. For now. Got a little excited yesterday and had a minor issue which my uebersponsor will treat as an error. But it makes me realize just how easy it is to slip up. Gotta stick to my rules or modify them formally. Have I made any money? Not really- have some gains, some losses. But that's not the point. I now know I can stick to a system. Onwards.

Monday, July 12, 2010

On Day 40 of not overtrading

Ok well I haven't updated this blog in a while. I determined to never again trade emotionally, and try to get to 90 days of NOT overtrading, similar to my Overeaters Anonymous program, in which we must be abstinent from overeating for 90 days. I started on May 23, and I am only counting days that the market is open. On every day that I don't overtrade, I am considered "abstinent" or within the rules. This can include NOT trading at all, which is an active decision to stay on the sidelines. In fact currently I am on day 40 and I have made only 2 trades, both within my rules.

Here are there rules for me:

-     Only trade Stewie alerts during this period.
-          ping Stewie on email or chat for the grade on any alert
-          If it is GRADE A (includes plus or minus), and market conditions seem favorable, I will take it.
-          If thinks are rocky/violent/choppy/turbulent  I’d rather not take it.  
-          I will put stops in as suggested by Stewie ( not  the % loss thing).
-     I will use just <= 3k of capital (my emotion threshold)
-          I will sell when Stewie sells. If away from computer, must be within 5-10 minutes and max 10 minutes (use iPhone to trade ThinkOrSwim if on the road).

- Today was tough - I had to talk a very small $24 loss and I was fooling around with limit orders, then had to ping Stewie if really should sell as I had missed the alert, he said yes, and I did it will on the chat. The total time was within the 15 minutes. In the past, not selling very small losers has been by nemesis, as they always get worse. So I need to really watch this. I need to graciously and willingly accept small losses, ALWAYS. Winners will come if i trade by the rules.

Wednesday, June 2, 2010

Sell in May sure was true

Well I hate to state the obvious but "Sell in May" sure was true.. the flash crash and the week after caused me to do emotional trading and need to reset my days again to zero. I am now on Day 6 of NOT OVERTRADING. I've managed to do it by actually not even making ANY trades for the last 6 days. Hey if that works.. As an outsider, it sure looks very choppy and basically untradeable. Will sit out the rest of the week. Momo.

Monday, May 17, 2010

Takin it easy

I've got a lot going on at work and I realized that it is hard to play in the current environment without trigger fingers, so I am trying to take it easy and just not touch my accounts too much. I got stuck in one long position that I am waiting to get out of when we get a short-covering rally sometime this OPEX week, and then I've kept my now nearly useless LVS puts just in case we have another black swan event before Friday. You never know what can happen - we could be shooting up or down ...

Wednesday, May 12, 2010

Rules & Suggestions Updated Again

OK communicated with  Stewie and I've updated my rules again:

1. no more than 2% risk per trade.
2 if using options must have 300 or more volume.

1. try to move stop up as soon as break even.

The problem with moving up your stop to break even as soon as possible is that it may cause you to stop out especially if the stop is at an unnatural point. As long as you are comfortable with your per trade risk and your stop is in, you should let the trade work. It is still nice in concept to move your stop to break even, but it may reduce the effectiveness of the trade. Therefore making this a suggestion, not a rule.

2. - is a rule because I am still tired of dealing with market makers that want to screw with you when you try to exit out of an option - lowering their bid when you lower your ask etc - as happened to me yesterday in HOG. In fact after talking to Stewie I am going to use options for now because I am trying to get back to basics here, and there are all these other factors with options: expiration, time premium, delta etc. are a lot to handle in a market that has so much volatility anyway.

Ok doing well, passed Day 4 of not overtrading. This was hard as both NETL and LULU and others such as NFLX ran up and were tempting to chase. Even the SY buyout rumors were hard not to chase. But there will always be opportunities.

Tuesday, May 11, 2010

Updated Rules

1. risk no more than 2% of the account size on the trade
2. if using options can't buy any with less than 300 volume on that strike and that day.
3. only stewie alerts for 87 more days (completed day 3).
4. move up stop to break-even as soon as you can.