Sam's Day Trading Log (With Charts)

Quote from Sam Morgan:

You are very right about managing the trade, as this is where I have given my money back many at times.
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Exactly what I mean. Last week you saw me give up what had started as a winning trade on SLV and it ended up a losing trade. In peoples mind that was foolish on my part but for me and my trading it does happen. I don't exit until the market gives me an exit signal. But I also got back in the next day and right now I have made back the money I lost plus more. It has to happen that way in order to catch a bigger trend. I have also added to my winning trade this time which has really helped so far. Right now the worse that can happen is a break even but if it continues up I will add to it again and bring up my trailing stop.

The key is cut your losers early and ride your winners. You will lose more often but if your winners are double what your losers are then you are a winner. This works only if you get your position size correct so that you can keep your head during the times you are losing.

I have lost on three trades in a row on the same stock before. But the fourth time I entered I hit a big trend and properly added to my winning position and hit the home run on the Q's. Was using LEAP options on it.
 
02/01:


I'm trying to put a new strategy into work here and it's putting my brain on over-drive here. I'm liking FAS today, till SPY gets to its resistance at which point a short should be good.

In fact, the short is good now, SPY teased previous resistance and is starting to breakdown. I'm going to go back and put a little more work on this new thing I'm trying, so probably won't be back until tomorrow.


Pic. 1:

Trade 1:
LONG:
Entry: $30.88
Exit: $30.98
+$0.10

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=3077751.png">


Total (+/-): +$97.00; [+$100.00-$7.00(commission)]
2011 Net (+/-):+$8216.87
 

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Quote from Sam Morgan:

02/01:


I'm trying to put a new strategy into work here and it's putting my brain on over-drive here. I'm liking FAS today, till SPY gets to its resistance at which point a short should be good.

In fact, the short is good now, SPY teased previous resistance and is starting to breakdown. I'm going to go back and put a little more work on this new thing I'm trying, so probably won't be back until tomorrow.


Pic. 1:

Trade 1:
LONG:
Entry: $30.88
Exit: $30.98
+$0.10

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=3077751.png">


Total (+/-): +$97.00; [+$100.00-$7.00(commission)]
2011 Net (+/-):+$8216.87
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Based on your chart it is a classic sign of old resistance becomes new support. when the price came back down it bounced about 3 times on what was resistance and then continued up. Had it broken out of that support then it could have kept going. Hard to tell while you are in the heat of battle with the market but you know how hindsight is always 20/20.

Good results so far though.
 
Pic. 2:

Trade 2:
LONG:
Entry: $24.69
Exit: $24.58
- $0.11


Trade 3:
LONG:
Entry: $24.83
Exit: $25.33
+$0.50

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=3079343.png">



Total (+/-): +$849.00; [+$870.00-$21.00(commission)]
2011 Net (+/-):+$9065.87
 

Attachments

Nicely Done Sam!.

Sp to trade 3:
Like your entry, stop out and then quick reentry when price validates the move higher. That takes conviction in the approach.
Looking at the Chart, I was at first thinking that part of your 'new' approach is you've opened up your stops some, as I noticed that you didn't close the trade when price showed weakness and price bars actually fell went bearish 10:25 -10:28 and made a 2 bar close below the fast ema. Hmm.
Price moved higher, rolled over and again made several closes, staying below the fast ema, went sideways 10 bars or so and then went lower. The fast ema was starting to downtrend at that time- You exited a couple of bars below the consolidation and I was thinking "this is giving more room than necessary" - and only then I think I realized I was looking at a 1 minute chart ! I think I had expected a 5 min chart ;

Have you decided on a primary time frame to trade in?
The advantage of a faster time frame is earlier entries and exits , and the disadvatage is more false whipsaws that look like valid signals..

Nice Trades !-SD
 
Sam, you have one of the best educational journals here; what a fantastic learning opportunity you've created for students of pure technical price action trading and at no charge. :)
 
Trade 2 and 3 were excellent. They speak volumes as far as your progress in the daytrade world.

If it was me, I would print out that chart of those two trades and have it on my wall near my computer.

Looking at it will remind you of the good, the bad and the ugly of trading
 
Quote from sowterdad:

Looking at the Chart, I was at first thinking that part of your 'new' approach is you've opened up your stops some, as I noticed that you didn't close the trade when price showed weakness and price bars actually fell went bearish 10:25 -10:28 and made a 2 bar close below the fast ema. Hmm.
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I'm still trying to find good ground with my stops. However, you are right in saying that I am starting to leave them a little open. This is something I could not afford to do until recently. What is allowing me to do this is my entry points.

I have just understood the concept of finding that optimal entry point and this is so important as it makes it easier to manage your trade. Getting in at the right entry point, initially allows you to keep your stops tight and there is nothing wrong with doing this. I always thought that stops should be left a little wide to allow for some wiggle room, but this is not the right way to do it (only my opinion). If I enter a trade and it does not go my way (with a tight stop), then my entry was not a good one.

It's easy to spot the failure to make HH/HL or LH/LL, but what is tricky, is to find the optimal entry point within this range.

Now once the trade is moving in my direction, I do ease off a little and let it play as now I can look at it from afar. Lately, I have been lucky and things have been going my way. I do understand that there will be good times and bad. Not that I am tempting fate, but if things do not work out as well, then what I am planning to do is start exiting out sequancially. Better small change in my pocket, than big holes :p


You exited a couple of bars below the consolidation and I was thinking "this is giving more room than necessary" - and only then I think I realized I was looking at a 1 minute chart ! I think I had expected a 5 min chart. Have you decided on a primary time frame to trade in?
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At present, I only use the 5-min chart, with the 1-min used for entry and exit. I also follow the Q's and SPY as required, and follow the HOURLY and WEEKLY chart pattern. Once again, this is something new that I am doing and it has helped me a lot and has improved my bottom line. Though, I am finding it a little difficult as I am constantly going back and forth with all this (in addition to searching for other opportunities)
 
Quote from NoDoji:

Sam, you have one of the best educational journals here; what a fantastic learning opportunity you've created for students of pure technical price action trading and at no charge. :)
More...

I'll let you in on a secret. (refer to the trades I made yesterday)

Trade 1: The entry was made on failure to make new HOD and broke down below LOD.

Trade 2: See the second point:

Quote "LESSONS:

• Trust your reason for entering a trade and don’t change your plan.

• If stopped out, wait patiently for the next opportunity on that same stock as it’s usually the best one.

• Place stops outside of lows and highs, not exactly at them.

/Quote"

The above points/quotes are from a very valuable journal titled: NoDoji's Day Trading Log :p :D ( although a long time ago, it is still very alive!!!)

There is such great info. in there and I refer to it now and then to refresh my memory.
 
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