January Trading Journals
- Thread starter Hitman
- Start date
I sometimes read Hitman's journal just to get a perspective on what other traders are doing and how they trade the market. I too have been in a nasty slump since the beginning of the year and had a nasty "prison-style" day if u know what i mean. Qwiktrade, i read your post this morning and it made so much sense to me I had to break my silence in here and reply to it. I found it insightful and extremely helpful to my psychological state. The first thing a person needs to do when in a slump in anything, not just trading, is to "snap out of it". Your post was a perfect "recipe" to snap out of things. Step by step psychological steps to take to get yourself back on track. You're only as big as the shit that aggravates you fellas so hang in there, we'll be okay.
Hey Hitman been reading you for a while, intersting stuff but I just want to know if you could shed some light all these fines and penalties that the SEC/NASD...just curious. 
Nasty, nasty game as I was caught off guard in that nasty gap and trap. Even with reduced size if you can't get any meaningful winners it is just impossible to win the game. 3 for 14 shooting on 12500 shares each way, -106 before commissions, -383 after, no bullets. It is vital that I win Friday's game and get this loss under control before it grows into something worse, today was just a total shut down for me as I couldn't believe how much the futures were up in the morning after the market felt weak as hell yesterday. All day long I could not stick with my biase and was hacked into pieces.
Pre-Market: SOX upgrade and with the futures up so much I had no idea what was going to happen.
9:30: Went long small positions in CRA and got 15 cents before it crapped out. S had good earnings news and it went down and I bought it near the morning low but sold for flat as futures tanked, and watched it go up 1 point. Missed a critical morning fill in LEN and watched it go up 60 cents next 3 prints. DNA gapped up 1.7 point and I actually did diagnose the futures as gap-and-trap, but I had no confidence to put up a bullet and short away, I watched in awe as the stock came all the way to unchanged plus an extra two points, plain amazing!
9:45: Futures came in but Dow was still up big and I just didn't feel the market could come in hard. I tried a small batch of longs in energies (EOG, APC)and a even smaller batch of longs in financials (MXT, LM) and retailors (HD, FD) to test the water and I got a list of stop out's. What really hurted was LM as XBD was the strongest sector of the day, but he had earnings coming out mid-day which I wasn't aware of and he consolidated all day then made a rediculous move to the upside around 1:30 when I almost choked on my Wendy's. Missed out on the home builder rally as I got out of SPF for flat and watched it close up half a point.
11:00: Autopart companies did a Tony Oz 3 day reversal and I caught ETN and BWA at the bottom, out of ETN for flat and out of BWA a half point, missed 1 point a piece. Why? Because all day I was fighting myself on which way the market will go. Sometimes it looked like the market will give up all of its gains and sometimes it looked like the market will close on the high side. The indecisiveness showed in my trades.
2:00: Facing a mere $250 deficit I gave myself another $100 wiggle room as I knew I was shooting a horrendous percentage (2 for 11 at the time), and I kept my size down to make sure that I don't lose much more than I already did. The afternoon saw some really small positions in NSM, LSI, TER, churned in NSM and LSI and left 40 cents on the table with TER.
Awful start for 2002, composure is the key as I absolutely must play hard defense until my offense picks up a little, recent changes in sectors are definitely hurting my performance. Removal of CEX which often provides some very good profit for me even on gap-and-trap days, as those stocks often open unchanged and give a nice 50 cents move before tanking, this is huge as on many days you just need that one winner to push you over the top. No production whatsoever from energy sectors lately as the stocks are stuck in a range and very difficult to score profit from. A look at my top 20 stocks in last six months I see 5 energy stocks and 2 chemicals, when you take those away, you take away a substantial portion of my offense, which has never been my forte. While with the emergency of home builders as of late I have got two home builders in my top 20, it can't make up for the loss of 7 top 20 stocks.
What I need to do is to have better shot selection and get better with stocks in other sectors until the energy stocks become more tradable. A few basket stocks won't hurt either as I really need to get consistent scoring from a few more stocks. When your bread and butter is losing you money it is very difficult to get strong performance, and I need minor tweaks in my watch list and reduce my reliance on energy stocks.
