Plan has changed, I find it very hard to sit and do nothing and some trades are impulsive and this needs to change. I am also seeing what I want to see in stocks and trying to trade on this false view rather that trade the action at the time.
What is working,
Stops
Limits at key levels for entry
Scaling out
Holding longer
Stock selection
After watching Bruce Bower and his presentation for SMB I need to create a checklist of key actions to take leading into a trade. This has to be simple and able to be followed so I am consistent and manage trades the same way each time.
I will buy his book when it comes out and hope this gives some guidelines on what is essential and work from there.
I am also going to copy Steve Spencer trades on SMB realtime as best I can, this will be with small size of 10 - 20 shares and for the purpose of learning and then making those setups mine. His trading is very good and his picks are entered by clear well defined levels.
There are a lot of trades that I would not make that he enters and this just tells me I need to change how I see the action so away we go.
at 10 shares a trade fees will make it hard to get profitable but this is accepted at the price of learning as the flip side of this is that it will also make for very small losses if that it the case and on a weekly basis if it was more winners that losers then the following week will see a small increase in size.
Trades that I feel I understand and are ones I would take I will trade with normal size
I started today..
PL 3 of 4 positive trades and a little down due to fees. A good start and happy with this
I am holding 2 open positions overnight.
CXO
entered long on stalling around the 121.80 level. It seemed to be holding so in a limit at the bottom to capture the extra few cents. I got out of this trade when it stalled after a couple of attempts at a new high.
UNH
Went short under VWAP and stock worked its way up so stopped out
I was short this one and closed out when It looked as if it was holding. It was a good trade with a small profit and a break even
FAST
Momentum play on the open thanks to Steve. Entered with a wide stop and no stress due to a 10 share lot. A great lesson and easy to pay attention with a small stake in the play
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