Sam's Day Trading Log (With Charts)

[Sam Morgan]

Quote from 4re:

That actually looks like a good swing trade opportunity. I would wait for it start coming back up (maybe enter at about 59.00) and you should be able to ride it up to support at 61.59. At that point you could scale out some profits and move your stop up to break even or let it ride, either would be ok.

Larry Connors would enter with a limit order around $52.50. He is looking for it to drop about 10% after it becomes oversold on the RSI 2 period with the daily chart. But I expect that it will pop up tomorrow morning and that entry would not get hit.

That is how I would be looking at it anyway.

From 12/28:

4re, you got this one spot on, but seeing the chart after what it did (reaching a low of $56.08), how would you have handled it?. If this trade was executed on the numbers you had given, it would have come out good.

Your entry point was ~$59.00; I am not seeing this entry point. The exit strategy was sound and to the dot.

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=3054251.png">

 

[Sam Morgan]

Quote from QQQBALL:

hey Sam - if your bad days are two losers for a tennie each, you are doing well. Keep up the good work.

Thanks buddy, but those tennies can add up fast, so hope today turns out well.

 

[Sam Morgan]

Quote from 4re:

Looking at the daily chart SLV is setting up for a nice swing trade. Would look for it to go back up to around 31 but I would like to see one more down day and see it drop to about 27.50 before entering long.

P.S. be careful of over trading

4re, I see you on this one. However, I have a couple of questions. Does the breach of the trend line (circled) concern you?.

At this price, I feel it's right for the picking, so I am thinking of breaking my swinging virginity and will buy half my positions at ~$28.00 and will add the other half if we go to ~$27.50 (which I think it could go to). I am thinking of having my stops at $27.18. What's your shout on this one? Hope you got my back on my first swing

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=3054292.png">

 

[4re]

Quote from Sam Morgan:

From 12/28:

4re, you got this one spot on, but seeing the chart after what it did (reaching a low of $56.08), how would you have handled it?. If this trade was executed on the numbers you had given, it would have come out good.

Your entry point was ~$59.00; I am not seeing this entry point. The exit strategy was sound and to the dot.

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=3054251.png">

The 59 entry would have been a break out trade and the way I would have traded it I would still be in it. I always stay in until the market forces me out. When some people grab their money and run I am doubling up on my trade and letting it run. I get agressive on my winning trades.

 

[4re]

Quote from Sam Morgan:

4re, I see you on this one. However, I have a couple of questions. Does the breach of the trend line (circled) concern you?.

At this price, I feel it's right for the picking, so I am thinking of breaking my swinging virginity and will buy half my positions at ~$28.00 and will add the other half if we go to ~$27.50 (which I think it could go to). I am thinking of having my stops at $27.18. What's your shout on this one? Hope you got my back on my first swing

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=3054292.png">

This one is getting ready for a nice pop. I would like for it to drop little more and become very oversold before taking it. Would jump all over it at $27.

The trend line doesn't really matter for this short of a pop. What does matter to me is that the price is trading above the 200 day SMA (which means long term trend is up and I only go long when price is above the 200 day average) and the RSI 2 and 5 are oversold.

I hope that makes sense.

 

[4re]

I'll keep an eye on SLV and let you know when I would enter. I might even do a real trade on it if everything works out on it.

 

[PropTraderMTL]

Hey Sam,

As promised, I had a read through your journal. Thought I would just make a few points.

Firstly though, I'm not going to tell you how to trade or comment on your strategy at all. I looked through the journal but didn't really look much at the trades but more at the comments you made about them (positive and negative). You learn to trade by yourself... people can give you tips but in the end its all up to you. So here are a couple of observations I made.

• Are you a discretionary trader? It wasn't clear but I assumed you have some system that your using and manually entering/exiting your trades based on the output of the system. I did see a reference to back-testing so not too sure. I'm a discretionary trader so can't really provide much help with the system stuff.
  
