An NYSE Scalper's Tale - A Trader's Diary

Wednesday, September 27, 2006

The Anti-Trader

Gross: -$184.16
Net: -$313.88
Loss From Top: $438.19
Trades: 84
Shares Traded: 110600

Stocks Traded Today (net profit/loss):
Corning (GLW): +$203.63
Walmart (WMT): +$19.68
Exxon Mobil (XOM): +$7.02
Motorola (MOT): -$101.6
AT&T (T): -$110.82
Home Depot (HD): -$144.78
Advanced Micro Devices (AMD): -$186.95

Today I did everything that we were all taught that traders are NOT supposed to do.

Let's see:
  • I broke my trading rules
  • I exited my winners too soon
  • I held on to losers too long
  • I was not patient enough to wait for good setups
  • I overtraded on a day when there should have been fewer trades
  • I traded with too much emotion
  • I revenge traded
  • I put on positions that were too big given the situation
  • I started blaming the markets for not going anywhere
  • I started trading like I just didn't care whether the position would go my way or not (i.e. I started saying things like "I don't care if I lose $1000 on this trade, I'm gonna hold this sucker until it becomes a winner")
All of the above describes the anti-trader - the characteristics a trader is not supposed to have.

Overall, just another frustrating day for me. And I can certainly see why it was frustrating - all day we chopped all over the bloody place.

Given my current state of mind, I just got frustrated because the markets were not giving me opportunities for me to try to turn my trading around.

Anyways, I'm going to keep this post short. It was another day in which I knew what I did wrong (everything that describes the anti-trader).

Tonight I just want to get my mind off trading. The more I think about trading, the more it frustrates me and the more frustrated I get, the more stressed out I get.

Maybe tonight I'll just work on my other blog...

Good Trades
10:18AM - Corning (GLW) was downtrending and so were the Futures. I went short when some size broke. I got out as follows: 5-cent winner (300 shares), 9-cent winner (2200 shares), 10-cent winner (500 shares) ($263 profit before fees ; In: 10:18:56AM ; Short 3000 shares @ $24.40 ; Out: Did not record)

Bad Trades
12:44PM - AMD was downtrending while the Futures were flat. I went short at $25.90 hoping that AMD would continue it's downtrend. It bounced high enough to force me out. I got out as follows: 8-cent loser (1000 shares), 9-cent loser (1000 shares) ($170 loser before fees ; Short 2000 shares @ $25.90 ; Out: Did not record)

5 Comments:

  • Did you mention a few weeks ago that you were at a make-or-break point because you had goals to meet as to whether you were going to be a trader or not? If I remember correctly. This could be putting a lot of pressure on you.

    By Anonymous Anonymous, at September 27, 2006 8:11 p.m.  

  • I'm saving this post in my bookmarks and may even print it out for a space next to the monitor - its that helpful a reminder of the discipline that's needed for this. Its good you recognize the emotions at play from the trading session. If you haven't read the writings of Dr. Brett Steenbarger on the positive behaviors one can adopt when trading, you should check out his blog. I am also glad to offer you a trial of Trade-Ideas if you think some time with this decision support tool would help. Email david "at" trade-ideas.com. Good luck.

    By Blogger D TradeIdeas, at September 27, 2006 8:52 p.m.  

  • JC, you are right. It is time for you to work on another blog tonight. Well, just tonight. Keep cool, I am sure you will make a come back.

    Rest well.

    btw, I will make a link to this post. These are good points that I just have to remind myself.

    By Anonymous Gav, at September 27, 2006 9:03 p.m.  

  • To all,

    Thanks for your comments.

    Anon@8:11PM,
    I believe that you might be right. A while back I said I was going to give myself till the end of the year to see where I can take this, however this might be giving me added pressure to do something everyday. Lately I've been taking it more personally everytime I lose money, which leads me to trade too emotionally. I think I've just got to approach this with a clear mind.

    D TradeIdeas,
    Thanks for the advice. I check Dr. Steenbarger's blog often, but I think I should really pay attention to what he has written about. I might take you up on that offer at Trade-Ideas - in fact, I was recently considering your trading tool...

    Gav,
    Yup - I think I might be thinking about trading too much and the more I think about it, the more it eats me up. Maybe I need a break...I'll see what happens Thursday - if things don't go too well, I might just take Friday off and call it a month. We'll see.

    By Blogger J.C., at September 28, 2006 7:29 a.m.  

  • Keep posting, please.

    By Anonymous Anonymous, at November 13, 2006 1:48 a.m.  

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