Traders survive bad stretches and excel in good times, hopefully I will be out of this slump soon and then I can take Tony's advice and start to be more selective with my shots. I can see that the way I use super tight, tape based stops will prevent me from ever trading serious size. When you are going for 2000-5000 shares you can no longer lean on the BID and ASK like I do nowadays. The solution would be to use the tape only for entry and exit (pare in and out's) but use the chart to let the trade ride. If I don't increase my holding time I will not be able to trade bigger size, as simple as that. When broad market and daily's all match you just have to let it ride a point. (Autoparts today for example)
But now is not the time to make adjustments, I have to continue my defense until my slump is over . . .
Strength and honor, for the princess, I must draw strength from the depth of my heart, where my love resides . . .
Pre-Market: SOX upgrade and with the futures up so much I had no idea what was going to happen.
9:30: Went long small positions in CRA and got 15 cents before it crapped out. S had good earnings news and it went down and I bought it near the morning low but sold for flat as futures tanked, and watched it go up 1 point. Missed a critical morning fill in LEN and watched it go up 60 cents next 3 prints. DNA gapped up 1.7 point and I actually did diagnose the futures as gap-and-trap, but I had no confidence to put up a bullet and short away, I watched in awe as the stock came all the way to unchanged plus an extra two points, plain amazing!
9:45: Futures came in but Dow was still up big and I just didn't feel the market could come in hard. I tried a small batch of longs in energies (EOG, APC)and a even smaller batch of longs in financials (MXT, LM) and retailors (HD, FD) to test the water and I got a list of stop out's. What really hurted was LM as XBD was the strongest sector of the day, but he had earnings coming out mid-day which I wasn't aware of and he consolidated all day then made a rediculous move to the upside around 1:30 when I almost choked on my Wendy's. Missed out on the home builder rally as I got out of SPF for flat and watched it close up half a point.
11:00: Autopart companies did a Tony Oz 3 day reversal and I caught ETN and BWA at the bottom, out of ETN for flat and out of BWA a half point, missed 1 point a piece. Why? Because all day I was fighting myself on which way the market will go. Sometimes it looked like the market will give up all of its gains and sometimes it looked like the market will close on the high side. The indecisiveness showed in my trades.
2:00: Facing a mere $250 deficit I gave myself another $100 wiggle room as I knew I was shooting a horrendous percentage (2 for 11 at the time), and I kept my size down to make sure that I don't lose much more than I already did. The afternoon saw some really small positions in NSM, LSI, TER, churned in NSM and LSI and left 40 cents on the table with TER.
Awful start for 2002, composure is the key as I absolutely must play hard defense until my offense picks up a little, recent changes in sectors are definitely hurting my performance. Removal of CEX which often provides some very good profit for me even on gap-and-trap days, as those stocks often open unchanged and give a nice 50 cents move before tanking, this is huge as on many days you just need that one winner to push you over the top. No production whatsoever from energy sectors lately as the stocks are stuck in a range and very difficult to score profit from. A look at my top 20 stocks in last six months I see 5 energy stocks and 2 chemicals, when you take those away, you take away a substantial portion of my offense, which has never been my forte. While with the emergency of home builders as of late I have got two home builders in my top 20, it can't make up for the loss of 7 top 20 stocks.
What I need to do is to have better shot selection and get better with stocks in other sectors until the energy stocks become more tradable. A few basket stocks won't hurt either as I really need to get consistent scoring from a few more stocks. When your bread and butter is losing you money it is very difficult to get strong performance, and I need minor tweaks in my watch list and reduce my reliance on energy stocks.
Traders survive bad stretches and excel in good times, hopefully I will be out of this slump soon and then I can take Tony's advice and start to be more selective with my shots. I can see that the way I use super tight, tape based stops will prevent me from ever trading serious size. When you are going for 2000-5000 shares you can no longer lean on the BID and ASK like I do nowadays. The solution would be to use the tape only for entry and exit (pare in and out's) but use the chart to let the trade ride. If I don't increase my holding time I will not be able to trade bigger size, as simple as that. When broad market and daily's all match you just have to let it ride a point. (Autoparts today for example)
But now is not the time to make adjustments, I have to continue my defense until my slump is over . . .
Strength and honor, for the princess, I must draw strength from the depth of my heart, where my love resides . . .
People make a big deal out of the fines when in reality every firm gets them, some gets publicized some do not.
All I can say is Wall Street has always been a dirty game and always will be, this goes from top to bottom, from the biggest institutions to the smallest shops. We do whatever we can to smack down the competition and others do exactly the same thing.
As for recipe to break out of a losing streak, there isn't one. You have only one option, cut back your size and aggression, greatly reduce your expectation and try to work yourself back in the game. Your weaknesses as a trader will be fully exposed in a slump and it is a very effective yet painful way to truly learn how far you have really came. Every style has its weaknesses and a losing streak also help you to further identify them and you must make small adjustments here and there but not a full blown overhaul.
