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Not A Fruitful Day

Posted by Satuki On May - 27 - 2009

I woke up this morning and looked at a few stocks I selected last night.   The only stock I liked was MOS.  It went up a lot in the past few days, which means it is ripe for a good intra-day short.   I like to short into stocks like that.   It looks like dangerous since most people think it is trading against the trend.   They are right if it is swing trading.  But It should not matter for day trading since all stocks pull back at a certain point.  Key is timing.   Some people do not believe in timing. But I do.

 

I could have made decent money today.  I shorted into MOS twice today.  One trade was botched up since the entry was not good and it was stopped out.  In fact these 2 short positions were very close in terms of their entries, one being 56.30, the other 56.47.  But due to the increase of the overvall position size, I had to use a narrower stop for the second one.  If I had held onto the second short position a bit long, I would have made a total of 600 along with the other short position.   Then I would have stopped trading for the day.

 

The CNX trade was a rotten trade.  I took it because I wanted to see if I could make money going long on something.  That thought occurred to me because I short stocks way too often.  It is not well balanced. That is still not a good excuse though.  We take a trade based on signals instead of trying to prove something.

 

A lot of traders can make a few thousands this week and then lose half of it next week. It is actually a common and tough problem. I have been trying very hard to keep my gains, which certainly takes a toll on my performance.


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  • J
    It does not matter if you short more often than going long as long as you are making dough. I saw your YGE alert on time but TS did not shares to short it. Very good call.
  • That is why I have TradeStation, ThinkorSwim and Interactive brokers
  • Bill
    I really appreciate your comments and openness. It is refreshing.
    I day trade stocks between $1-4. Am comfortable with it but ran into a stock in my research that may interest you. Take a peek at LCC. I bot 5400 shares at $2.71, expecting to sell it at $2.77. Typical trade for me. But then I looked at a little longer time frame. See if you see what I see in a 3 month time frame. I changed my limit sell to $4.50.

    Bill
  • I am not really good at trading low priced stocks. But I will give a try. I guess the recent sliding of LCC is perhaps caused by the crude which went up quite a bit. If Oil is due for a correction, then it might have a chance to move up somewhat. That is FA

    From TA, I perhaps would wait a bit more to open a position since it does not seem to be constructing a bottom here. It might attempt to make a bottom if crude cooperates in the next few days. Of cousre, if LCC cracks the last strong support around 2, I would get out.

    If it makes a good solid bottom around 2.5, then it might try to touch 4.5.

    Just my 3 cents.
  • camtrader
    I must say I do learn a lot from your posts and have been cutting my losses short faster. Instead of moving my "mental stop" and hoping, wishing, and waiting.

    Today I only took one trade with a RIMM short when it bounced against it's highs a couple of times, but didn't short/exit at the right time. But I'm happy with myself as I could've lost more if it did move higher.
  • Yeah, losers must be dealt with swiftly and mercilessly. They are tumors.
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