"A man is not finished when he is defeated. He is finished when he quits."

Monday, March 8, 2010

March 8th




This was very unusual today... my IB simulated trading platform must have been acting up because each time I clicked for a transaction, IB would process the buy or sell a few shares at a time. So, what would normally be a 1000 share trade in CLNE became a 101 share trade over about twenty-five seconds of waiting. And what was intended to be a 1000 share trade in POT became a 65 share trade over about the same time frame. And it was the same when I liquidated the positions... In and out became a slow-motion affair with lots of slippage. I did manage a few paper-bucks gain and the trades would have been good ones had they executed properly.
I have included the POT chart here. The yellow line with a green checkmark is my "unafraid" trade in the direction of momo. (the line points to where the stock was trading when I signed)


It would have given up to 71 cents gain before reversing. And, to further evaluate the trade, I put the short white lines where I felt I would fade the trade as I have in the past. You'll note that I thought the best spots were short at $118.85, short at $119.12 and short at $119.33. It is clear why I am so often averaging a losing trade. I am early on the turn of direction very often. The third try was a beautiful entry spot, though.

I have also included the chart for RIMM, another one which was really moving when I signed in. I didn't bother playing it because the platform was not working properly. I did, however, track it. I also marked it with the green checkmark and yellow line pointing to the spot where I first started looking at it; the spot where I could have jumped into the notable momentum. As of right now, the stock is up $1.40 from that point. Would I have kept it this long? Very unlikely, considering my track record! Ideal exits would have been the failure to punch through the double-top at 1:00pm or the first close below the 17 EMA at 2:25pm.
The point of all this is to reveal the importance of following trend and not trading counter-trend.