In the end however, if you are in a slump, there are very little you can do about it, you will be frustrated, and your composure level is EVERYTHING when it comes to minimizing the damage. Keep shooting, adjusting, and pray . . .
Just as that I don't believe you can teach psychology I don't believe you can teach a trader how to get out of a losing streak. They have to do it by themselve, you can provide psychological support, make suggestions to their strategies, cut their trading size, but ultimately he has to snap out of it by himself, plain and simple.
All I can say is Wall Street has always been a dirty game and always will be, this goes from top to bottom, from the biggest institutions to the smallest shops. We do whatever we can to smack down the competition and others do exactly the same thing.
As for recipe to break out of a losing streak, there isn't one. You have only one option, cut back your size and aggression, greatly reduce your expectation and try to work yourself back in the game. Your weaknesses as a trader will be fully exposed in a slump and it is a very effective yet painful way to truly learn how far you have really came. Every style has its weaknesses and a losing streak also help you to further identify them and you must make small adjustments here and there but not a full blown overhaul.
In the end however, if you are in a slump, there are very little you can do about it, you will be frustrated, and your composure level is EVERYTHING when it comes to minimizing the damage. Keep shooting, adjusting, and pray . . .
Just as that I don't believe you can teach psychology I don't believe you can teach a trader how to get out of a losing streak. They have to do it by themselve, you can provide psychological support, make suggestions to their strategies, cut their trading size, but ultimately he has to snap out of it by himself, plain and simple.
qwik,
I think you made some very good points. At a certain level, we all know HOW to do it, it becomes a matter of concentration and discipline. I read some advice once on fighting a losing streak. It was to concentrate on taking small profits. Taking profits stems the losses and improves your mental state. I know the systems traders will say "but then you're not trading your method, you're giving your edge away." In the real world a losing streak often means the market is choppy and you are getting whipsawed to death. So taking small profits quickly is actually an adaptive way to trade.
I think you made some very good points. At a certain level, we all know HOW to do it, it becomes a matter of concentration and discipline. I read some advice once on fighting a losing streak. It was to concentrate on taking small profits. Taking profits stems the losses and improves your mental state. I know the systems traders will say "but then you're not trading your method, you're giving your edge away." In the real world a losing streak often means the market is choppy and you are getting whipsawed to death. So taking small profits quickly is actually an adaptive way to trade.
My friend found this incredible site that generates a personal profile based on your favorite colors (mine is black of course). I was stunned that it generated something that is nearly 100% accurate of my personality, check this out:
http://www.colorgenics.com/
Everyone feels despondent at times ... and you are no exception. You are feeling so depressed because it seems that everything that could go wrong has gone wrong and you don't quite know which way to turn. So like the proverbial ostrich - you are trying to bury your head in the sand ... But that won't work. You have to face reality .....
Always anxious to accept the role of the leader, as indeed you often work well with people, but try to stay out of the limelight. You'd like a life of ease with no one to rock the boat... and someone who understands you is so important in your life...
In spite of the fact that you believe that your hopes and ideas are realistic, It is hard for you to accept that your needs and desires are misunderstood by almost everyone within your sphere of influence...and there is no-one to turn to or rely on. Your pent-up emotions and inherent egocentricity make you quick to take offence, but as matters stand you realise that you will have to make the best of things as they are.
You are trying to prove yourself .. not only to yourself.. but also to everyone around you...There is much that you would like to say and do .. but the situation warrants self-restraint .. and that is the last thing that you have on your mind..It would seem that you have an unsatisfied need to ally yourself with others whose standards are as high as your own. You want to be different - to stand out from the crowd. This is subjecting you to considerable stress but you tend to stick to your attitudes despite lack of appreciation. Of course, you are finding the situation uncomfortable and would like nothing better but to break away from it. But you don't like the idea of compromise. Your main problem is that you are unable to resolve the situation because you continually postpone making the necessary decisions ... You feel that if you make the wrong choice this would lead to such opposition that you would not be able to command the esteem of others. It is essential that those around you are prepared to comply with your wishes and respect your opinions. Only when this compliance is established, will you feel at ease and secure.
