December Trading Journals

I took some time to read your posts on this thread and see that you go through a lot of the same things we do on a daily basis. You make good points about how traders handle market events in a dramatically different ways, and that even the best traders (your "team leader") lose it at times.

The Psychology involved in trading is difficult to teach, and even more difficult to enforce (how do you tell someone "not" to think a certain way?).

Between the "freezing" and the "panics" and the other similar conditions encountered it makes it tough for new traders to get through their first year or two. We do our best to "objectify" each situation by telling them that it (what "it" is) has happened before, and will happen again, and that it is only money at this point, and that they should not get "mental" with it. As long as they are still "in the game" then they can get the money back.

Anyway, just thought I would say "good job" with your comments on this thread, and that I think you bring out some excellent points. :-)
 
Pulling teeth today but I was able to sweep the week 5 and 0. I wasn't really into trading today with a light flu and the game was really rough with massive. 10300 shares on 5 of 9 shooting, +570 before commissions, +278 after, 1 bullet.

Pre-Market: DYN/MIR/EPG/CPN got some decent words and I looked at WMB/NRG (couldn't get a good fill off the open but they reversed fast anyway).

9:30: Bought BHI on OSX strength and was hit for 20 cents, tried again thought it was a shakeout hit for another 15 cents, when it did ran for good I wasn't long. SOX going up got AMD at 15.77 for 20 cents, shorted it on the way down for a quarter. Thought CEX may be good went long APD lost 10 cents.

9:42: One trade that saved my bacon today, AXP was filling its gap, HI/COF hitting new low's, bulleted ACF 30.23 (futures felt really strange to be up that much and I thought it was a gap and trap). Got 75 cents but unfortunately because there was no offer I wasn't sure and didn't do enough size. Churned that bullet away rest of the day but never lost the initial profit.

10:43: Got EPG on XNG strength, got out for flat.

2:34: BTK strength but it was all AMGN, long DNA scored just 10 cents. Got AXP on a pullback for a quarter, BBY on a pullback for 10 cents scalp. Really lame game but a win is a win and I will be here Monday, as I try not to miss any games :-)
 
Don,

I was wonder what exactly are "year enders"??

Are they stocks that are about to be dumped heavly by the fund managers for window dressing or are you talking about taking positions into next year for tax discounts.

thnx

:)
 
Very light game as the market was very choppy, a win is a win however and small but accurate shots carried the day for me. 5300 shares each way on 7 of 10 shooting, +615 before commissions, +490 after, no bullets.

Pre-Market: Ghost town, and I knew it because I came in late and there were still bananas in our morning fruit basket.

9:30: BTK index ran up and took CRA and DNA, took half a point in DNA, 20 cents in CRA. No volume whatsoever and when the BIDs were hit they really came in hard. Missed the energy move but did get DO lagger for 25 cents. Chemicals ran up and took APD for 20 cents.

10:15: SOX bounced off Friday's low and I had small positions in NSM, ADI, AMD, TER, unfortunately there is insufficient volatility and I ended up breaking even after commissions on those. Scored a 5 cents scalp on LM and 10 cents scalp on AGE on XBD movement and the game is over.

Don:

I am not sure if some of our bigger traders are doing any year enders this year. Most of us won't touch it.
 
Hitman,

Just read your post on filters and would have to agree that picking bottoms should not be a part of a newbies game as a developing trader must first trade their bread and butter stocks in order to gain confidence and discipline.

I happened to trade at the same place your new guys came from. During my first couple weeks, I was net positive trading a group of stocks that I felt comfortable with. However, the head trader you refer to began pushing me to incorporate the filters. As soon as I began to incorporate the filters for stock selection, my p&l went downhill and I grew frustrated. I realized that the filters did not work well in this market environment and only caused me to ineffectively pick bottoms and tops, thus hindering the discipline I developed when I traded my bread and butter stocks.

I think it would be a good idea to take a couple of your new guys off the filter for a few days and see how they perform. Maybe it will help them with their discipline and thus restore their confidence.
 
Rather than discarding the filters, simply use the filters to trade the trend, not to trade against the trend (i.e. not to bottom pick or top-tick).


 
Hitman,

If the bottom-picking filters are killing your guys, I have a solution. One day follow the filter but fade every signal, ie short the buys and vice versa. With luck you should nail a couple of big winners and ride them for a couple of points. End of filter issue.
 
Originally posted by AAAintheBeltway
Hitman,

If the bottom-picking filters are killing your guys, I have a solution. One day follow the filter but fade every signal, ie short the buys and vice versa. With luck you should nail a couple of big winners and ride them for a couple of points. End of filter issue.
More...

... which is precisely what I said!! :D
 
The problem with any filter is by the time filter shows the signal half of the trade is already done, and it really takes a lot of effort to learn what signals to take and what signals to avoid.

I firmly believe new traders should develop a bread and butter game and stop worrying about the filters. It is not the weapons a trader has that makes a good trader, it is the traders that uses the weapons to make them good weapons.
 
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