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Tuesday, March 14, 2006

Time to go back to school ...

Clearly all is not well with my trading. My mindset is clearly not right as I took another 2 1R losses today. Clearly I am doing something wrong, and until I can figure it out and get it out of my system, I am simply throwing money away.

So, time to get away from trading for a bit, pick up some books and just reset the mind. I am not sure how long this is going to take, but I am not going to trade again until I have a lot more confidence in my ability to trade well.

There are also some other things that are distracting me at this point, and have been for a while now, so I will get them resolved to ensure I have nothing troubling me in the back of my mind.

So, good luck to all. I will start posting again when I am ready.

"I'll be back."

Monday, March 13, 2006

Trading Summary : 03/13/2006

I am not superstitious, but it was the 13th today …

Took two trades this morning, both longs and both were full 1R losses. Once more I had a choice between a really good setup (KMX) and a slightly suspect one (OPSW) and naturally I went with the more suspect one. With OPSW all I succeeded in doing was getting in near the top and exiting near the bottom. I entered off the 9:45am up bar and ignored the small wick.

In the meantime, KMX eventually went onwards and upwards to achieve its target of 35.08 (I would have brought that in to 35 and a 2R gain).

My second trade was KKD. I entered above the 10:15am hammer but was stopped out in the vicious chop that occurred at 10:45am. I had set a price target of 8.74 (2R gain) which was hit at 11:45am. So, I do not consider this one a bad trade, just unlucky given the degree of chop that took me out.

There were some nice short setups earlier, such as LEA. If an entry had been taken below the 9:45am bar, this would have netted a near 8R gain.

Perhaps I need to consider the type of setup I use depending on the overall market action early on. I am going to see if there is some correlation between the successful setups and the early morning market action so its back to the past trade analysis.

Friday, March 10, 2006

Trading Summary : 03/10/2006

Just like yesterday, I took one dumb trade (ZQK short) and one good trade (SGMS long). However, the overall result was a wash as I only got a partial fill on SGMS, and I took a partial loss on ZQK. But at least I did not suffer an overall loss today.

ZQK was a stupid trade purely because the first bar had a long tail, but more importantly, the second bar (which I entered off) was a spinning top showing indecision. I should have waited on the next bar, which was a hammer, and that would have kept me out of the trade. In fact, the 10:00am hammer and the 10:15am up bar lifting off the OR low showed strength, meaning I could have gone long with a target of the fib retracement zone which it just hit two bars later.

SGMS was a slightly risky trade too given the 9:45am and 10:00am spinning tops. However, since they were narrow in range and just below the OR high, I took an entry above the 10:15am spinning top. The target was 33.20 and that was just touched at 12:45pm, but I had already bailed earlier below the 11:45am down bar.

So, overall I was disappointed with my trade management, once again. I should have held SGMS to its profit target, at least realizing a small overall profit, and I should have passed on ZQK.

Overall, I did not see any really decent setups. Volume seemed low, with the market trending up across the board, with nothing decent standing out. No paper trades today.

I have taken the spare time today to refine my scans once more. I currently have two scans running every 5 minutes, one for longs, one for shorts. They are based off the “Change from Close (%)” primary filter in CyberQuant. I have now dialed down the “Volume Over Yesterdays (%)” and “Volume Over 20 Avg Vol (%)” down to zero, but I have left them in place so I can easily bump them up if I want to. I have replaced my “Current Price” greater than / less than “Prior Days High/Low”, with the current day’s high/low. This should show me all stocks that are beyond the prior day’s trading range.

If any other CyberTraders want to take a look at my scans, I will be more than happy to pass them on. You certainly could do no worse than me with them !