May 12th

Finally, a chance to sit at the computer. albeit for only an hour or so. My construction project has been keeping me busy because of a mid-june deadline, along with day-job because the Spring is one of my busiest seasons.

The paper-trades yesterday were in RIG. First was a long as soon as I logged in, with an eye toward just jumping on momo and looking for the turn to get out. That is exactly how I played it, a near perfect trade for me. But, then I went long again at a spot where I thought a reversal might occur. Wrong idea... in retrospect, I didn't wait for a signal. I only guessed. I am not quite ready for prime-time, it seems! I held the position and added to the losing trade at points where I thought a turn might occur, again not waiting for a signal. Finally, I saw my signal at approx 67.15, then added three positions there. That spot ended up being the low of the day for RIG; a primary reversal. I exited with a decent gain on all but one position, then went to a day-job appointment. One of my weakest skills is recognizing when the momo is moving against me. I haven't really ever set stops but have tried to train myself to "see" when a trade is bad then trust my judgement. Of course, this is too risky a strategy for real money. I'm hoping to refine my senses to know when the trade is bad but stops must be set and adhered to, if I am going to have any shot at trading survival.

Although it has been part-time, I have been watching the market enough over the past year to recognize the signals of reversal, minor and primary. My method needs refinement and I still am fighting the urge to average on a losing trade rather than reverse the trade or exit and wait for a better spot to enter. This urge to hold a losing trade definitely corresponds to times when I am under the stress of daily life. This is a pattern in my trading I've observed more than a few times. The first step in fixing something is recognizing the problem.

We don't trade in a vacuum.