Significant day

Today I traded CFC, very thin stock. Matt told me about his position trading for past few days and I thought that this is the direction that I am going to, so I try to learn it. I ended up losing big and wining big. Although my day ended negative but I am happy that I tried this new strategy. One thing to note is that I should not trade too many shares with such thin stock as I am not fast enough in getting out my losers and also support/resistance level is very important too. So look carefully into them. Matt gave me a very useful report of his trades, basically describes why and when he got into trades. Anyway. I think I have plenty of rooms to improve. So be patient.

Chopping Market’s personality

Today’s market is chopping, hanging around a small range. There is no much volume. Good that I recognized it and stop trading when there was no real movement and took small profit every now and then. I kept my net positive.

About today’s market, there’s a good read in traderfeed about today’s market

"reduced volume compared with recent norms; drying up of volume as we approach range extremes; choppy trade with frequent reversals of market moves–a sign that locals are dominating trade; and the absence of trending moves in markets that often drive stocks (bonds, currencies). It’s much easier to frame intraday trading ideas if you can figure out the character of the trading day."

Via TraderFeed

It’s important to get a sense of the market before going into any trade.

Days of struggling~

I am struggling to be positive these days. Net positive. I am not consistent enough. I win big and I lose big. The good thing is that I am improving everyday and learn things everyday!

Treating trading as a business, is an excellent way of looking at day trading!

Today’s trade, up and down!

I was up about 20 net in the morning. The market went up and up and I loss all my profit, ended my day with a net -30. I was quite a consistent winner in the morning, trading HD and GLW and made good winner in AMD. But as the market speeded up, I lost my patience, got into trades for no particular reason except for chasing trades after one and another.

I need to be more patient and really trade for the trend. SLOW DOWN!

Some realistic views on trading

* You can not take a $5,000 account and make $2,000 a month with it

* You will not have more freedom then a regular job for the first few years

* You can not learn this business by devoting less then 4 hours a day to it. If you don’t have the time, you may wish to reconsider.

* Becoming a successful trader will take anywhere from 6 months to years on end. Depeding on your mindset and determination. Trying a method, book, system or service for a week is a waste of money.

* If you trade with money you need or are counting on, you’ll fail. This is almost 100% You need to have a savings or seconday source of income while your learning.

* Every method has draw downs and risk.

* If something seems too good to be true, IT IS.

* There is no method with small stops and huge gains

* Taking stops are a normal every day part of trading. Think of them as a business expenses. If you have a restaurant you must pay for product (shell out money) in order to sell it for a profit.

* The holy grail of day trading is realizing there is no holy grail

* Day trading is not easy and requires a disciplined person who can stick to a plan

* Don’t expect too much. If your making $900 a month on an account of $10,000 or less, you’re out performing 99% of fund managers on the planet.

* Jumping around from method to method will only ensure the quick demise of your trading account.

* Believe everything you read above and avoid having to find it out the hard way! It’s brutally honest and may detour you from wanting to continue in this business. Making consistent money is a reasonable goal, getting rich quick is not.

From puretick.com