RamtaJogi— Hacking Life for Money and Fame.

1. MELA

2. MRNA

3. DRYS

4. ARNA

Well, guess what, another RED day (loss of ~60$) for me!

It’s entirely my fault. I had two good winning trades, one in HIG (up by 315$) and one in DRYS (100$). Instead of leaving these two tickers on their own, I decided to play them again and lost money. Not only that, I played COCO based on chatroom alert without really doing any due diligence. Tried to take short position in FAZ but it moved extremely fast against me and I lost almost a dollar per share. And well, lost some chump change on ARNA trade.

If I look at last 3 days, I entered some trades randomly just because I knew I can close the position if needed. This is definitely because I am high on the freedom of PDT. If I would have been under PDT, I wouldn’t have traded COCO today and ANX yesterday. I think I need to calm down and make sure that excitement doesn’t get in my head. After doing an excellent trade with HIG today, I thought of myself as invincible and started trading recklessly.

From the excellent site ‘The Big Picture’, this quote suits to my situation perfectly:

“It is the markets’ job to reallocate money from the ignorant to the intelligent, from the lazy to the hard working and studious; from the naive to the educated, and from the speculator gambler to the investor.”

Today, I acted naive and gambler and the Market took my money away.

What next? I have few thoughts:

1. As a punishment of my naive trading, I am going to allow myself only 2 trades per day before I start trading well. if I break this rule, no trading for a day for me. If you read this blog, remind me in case I break this rule.

2. I won’t trade a stock for which 1) I haven’t studied the chart 2) I don’t know the support/resistance on top of my head.

3. Put at least 5 watches every night for the next trading day. Even though I won’t trade all of them, make sure I study their chart the next day and see if they behaved like I thought they would.

Let me know if you have any other thoughts.

RJ

Status as of end of Feb 12th:

Positions closed for Gain: HIG (135$), RF (17$)

Positions closed for Loss: ARNA (-8$), COCO (-60$), FAZ (-73$), DRYS (-60$), BAC (-10$),

Open Positions: None

1. HIG – Short. COO Resigned. Pre loser.

2. AIB – Short. Pre loser.

3. DRYS – Long/Short. Pre loser. Positive E/R.

4. LJPC – Long/Short. Biotech company. Lost 86% in pre.

5. FAZ – Trade the Momo. I am going to give FAZ a shot with small position (100 shares).

Today is my third RED day (lost 100$) in a row. I played RF, FITB, ANX and ARNA.

1. RF – Decent enough trade, made 100$. Though I did not trade as per my plan, I bought only 1000 shares instead of 2000 shares.

2. FITB – 110$ loss. Unlike other financials, FITB tanked BIG time after initial climb up and it could never recover from it.

3. ANX – Bad trade. I was down by 400$ on FITB so I was looking for some other opportunities to make money. Muddy alerted ANX hitting HOD in the chatroom. I entered and exited at 0.20, losing money in commissions.

4. ARNA – Another trade which I shouldn’t have entered. ARNA was a Tim Alert and he had covered his short. So the stock went from 6.35 to 6.90. While it was moving up, I shorted 500 shares at 6.70, thinking that it will not go beyond this. Bad idea! It continued it’s upward march and went from 6.70 to 6.90. I covered at 6.80 for 65$ loss. Just after I covered, it went to 6.70. I am getting the same feeling as Yng, it feels like someone is out there to get me!

And yes, I didn’t play DRYS and it tanked by almost a dollar!

Not only that, I ignored another financial XL, which moved up by almost 2$!

Anyway, I am not sure what to do next. I don’t know why I am always trading the stocks which doesn’t move much OR moves in completely opposite direction as soon as I enter.

I think one solution could be the Scottrade HOD list. As Yng discusses on his blog, by using HOD list you can make sure that you are trading those stocks which are on the move. Hopefully, I will be able to ride the move without getting hurt.

I also ordered Brian’s book on Technical Analysis to learn more about how to read the charts and price/volume action.

And the most important thing I need to do is, study lots of charts. Especially the charts of the dayrangers for the running week.

Once I get back home, I will also post analysis of the trades I did, I would like your inputs on where I went wrong.

Trade well,

RJ.

Status as of end of Feb 10th:

Positions closed for Gain: RF (100$)

Positions closed for Loss: FITB (-110$), ANX (-25$), ARNA (-65$)

Open Positions: None

I am not going to be able to run any scans so I browsed through various blogs to find some watches and I mostly like what IL has posted on his blog.

1. RF

As part of financials sell off, dropped more than 30% today. For last couple of days, RF was in a rebound mode since hitting it’s 52 week low of 2.35. If it shows solid support at 3.2, it could be a good entry point. 3.5 could be price level for closing half the position and remaining could be sold based on the price action.
Alternatively, if sell off continues tomorrow and it cracks the 3$ support, watch out below! When it cracked below 3$ on 2/2, it cracked up to 2.7$ and recovered.

RF - Watch for 11th Feb

RF has so far moved up  to 3.55 from closing price of 3.24. There is a strong chance that RF will move up tomorrow.

My position size: 2000 shares.

2. FITB

Another finance company, dropped 25% today. Good support at 2$. Intra day it likes to move between 2.2, 2.4, 2.6, 2.8. I would try to enter/exit near these price points.

FITB - Watch for 11th Feb

Position size: 3000 shares

3. DRYS.

Well, what can I say, it’s my favorite. 6$ is very SOLID support/resistance. After dropping from 6.5 to 5.10, it moved back up till 5.78. I think it will try to touch 6$ again and that will be the time to short! Position size: 1000 shares.

Hm.. I guess these many watches are enough for me. I want to study more charts but I need to sleep early so that I can watch pre-action tomorrow.

Good luck,

RJ