Since restarting, rethinking, reevaluating, readjusting, redefining, restrategizing, retooling, and refining my rookie trading skills, October was perhaps the best month I've had since last October when I made about $8K and last December when I made about $19K. As one can see, I believe by staying disciplined and patient, my trades will be much more solid and the gains will take care of itself. I never felt the need to force a trade or to trade just for the sake of making a play. Learning from much more seasoned traders such as Tim, Muddy, and the rest of the folks from GOTS as well as listening to other traders, I am determined to become a much better and more profitable trader. I have taken a boring, yet cautious and more methodical approach to my trading style and my stress level is at an all time low. I've only had whopping five plays during the month as a result of taking a more disciplined and patient approach in order to protect my capital. I can go through several dozen charts at a given night, but being extremely selective helps preserve my capital. I ended the month luckily escaping with a profit that should have been much bigger, but a gain's a gain no matter how small and I'm up almost 30% for the month of October. Patience, discipline, and selectivity play a huge part in my trading strategy.
Current account size: $12960
Account since start of October: $10000
My total gains: +$2960
10.31 gain short DIN: +$306
10.22 gain short TOMO: +$1286
10.17 gain short RDA: +$196
10.9 gain short TMA: +$606
10.6 gain short RZ: +$566
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12 comments:
Nice gain for the month. I'm still learning to trade pennys. Hope i could trade like you one day so i could move back my country to stay with my wife. I read the whole of your blog, is there any particular trading system you use or you just enter on the green to red action?
I see you made 8k and 19k in a couple months last year...why don't you have that in your account so you can day trade freely if necessary?
Also, if you have time sometime, could you write a post detailing how you made so much with a small account...it sounds like when you called yourself a rookie back at the start of your blog you were pulling our legs!
jonnhl...i've styled my trading after Tim - the guy's good and he makes trading simple and understandable. The folks at GOTS such as 13th, Muddy, and Laura are also people I try to emulate. Basically, I try to look for stocks that have made such a huge run in a short amount of time while paying attention to price action and volume, and then I bet against them holding their tremendous gains. I used to pay attention to fancy chart indicators such as MACD, RSI, MA's etc, but I've noticed that the traders I follow don't really use them - so I've stopped. They didn't really work for me anyway.
matty...back during those months, I was going long on big stock such as AAPL, RIMM, and GRMN, while Jim Cramer and the Fast Money crew. The DOW was at atmospheric levels at around 14K also. I swore I knew what I was doing and everything I touched turned to gold, but then the Market started declining around January 08 and continued downward - my strategy of going long wasn't working and I started losing money being down big about 10% in January and another 5% in February. I did a lot of plays where I'd buy a stock that would be running green into the close and the momentum would carry on to the next morning - then I'd quickly exit my position with a profit. So, I took what I made and put it in a CD at my bank and did some shopping. It's way easier to lose money in the Market than it is to gain, so I knew I had to restudy and readapt my strategy because I started losing more than I was profiting. I started trading May 2007 with 4K and I had an account high of 29K by December 2008. Sure I was over the PDT mark, but that just lead to overtrading and forcing plays, and even using margin. I simply studied and went back to the drawing board - and here I am now!
matty...I am such a rookie when it comes to trading because I barely started back in May 07. I have tons to learn! I used to listen a lot to Jim Cramer and the crew on Fast Money - but those guys were't more correct than the guy next door! Studying helps and I just buried my head in finance books - I've listed a few on the front page. Emulating Tim, Muddy, 13th, and Laura also made my strategy better. I enjoy taking the short position much more! About the post you were requesting...where you referring to my October trades? I've mentioned them in my blog as to why I've played them, but let me know if you have specic questions.
This is phenomenal. Congratulations, you completely deserved it!
I find it very interesting that after making money in Stock Market instead of getting carried away, you decided to study more. In the book, 'Mastering the Trade', author says that the biggest enemy of a trader is the 'winners'. Winners make you believe that you are better than what you really are and you trade recklessly. It's great to know that you did not fall in that trap.
I really like how you play shorts over multiple days. I am going to try that strategy.
And talking about patience, it is so difficult to stand on the side when people are making alerts in the chat room as well as you see your potential watches making move. But holding back oneself and only playing that perfect setup is incredibly hard. I know, I find it very hard.
Anyway, congratulations once again and thank you for sharing. I really appreciate it.
Hey torello (that's kind of a badass first name btw), thanks for the comments, that's all I was curious about! That second paragraph in my first comment I meant (but didn't specify, whoops) those big profits you had back last year, but you just answered it, so thanks.
And yes, I have to echo the congratulations on a great month.
Matty...Margin. It's basically like playing with fire. Tim doesn't use margin and now I know why he doesn't.
Ramtajogi...I'm a big nerd as well as a Market junkie, so I'm going to have to look at that book sir! Education unlocks so much! For a time, I felt so invincible...but then came some pretty big losses, pretty expensive lessons from January to the beginning of March. My account was bleeding. You nailed it right on the head...I was trading so recklessly using margin, trading earnings reports, as well company outlooks! I was no longer a trader, but a gambler. Then I discovered shortselling pennystocks...and IT WORKS! It sucks when you're watching on the sidelines while everyone it seems like theyre banking. The great thing about the Market is that you can sit and wait for the perfect pitch as long as you feel like you have to. Most importantly, shorting pennystocks is much less stressful to me.
Ramtajogi...You are wise indeed!
Nice October performance, Il Torello!
Yng...thanks so much!
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