Sam's Day Trading Log (With Charts)

[Sam.Morgan]

I have been paper day trading stocks for the last 6 months with mixed results. However, the mixed results have been improving and I feel that I am a better trader than when I first started.

Starting 1/1/11, I would actually like to trade with real money, so I thought it may be a good idea to post my trades here. I know there are a whole load of seasoned/successful traders here, so feel free to let me now where I'm going wrong (occasional complements are accepted too :clap

At present, I have a job, which give me the opportunity to trade full day sessions and morning sessions on alternate weeks. Hence, my full day sessions may have more trades.

Pls, try and keep the criticism constructive, as I am hoping this will be a successful journal which will prove to be helpful for all.

Thanks in advance,

SM

 

[Sam.Morgan]

Trade 1: SLV SHORT:

The first trade was taken when the trend reversed and failed to break past the days open. I took this as weakness at the open and was taken out within the next 1-2 minutes.

Trade 2: SLV LONG:

This was a trade that I was not happy with as I had initially wanted to get in at the bounce of the 20MA @ $28.68 (just before 10am). I was trying to analyze my previous trade, and so missed the entry. With the stock forming a nice little uptrend, I decided to get in at $28.87. I didn't like my entry as I felt I had chased this stock and bought it at the top. However, I felt comfortable, in that at worst, I would be out at B/E. It took a nice pop ($28.90-28.98) with huge volume a couple of minutes later which I thought would cause an increase in demand moving the price a little higher. I had re-adjusted my stop to $28.89 (with a $0.02 profit ). I feel the when the candlestick failed after the pop, I should have tightened my stops and come out with a $0.07-8 profit)

 

[Sam.Morgan]

Pic. 1:

Trade 1:
LONG:
Entry: $26.06
Exit:$25.98
$-0.08

Trade 2:
LONG:
Entry:$26.26
Exit:$26.26
$0.00

Trade 3:
SHORT:
Entry: $26.36
Exit: $26.35
$0.01

Pic. 2:

Trade 4:
LONG:
Entry: $28.55
Exit: $28.55
$0.00

Pic. 3

Trade 5:
LONG:
Entry: $12.49
Exit: $12.49
$0.00

Total (+/-): $-149.90
All Time (+/-): $-149.90

Loss: $70.00; Commissions: $79.90!!!

Most of the trades today were badly taken, despite some sort of logic to it. Trade 5 was pure, plain BAD, with 0 logic!!!. Bring out your whips!!!.
Lessons learned.

 

[tomorton]

Keep at it Sam. Not wishing to pour water on your enthusiasm, I'm sure at this stage of your game, your objective should be to not lose money, not to make money. Later, the game changes.

What about your targets though? If you're quickly and repeatedly being stopped out at b/e, are you not trading noise rather than the big moves? It would be good to see your log show a plan per trade - even if just the signal that gets you in, the stop-loss, and the profit target: if you can't see both exits, it may not be a great idea to go in.

 

[Sam.Morgan]

Excuse the absence of charts for the last 2 days. I was hit with the flu and am recovering.

I could also kick myself in the process as I could've gotten the flu shot for FREE at Walgreens, but declined, as I didn't have "faith" in those shots. Maybe next flu season, i'll get one and pay for it!

 

[Sam.Morgan]

Keep at it Sam. Not wishing to pour water on your enthusiasm, I'm sure at this stage of your game, your objective should be to not lose money, not to make money. Later, the game changes.

What about your targets though? If you're quickly and repeatedly being stopped out at b/e, are you not trading noise rather than the big moves? It would be good to see your log show a plan per trade - even if just the signal that gets you in, the stop-loss, and the profit target: if you can't see both exits, it may not be a great idea to go in.

Hello Legend, it's interesting you mention it. I was reading another journal and some guy bit off the journal owners backside for not having a trading plan written. I have a trading plan mentally, but I agree with the furious bull dog and so will try and have a written trading plan by the end of the week (before my ass is gone!!! )

My entries are pretty much consistent in that I use the 8MA & 20MA, 1 & 5 min. charts, previous resistance, vol., MACD and RSI. Occasionally, this may vary. On entry, I will have a 1% stop loss and try and bring it up to B/E asap, which I think may be getting me stopped out a lot at B/E. If you have noticed, I tend to get stopped out by a penny or two and then it takes of again as if the target had my name on it .

My exists are based predominantly on the MA's and support/trend lines (and not a target in terms of a number). I have put my explanations on the charts. Is there anything you are seeing that I should be avoiding?

Thanks for your input,

SM

 

[wackypete2]

I have a trading plan mentally, but I agree with the furious bull dog and so will try and have a written trading plan by the end of the week (before my ass is gone!!! )

Good man. It really make a difference to see your plan written out. It will cause to to think about how well you are following it or to see potential weak links in it.

By the way, this time of year is not the best for trading. Lot of choppy markets until after the holidays so don't get too discouraged if your trading isn't up to par for the rest of this year.

Just a suggestion since you will get lots of good pros and cons on this, but try exiting 1/2 of your position before moving your stop to break even.

Finally, limit your subset of stocks to 12-15 at first and learn them like the back of your hand. You will begin to notice that they don't all react the same at the same price levels or to the same chart patterns or whatever you use. Over time you will be able to identify which ones offer better opportunities at your entry criteria.

Peter

 

[Sam.Morgan]

Just a suggestion since you will get lots of good pros and cons on this, but try exiting 1/2 of your position before moving your stop to break even.

Better some than non . I like this idea and will give it a shot.

Finally, limit your subset of stocks to 12-15 at first and learn them like the back of your hand. You will begin to notice that they don't all react the same at the same price levels or to the same chart patterns or whatever you use. Over time you will be able to identify which ones offer better opportunities at your entry criteria.

Sir WackyPete, would you have any examples as to what I should be looking at (in learning their characteristics).

Thanks again,

Sam

 

[Sam.Morgan]

Two nice and easy positive trades for the morning. I was catching up on reading so only decided to trade till 11am. A longer day may have brought some excitement with FAS, as it trod happily towards $27.03.

 

[Sam.Morgan]

Pic. 1:

Trade 1:
LONG:
Entry: $26.33
Exit $26.46
$0.13

Pic. 2:

Trade 2:
LONG:
Entry: $28.44
Exit: $28.54
$0.10

Total (+/-): $198.04; [$230-$31.96(commission)]
All Time (+/-): $48.14

 

[Sam.Morgan]

Pic. 1:

Trade 1:
LONG:
Entry: $27.29
Exit: $27.30
$0.01

Trade 2:
LONG:
Entry: $27.37
Exit: $27.58
$0.21

Trade 3:
LONG:
Entry: $27.66
Exit: $27.60
-$0.06

Trade 4:
LONG:
Entry: $27.73
Exit: $27.63
-$0.10

Trade 5:
LONG:
Entry: $27.73
Exit: $27.79
$0.06


Pic. 2

Trade 6:
LONG:
Entry: $28.61
Exit: $27.61
$0.00


Total (+/-): $344.12; [$440-$95.88(commission)]
All Time (+/-): $392.26

 

[wackypete2]

Looking good so far.

Peter

 

[Sam.Morgan]

Hello all. I am no longer be posting in this journal as the response rate is low. I was running a 2 journals (duplicates) and have opted to continue at Elite Trader as I am getting more responses. Please feel free to follow me there as I do value your input.

This, by no means, has a bearing on this forum. I think the ppl posting, the journal and the site as a whole is excellent and I will still be a frequent contributor here.

Thanks again,

SM