Friday, January 23, 2009

exciting yet confusing day

i was really looking forward to trading today.  i am on a under 25K capital restriction, where i can only do 3 day trades in 5 trading days.  that's because i lost a lot of money :)  but i am building it back.  one step at a time.  it's frustrating in that before i went in and out of positions really, really fast.  you get good enough at it, you can make $500 easy on these wide volatility moves and all those add up.  now, i have to double think my positions and i try to maximize my return, which causes problems such as today (more about that later).  also, now i try to do more over night's, which don't count as day trades, but are riskier overall.  that's why i haven't traded for the last 3 trading sessions.

in any case, i was so excited, that i didn't go to sleep till 6:30 am.  i know, i'm crazy.  the alarm rang at 8:30 am and i was way too tired and i decided to trade later in the afternoon.  i only had one day trade for the day anyway, so it didn't really matter.  i woke in the afternoon.  the morning had been way oversold, so a nice rally was developing, yet i didn't really believe in it and decided to short either IBM or AAPL.  i calculated buy levels and waited and waited and in all that waiting i got kinda confused and finally bought IBM but not at the best levels.  it happens.  you second guess yourself to death over time.  sometimes, my best trades happen when i just decide on a buy/sell level quickly.  second guessing is just killer.  get the big picture and just make a play.  quit it if it goes against you.  easier said than done.

the buy is not too bad.  2:30 pm market is tanking....lalala...i turn on the music, light a cigarette and am prancing around.  now based on analysis i had set a sell level earlier of a +1 profit, which i thought was reasonable.  IBM was close to it about 30 cents off.  so i'm prancing about and all of a sudden it goes down that 30 and i have my sell level.  but, what do i do, i get greedy and wait some more.  it goes back up 30 and after that it never comes down to that level again for the rest of the afternoon.  so basically, i got greedy, ignored my sell level, which was superbly calculated and so lost out on an easy 1 K.  fuck.  merde.  i cursed myself for the rest of the hour.  

i could have sold for a + .5 profit...but IBM is showing weakness, so i will hold over the weekend.  which i hate doing, due to time decay.  oh well, at least my day trade was not wasted and i can now use it next week.  and IBM may well tank.  CAT is reporting Monday and that should suck.  but, i am fearful of a rally.  it could come anytime.  creep up on ya.

i try not to use too many "but's" in my sentences, but that's trading...nothing is concrete, everything has a fucking "butt".

it's friday.  i guess i'll go and get drunk, but it would have been way more fun with that little profit under my belt.

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