Lost another 100$ today.
This confirms to me that the 700$ I made with DRYS was pure luck. It wasn’t because I was a smart trader.
Anyway, Micheal aka Reaper is writing a series on ‘You Want to Be a Trader?’ and in his most recent post he talks about having a trading plan and discipline to follow it. After reading that post, I realized that I don’t really have a trading plan. None. Nothing. I get up in the morning, see the pre activity and trade what I feel about certain stocks. No planning about entry, exit, stop losses, nothing.
I think I am going to go back to my earlier method where I prepare my nightly watch list along with my thoughts and ideas about particular stocks. I think I should focus on only those stocks which I have studied carefully so that I can make better decisions about entry/exit. As I have read somewhere, ‘Plan the trade, trade the plan’.
RJ
Status as of end of Feb 10th:
Positions closed for Gain: ARNA (68$), MMPI (26$)
Positions closed for Loss: BKUNA (-189$)
Open Positions: None
3 responses so far ↓
1 Charlie G. // Feb 10, 2009 at 8:59 pm
Good post, I just wrote down my plan. It may not be the best one, it can be changed / tweaked later. The challenge is following it – discipline can be hard. That series by Michael Goode is superb.
2 RJ // Feb 10, 2009 at 11:16 pm
Charlie,
That trading plan/strategy document looks awesome! I was thinking about something similar. I hope you don’t mind if I copy it and use it.
Thanks!
3 Charlie G. // Feb 11, 2009 at 12:29 am
That’s why I posted it so please use and make better. I’m not sure about all the specific rules. Some of it tied to the way a chart looks that can’t be put down in words. In any case, I’m getting closer to determine:
Do my rules work?
Or my rules are working because I’m not following them?
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