Thursday, June 21, 2007

I Hate Toddlers... Not Really

I'm just in a bad mood from my crappy trading today and would rather vent right now then be peed upon by some potty-training, whining kid. I love kids though. Really.

Anyway, here's what happened today. I simply didn't know what to do!

The whole thing is that I was to trade with more patience. So when I was largely short at 10:00am, and in the money in most of my positions, (MOS, AGU, DE, MLM, GWW, LNN) I was ambivalent about covering and taking the gains. I wanted to take the money, but at the same time, I didn't want to take the money and then see them break to new lows thereby proving that I was trading impulsively, without thought and without a "plan".

So, I held and I lost money.

Not a lot at that point. I lost about $70 in AGU, $70 in MLM, $80 in DE and $200 in GWW. Not a good start, but not a disaster either. I had 100 shares overnight of LNN still and that was up a couple of points to offset some of those losses.

However, because I knew I had losses in my shorts, I made a related mistake and quickly covered my gain in LNN to "lock in" at least those gains... I sold my LNN around 41. It closed at 44.50 off the highs at 46.50, so I left a lot of easy money on the table there.

So now I'm down on the day a little and watching the market spike up. After the sell-off into the close yesterday and then the weak opening I was bearish. I was not aware of this bias however but it is clear now looking back on my trades from the day that this bias messed with my head.

I kept getting short during each pullback and kept buying my shares back at higher prices...

My big ugly loser of the day was in.... TNH! My old buddy, what happened?

Well, take a look at that chart. How could you lose money in TNH today? You could be short. I was short and that, in a word, was STUPID.

No trading system can save you from yourself.

I lost $828 in TNH so it made up the lion's share of my losses today. Not going to over-analyze it. It's obvious the mistake I made... I was shorting a stock that closed up over 10 points on the day!

Anyway, I'm going to keep my chin up. I made some mistakes today trading with my new style. I also learned that if the market isn't trending cleanly that it is much more difficult to hold stocks.

Actually, I also made some churny trades... I will continue to work on my discipline to stop making those trades...

Looking forward to the Russell Rebalancing tomorrow. Should be interesting at least. That's all you can ask for on the first official Friday of the summer!

Here's the stats:

Best, VNO, $394
Worst, TNH, -$828

shares traded, 28,800
stocks traded, 11, 3 positive, 8 negative
total trades, 130 (way too many)

1 comment:

MIsstrade said...

TNH never gave up the 10 ema on the 5 minute chart all afternoon so there was no reason to short it for a scalp. Long sure many times you could have bought it, but unless it breaks taht short term trend line I was willing to stay away all day on the short, now why wasn't I long? That I will have to work on.