The need for admiration and to be regarded as "someone special" is perhaps one of the foremost aims in your life at this time. You would like to perhaps do something outrageous or anything that will give you the chance to be recognised as someone special.. This desire has now almost become an obsession and in your own way you are trying to fulfil this "complex" by ensuring you are the centre of attention, both at work or play ... or in the home. Stop trying so hard... and you will find that people will like you for who you are ... not for who you are pretending to be....
http://www.colorgenics.com/
Everyone feels despondent at times ... and you are no exception. You are feeling so depressed because it seems that everything that could go wrong has gone wrong and you don't quite know which way to turn. So like the proverbial ostrich - you are trying to bury your head in the sand ... But that won't work. You have to face reality .....
Always anxious to accept the role of the leader, as indeed you often work well with people, but try to stay out of the limelight. You'd like a life of ease with no one to rock the boat... and someone who understands you is so important in your life...
In spite of the fact that you believe that your hopes and ideas are realistic, It is hard for you to accept that your needs and desires are misunderstood by almost everyone within your sphere of influence...and there is no-one to turn to or rely on. Your pent-up emotions and inherent egocentricity make you quick to take offence, but as matters stand you realise that you will have to make the best of things as they are.
You are trying to prove yourself .. not only to yourself.. but also to everyone around you...There is much that you would like to say and do .. but the situation warrants self-restraint .. and that is the last thing that you have on your mind..It would seem that you have an unsatisfied need to ally yourself with others whose standards are as high as your own. You want to be different - to stand out from the crowd. This is subjecting you to considerable stress but you tend to stick to your attitudes despite lack of appreciation. Of course, you are finding the situation uncomfortable and would like nothing better but to break away from it. But you don't like the idea of compromise. Your main problem is that you are unable to resolve the situation because you continually postpone making the necessary decisions ... You feel that if you make the wrong choice this would lead to such opposition that you would not be able to command the esteem of others. It is essential that those around you are prepared to comply with your wishes and respect your opinions. Only when this compliance is established, will you feel at ease and secure.
The need for admiration and to be regarded as "someone special" is perhaps one of the foremost aims in your life at this time. You would like to perhaps do something outrageous or anything that will give you the chance to be recognised as someone special.. This desire has now almost become an obsession and in your own way you are trying to fulfil this "complex" by ensuring you are the centre of attention, both at work or play ... or in the home. Stop trying so hard... and you will find that people will like you for who you are ... not for who you are pretending to be....
Hitman, Why don't you just concentrate on the stocks that you have been making money on like Homebuiders. You mentioned two of them maybe you should just concentrate on the few stocks be it one two or three and thats it. Concentrate on the ones that have been making money for you the last two days instead of jumpning into 10 to 15 stocks. Just my opinion----Good Luck
Hitman,
I completely sympathize with you at this point. This first month has been extremely difficult. I supposed I've just experienced my first ,"equity drawdown", as we kindly refer to them as. This week has been a nightmare, plain and simple. I'm taking the timeless piece of advice from seasoned traders who have all experienced this, take small profits. Taking profits isn't the problem,,,getting into a profitable trade is. I'm finding with myself right now that I'm too fixated on the tape. I'm waiting for ultimate confirmation,,,i.e. enough people hitting the bids to get short and vice versa, to enter a trade. In this tight market, that's too late as you're certainly buying tops/selling bottoms. This is all due to lack of confidence. Instead I need to stop staring at 1 min charts and the tape and taking the bread and butter setups off the 5 min charts. This will mean going back to basics... fewer shots, smaller share size, bigger stops, longer holding, etc. I think I'm driving myself crazy staring at the tape rather than let the trade ride on the chart, like you said. Comments appreciated.
I completely sympathize with you at this point. This first month has been extremely difficult. I supposed I've just experienced my first ,"equity drawdown", as we kindly refer to them as. This week has been a nightmare, plain and simple. I'm taking the timeless piece of advice from seasoned traders who have all experienced this, take small profits. Taking profits isn't the problem,,,getting into a profitable trade is. I'm finding with myself right now that I'm too fixated on the tape. I'm waiting for ultimate confirmation,,,i.e. enough people hitting the bids to get short and vice versa, to enter a trade. In this tight market, that's too late as you're certainly buying tops/selling bottoms. This is all due to lack of confidence. Instead I need to stop staring at 1 min charts and the tape and taking the bread and butter setups off the 5 min charts. This will mean going back to basics... fewer shots, smaller share size, bigger stops, longer holding, etc. I think I'm driving myself crazy staring at the tape rather than let the trade ride on the chart, like you said. Comments appreciated.