- Today was another good day of trading. The market gapped up big on the open and trended higher for the rest of the day. I was still able to keep my losses small and I scored 2 sizable wins (0.16 and 0.33), riding the trend for most of the move.
- I think my entries are improving. It seems that is helping reduce my risk on each of my positions. I normally try to limit my risk to one ATR(10) on the one minute charts. My target profit is normally 2+ ATR(10). It seems that this has been effective the past two days because my win-to-loss ratio has been respectable.
- I still got stopped out of one of my positions just before it ran up for a 0.30 move. My stop was 0.01 from the lowest print on the shake out. It would have been nice to catch that move. I am still working on my entries to help reduce the odds of being shaken out.
- I still find it easier and more comfortable to buy into support and sell into resistance instead of buying a breakout. It seems I get shaken out of my breakout entries far too often. I need to develop better breakout trading skills because there is not always an excellent entry point at the bottom most support level.
- I played around with the filters in Fidelity's Active Trade Pro software to try and see if I could find a good market breadth indicator, but the filters were not useful. They may be useful for finding other trading candidates, but they are basic filters and there is no customization. Yet another downside of ATP.
- I did miss a couple of moves today. I should just spend a week and enter every time my entry criteria trigger to get a good sense of the win percentage, which would help with my risk management by allowing my to determine an appropriate win-to-loss ratio.
- I felt a little better reading the tape today. On my biggest win there was some huge buying. The price had settled into support for about 5 minutes and I noticed that there were two exchanges with bids over 10000 shares. I was able to get filled on a limit order 0.01 from the low, targeting the price of the large bids. The price began moving upward and the buyers persisted on each small dip. I would keep my stop loss just below the large bid price, riding the trend until the sellers put up some huge offers and the buying dwindled. I was really pleased with my tape reading analysis on this trade. I need to target my buy limit orders coming into support, with large bid orders.
Daily Trading Summary (09/07/11):
Number of trades (round trips) = 7 (3W, 4L)
Trade Size = 1 share
Average Win (Winning %) = $0.167 (43%)
Average Loss (Losing %) = -$0.067 (57%)
Win-to-Loss Ratio = 2.47
Average Return = $0.033
Total Return = $0.23
No comments:
Post a Comment