• The major thing I saw was that you are trading using a retail account. Wow... congrats if you can day trade profitably with a retail account. The fees on those things are a killer to many trades. Fees are a really important thing in the industry. Keeping fees low is SO IMPORTANT. I didn't notice where your based but you should really look into remote trading for a prop firm. I say this as the fees are lower... much lower!!! You can find one that will give you great leverage, acceptable deposit/payout and a better platform. This is only a suggestion but I can understand why a few recommended you swing trade... I think you should do what you want i.e. day trade. But I believe their comments highlights the fee issue with using a retail broker. I have a friend who day trades prop and then uses a retail account to swing trade his own money.
  
• The other thing I noticed is your attitude. This is extremely important!!! It was great to see how positive you were. How you took on advice but also how you also stuck to your goals as well (ie becoming a successful DAY trader). These are all good personality traits to have. Your also humble which is very important because the market will keep teaching you lessons until your humble or you lose all your $.
  
  Your attitude is so important when it comes to trading successfully. Many of the negative comments you will see here on ET are from bitter traders who have failed to live up to their expectations. Avoid these people like the plague! I like to think of it like this... there are plenty of optimistic traders who lose money but there are hardly any pessimistic traders who are profitable. I see this play out every day on my trading floor. Keep that optimism, have conviction, stay humble and never stop learning
  
• Don't be afraid of trading real $$. I noticed you made the switch. I haven't seen enough of your posts since you switched but I would be interested if you provided a little commentary on how you saw your day. Once I see a few more posts maybe I can help a little.

I Hope 2011 is a great year for you and I will keep watching your journal!

ptMTL

 

[4re]

I am still holding for lower price on SLV. If it doesn't happen I don't trade it.

 

[Sam Morgan]

Hi PTMTL, thanks for visiting.

Quote from PropTraderMTL:

[*]Are you a discretionary trader? It wasn't clear but I assumed you have some system that your using and manually entering/exiting your trades based on the output of the system. I did see a reference to back-testing so not too sure.

Yes and no.

Yes, I do have a system that I am following. Hence, you will see me trade some stocks more than others, as I have rules set for them. Occasionally, if the stock is in a cranky mood, then I will convert to becoming discretionary. However, this is not something I prefer at the moment and I think that it requires experience and discipline. Maybe one day (in the near future).

[*]The major thing I saw was that you are trading using a retail account.

I started with Fidelity; I like their service. but it comes at a huge cost. My first few profitable trades were "losers" due to the commission. I have since moved to IB and am looking into Dorman.

I didn't notice where your based but you should really look into remote trading for a prop firm. I say this as the fees are lower... much lower!!!

How much lower are they?. I pay the usual IB fees ($0.003-0.005/share). I visited a prop firm here, which seemed decent. However, I prefer trading on my own as the emotions and performance of others influences my trading (in a negative manner).

[*]The other thing I noticed is your attitude. This is extremely important!!! It was great to see how positive you were. How you took on advice but also how you also stuck to your goals as well (ie becoming a successful DAY trader). These are all good personality traits to have. Your also humble which is very important because the market will keep teaching you lessons until your humble or you lose all your $.

Thank you for your kind words. They tend to be more empowering to me than you may think. I have decided that this is something I want to be successful at, so if I have a bad day, esp. due to being clumsy, than I take appropriate measure to not have a repeat!!!. Lately, I have been dreaming about candlesticks; I don't know if that's a good thing

[*] Don't be afraid of trading real $$. I noticed you made the switch. I haven't seen enough of your posts since you switched but I would be interested if you provided a little commentary on how you saw your day. Once I see a few more posts maybe I can help a little.

I will do that. I think it is only fair to include a little depth, so as to get the appropriate advice.

PTMTL, thanks for your input.

 

[Sam Morgan]

Quote from 4re:

I am still holding for lower price on SLV. If it doesn't happen I don't trade it.

4re, I got filled half my positions at $28.14 and have the stop at $27.18. If it goes lower without hitting my stop, I will add the other half at ~$27.75 (on the way up).

Btw, how do you decide at what price you want in? how do you determine value?.