gunslinging

I am no longer going to trade stocks priced over $85. They are too risky. The only improvement or positive thing I can make out of today is that I learned a hard lesson: higher priced stocks have built in risk exposure. In the continuing development of my discipline as a trader I will learn how to limit these risks as much as possible, where I can learn to enter positions cautiously and assess things based on (1) how much cap I have (2) my entry and exit plan for each position [even how much I'm willing to lose]

No more gunslinging...

Being Petty

I've decided that this week's improvement has been helpful. I can rest easy knowing that I am more profitable, but these little scalps are becoming pay-cuts. I've averaged dimes of returns instead of quarters on my winners. This can change if I lengthen the time I hold on to a trade. My increase in prudent behaviour is the reason why my performance is seeing a green candle - so I can rely on some swing trades to be big winners.

Its time for some trend trading.

IMPROVEMENTS
-hold the winners longer by looking at the number of hours (or 1/2 hr) a trade has been held, and stick to it

Baby Steps

The only way I can really become a success long term is by taking small gains as they come; making the mile markers smaller. I have completely done away with trying to figure out every movement of this market. It is really hard to be in the rhythm of its motions when fear and pompousness cloud my judgement.

Now is the time for me to re-group and get back on the winning wave - for some time to come.

Comeback is defined by repetition....

Confused Bears

After today I realize that protective stops could be the best thing I could ever use to manage risk. I really didn't have to lose as much as I did. And I need to adapt to switching my suit: what I mean by that is putting on some long positions (bullish) when the time is right. Even though today had such choppy movements I still could've been a more nimble range trader on the long side.

IMPROVEMENTS

-Today confirmed to me that Gold has more potential. I even want to hold it for a few days even weeks! I will be implementing this.

Trendline

From time to time I'll post things about how I've improved my behavior. They will be listed under IMPROVEMENTS

What I've found about trading is that the game is more mental and will toll on the trader's emotions.

The market's price action on Monday notched another green candle. But the $SPX 1050 level could prove to be resistance moving forward. I am patiently observing Tuesday's movement to gauge whether the market will continue moving down, and if that is the case - the bears could probably resume their momentum and I'll continue to build up short positions.

What I've learned from some of Monday's trades is that I've finally garnered the conviction to hold my positions for a few hours longer than normal.

Monday's IMPROVEMENTS

-I blanketed a few shorts (small position size) and held them until my unrealized profit was substantial.

-I was decisive enough to take my position at what I believed to be a market top for the day

- I was not biased in my bearishness