April 8th

This was a more comfortable day in front of the markets for me. Although I started off on the wrong foot with two losses on one cumulative position, I was pleased that I recognized it as a loser and bailed instead of riding it down as has often been the case for me. I then promptly reversed my direction and went short into the trend and made most of the loss back right away. Because I am paper-trading, the dollar amounts are moot. What is important is the training... and this trade was good training in what to do when the trade goes against you. The whole point is to keep yourself in the game; which requires protecting your principle. The rest of the day went quite well with just one other loss. With regard to winners, it was another day with escaping too soon after good entries at the head of nice moves. Notably, the final trade of the day where I took only 6.5 cents out of a 56 cent reversal in SKF at 2:12 pm; a mere 12% available to me! But, the fact is that I took a profit on the trade and I will not complain too loudly, lest I anger the market gods and be rewarded a massive loss the next time out for my insolence.
Two other bright spots in the day:
1. My conversation with Yngvai of http://welcometothegutter.blogspot.com/ regarding all things stocks. Thanks, James, for a great back and forth about this little world we choose to play in! It was a pleasure to talk shop with an afficianado.
2. Scott Farnham, the human trading machine, has opened up his blog Fear & Greed Day Trader to the public again, after a two-month hiatus. Copy everything you can as Scott's comment indicated that it may be available only temporarily. Hopefully he will keep it out there for us for a long time! Thanks Scott.

10 for 13 winners, a 77% win rate. 83 cents per-share gain.

Trader tax issues

As mentioned in an earlier post, above is Page 72 from IRS Publication 550. Here is the link to see the whole publication.

http://www.irs.gov/pub/irs-pdf/p550.pdf

btw, that's a picture of our 14 year old Lab Retriever, Elsie.