MGB: Journal

Another sweet day, I manage to grab +$760 from NVDA this morning. Then I had to leave to help a friend replace his roof.

I don't know which is harder. Ripping off shingles or daytrading. But I do know I would prefer daytrading over roof repair :)

A good confidence builder today after yesterday, ahem, disaster.

Upon returning from the roof job, I discovered that the market decided to go down big time. Oh boy. I wonder what will happen tomorrow. Big buys or more institutional selling?

re: Hitman
Thanks for the reference to Moby Date Index. That is useful.

Try http://www.market-topology.com for stocks with high correlations. Enter your stock symbol and you should get 5 stocks/indexes with the highest correlations. I don't understand the graphic map so I ignore it. I just pay attention to the top 5 correlations. It will also give you the top 5 more uncorrelated stocks/indexes.

Let me know if that's useful or not.

MGB
 
re: jsmith
<i>Prove you aren't just a big mouth with no skills by posting your picks realtime for one week and we'll all bow down to your trading skills. Otherwise, don't brag about your lies.</i>

Is this directed to me? Or are you making an editorial statement that everyone should be decent and forthright in their journal.

I know I didn't shared how much I lost on Monday but it's pretty embarassing.

Let me know where you stand.

MGB
 
MGB:

He is referring to TraderRX.

Thanks for the link!

One question, what hell is your stop loss? I watched NVDA today and I wonder how do you hold through wiggles.
 
The Market Topology is very interesting. MGB, does this mean that you follow SMH in trying to trade NVDA? According to the map you might be better off following QCOM or EMLX.
Weird stuff.

Anyone making sense of trading according to these mapped correlations?
 
re: Hitman
<i>One question, what hell is your stop loss? I watched NVDA today and I wonder how do you hold through wiggles.</i>

I really don't use a pre-calculated stop loss. I tried intraday trading with a strict stop loss and kept getting whipsawed out of a position or got taken out and then sadly watch the stock go up.

Instead I watch the candlestick patterns. I'm willing to go down $0.50 if that is the bottom of the range. Pretty soon it will break to the downside or to the upside. That's what I watch for. If it breaks to the downside, bye bye! I'm outta there. If it breaks to the upside, I hold on and watch for the next resistance.

Give me your email, I'll send you my detailed transactions for you to look at and perhaps see how I did it.

MGB
 
te_bai@hotmail.com

I guess when you want something you have to do it yourself, I am almost done with the macro, I will send it to Dustin and he can post it here . . .
 
I experimented with pairs trading last month using these correlations. I used the pair LLTC/MXIM (corr 0.9+). What I discovered is that these two stocks often do get out of line often, and usually take 2-4 days to come back together. I set up excel to alert me when the pair deviated more than 1.5 standard deviations from the mean of the average 30 day correlation. Pretty cool stuff. If anyone is interested in looking further into these methods with me I would be interested.
 
Thursday 8, 2001

I didn't trade today. I had to leave early to help a friend with his roof. It gets pretty hot on the roof after 11am PST.

Friday looks to be a tradeable day.

MGB
 
Friday 9, 2001

My first trade was +380 then it was followed by 2 bad trades putting me in negative territory around -760.

I spent the rest of the day making many good trades to dig myself out of the hole. I made it to -330 when my second to last trade was a bad one, pushing me back to around -530. I made one more good trade before quitting for the day.

I executed my buys very well today. I jumped in at the right place most of the time. Unfortunately, a few sell orders didn't kick in as quickly as I would like.

Despite the negative monetary result, I actually feel really good about today. One of the trades was a great short sell. I really nailed the short sell so that's why it feels really good. I'm looking forward to Monday and increasing my experience to trade both sides of the coin (long/short).

19 more trading days until labor day? I will survive.

MGB
 
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