Weekly Stats - July 13 to 17th

I worked in some trading when I could this week, faced with the passing of our dog and increased day-job activity. I was able to get into the market for 11.25 hours of the 32.50 available; about 35%. I reduced my position size from 300 shares to 200 shares, initially because I was trading Potash, a relatively expensive stock for me, but decided I liked the smaller position size so I'll stick with it for a while. Eventually, I will end up trading in 1000 share lots. I consider that a benchmark for me so I now refer to 200-share trades as 1/5 of a position. Yes, I am still in practice mode even though I mostly trade my live account. I see big-boy trading in my future, though!
I was a bit sloppy, adding to losing positions on a number of occasions. I will eventually beat this bad habit. I'm sure of it. Discipline, discipline.
My success rate was over 90% this week, a testament to the fact that I was averaging in on losers instead of setting stops. As such, I traded more hours this week compared to last week yet made less money even with a much better win rate. There's the lesson about adding to losers. More show, less "go." (That is: Nice stats, Less take-home). Adding to losers means you are fading in on the wrong side of a winning move and when the reversal takes place (if it takes place in time), the gains are muted by the averaged cost basis.
Smart trading and the real money is in taking the losses on stop-outs and eventually catching a decent percentage of a nice move to offset them. Not to mention, preventing exposure to the disastrous big move from which you cannot recover.
I also need to formulate an exit plan that makes sense. For so long, I have worked on entries and ignored exits. I get out of far too many of my trades too soon. I am tired of leaving money on the table. It is not as easy as flipping a switch to do it, but it is my goal to take a higher percentage of the moves I am in. After all, I cannot live on $300- $500 per week... $300 to $500 per day is more to my liking! Ha!
-
30 for 33, a 91% win rate. Gain of $357 in 11.25 hours of live trading this week. Average of $31.73 per hour.

July 17th

Back to the markets today after spending the morning on the day-job. I signed into IB about 1:15pm. Played MTG, a lower priced stock, scaling in for a 4/5 position (800 shares) then scaling out when it appeared to not drop as much as I'd hoped. Took a very small profit then moved on, shopping for a better mover.

Got ERX from my IB scans and shorted 2/5 of a position (400 shares) at an average price of $29.71, right at the HOD. (see chart above) -- As has been the case for what seems like an eternity (don't mind the hyperbole), I exited too soon with no real reason, covering at an average price of $29.645 for a small $22 gain. The stock continued to drop through the afternoon and hit a LOD at $28.97 two hours later about 3:35 pm. Had I held, I would have had up to a $296 gain. I took only 7.5% of the move available.

I then traded MELI twice before going back to ERX for three trades. Finally, as the markets approached the close, I found my old friend SKF making some good moves so I scalped a winner on that with a 1/5th position (200 shares). I had missed the two best moves already in SKF by the time I found it (3:30-3:35 and 3:40-3:45 pm candles, 5-min chart).

I'll take my winners, small though they may be... a gain is a gain is a gain.

Hope all of you had a good day; financially or educationally.

-

12 for 12 winners, a 100% win rate. Gain of $108 in 2.75 hours of live trading.