Welcome To The Jungle, My Trading Jungle

Great week for futures trading,

2008-07-11T08:52:00.000-07:00

While I've had my ups and downs real-time paper trading my futures strategies, it looks like things may, may be coming together. I think much depends on market action, not my system, so the question is: what makes a market good to trade or bad to trade? The remarkable fact is my trend system did very well this week even though the market saw many, many intraday reversals...

For the week:

79 trades, 274 contracts (counting both buys and sells), +$1479.20

For the record, last week was:

58 trades, 252 contracts (buys and sells), +$918.72

My biggest issue going forward is going to be commissions and margin requirements. I am planning on trading a ~3k to 5k account, so margins will hurt. Also, commissions look to be ~$5/round trip, so I'd be paying ~$400 this week and ~$300 last week for commissions. There are ways to get around commissions, but not with the size available with the small account. I'll post a futures broker review later. Oh, yeah, then taxes, f' me. Once I get up and running, I may trade black box style in a managed futures retirement account--fun, and f' the tax man.

Good weekend all,
Masterjaz out

Happy 4th

2008-07-03T11:31:00.001-07:00

Nothing much to say, pulled some paper profits and getting ready for the holiday. Back to the markets on Monday.

Masterjaz out

Best day ever

2008-07-02T12:52:00.000-07:00

Well at least on paper, got killed on my real positions. But that is why I want to get going with futures as a hedge for my long-term portfolios.

Lots of activity today and could have been better had I not gone to lunch with family. But, family comes first and there will always be more days like today.

Masterjaz out

Screenshot of paper trading,

2008-06-30T14:37:00.001-07:00

Just to show wincity and others that I am really paper trading and the PnL is legitimate, here is a screenshot from today. Maybe I'll post a shot everyday until I go live.

I am currently testing a couple systems before risking real capital. My first system worked only so, so and I got killed today. I'll only be trading ~$3000 account, so a -$290 day hurts, bad, real bad. That's why I'm testing. I am learning that it is all about stops, nothing else matters.

For now,
Masterjaz out

F' the SEC and Pattern Day Trading restrictions...

2008-05-15T14:25:00.000-07:00

I'm off to futures, but testing rigorously as I can see a blowout in my future. Posts will start once I'm trading for real. Right now it is all paper, but I can still dream...

Oh crude...

Maybe I'll even join that VO thing, a sure way to mediocrity.

Masterjaz out

Double

2008-04-23T15:22:00.000-07:00

Always easier to post winners over losers. Good trade today, still working on objectivity, namely, when to sell. Today sold as I hit 1% targets.

TSFG:

Gross: +$26.50, net +$22.46

Tomorrow?
Masterjaz out

Way behind...

2008-04-23T12:52:00.000-07:00

Took this trade on 4/17/2008, nothing much to say. Great looking setup, sold at the bottom, watched stock pop. No worries, at least it was objective. It was also the final trade for the week, so weekend numbers follow...

EXPE:

Gross: -$9.48, net -$11.92

As for the week: Balance is $2904.04, lost a whopping -$0.58 or 0.02%, 2 trades with 50% winning %, profit factor of 0.95. In short, a blah week.

Until next week,
Masterjaz out

Monday trade...

2008-04-14T16:01:00.001-07:00

Good start to the week. As shown in the screenshot, I was able to catch a perfectly formed counter-trend reversal and just about hit the highs and lows. Too bad I did not get a complete fill, but that's the way it goes.

OMRI:

Gross: +$14.60, net +$11.34 (call it a double...)

For now,
Masterjaz out

Good end to the week...

2008-04-13T18:34:00.000-07:00

Good trade on Friday, perfect setup, although I did not maximize my profits as I should. I'm fantastic at taking full losses and partial wins...

APOG:

Gross: +$17.57, net +$14.13

Weekend balance: $2904.62, -$14.02 (-0.48%) for the week, 1 winner out of 3 trades, 0.50 profit factor.

Next week starts in 12 hours...

Masterjaz out

So right, so wrong...

2008-04-10T15:33:00.000-07:00

Beginning to think exits are everything...

RVBD:

Gross: -$11.75, net -$15.79

Wow,
Masterjaz out

New Week, Ground out

2008-04-07T16:14:00.000-07:00

Not that anyone has been banging down the door, but I'll get weekend numbers posted soon. Beautiful setup today in CTRN, but it just did not reverse. Good trade, good patience, accidental sale (oops). Stock also a little too thin for my tastes...

CTRN:

Gross: -$8.63, net -$11.67

Always another setup...

Masterjaz out

Ground out...

2008-04-01T13:39:00.000-07:00

Another attempt at the QID, small loser, perfect mechanics

QID:
Gross: -$3.60, net -$5.64

Masterjaz out

Dope, way behind with updates...

2008-03-31T13:59:00.000-07:00

Real quick, nothing much as changed with respect to wins and losses, but getting better with execution.

Thursday:

Nothing much to say about this one, a good setup, good execution, just got stopped out before the run. I am looking at how to set stops, because this hurts just a little. On the flipside, I am becoming quite mechanical at selling when a stock is not working...

QLD:

Gross: -$9.60, net -$12.64

Weekend balance: $2927.08, down -1.51%, 0 winners out of 3 trades, profit factor of 0

Monday:

Better setup and very, very patient entry. Stock took forever to grind higher, penny by penny and I ultimately gave up and went back to work. Had I held, winner! As I stated earlier, good mechanical execution with losers, now need to do the same for winners...I'll be working.

QLGC:

Gross: +$0.90, net -$3.04

March info: Lost -$26.55, -0.90%, 5 winners out of 13 trades, 0.78 profit factor (blah)
Quater info: Lost -$125.81, -4.0%, 13 winners of 35 trades, 0.62 profit factor (ugly, thanks to Feb.)

I like that it will be new month and new quarter starting tomorrow...

Masterjaz

Hard Market...

2008-03-25T14:36:00.000-07:00

Not much to say today, quasi-system trade, good mechanics, just not a winner. Also got a good fill, so the loss was tempered.

QID:

Gross: -$8.10, net -$11.14

Masterjaz out

Fly out

2008-03-24T14:15:00.000-07:00

Chalk up another loss, but this trade was executed with perfect objectivity and mechanical order entry. I'll take it. It is always hard to trade reversals in a strongly trending market, and today was no different. Still perfecting the craft, nonetheless.

GAIA:

Gross: -$17.95, net -$20.99 (note, I sold the first 85 shrs @ $17.11, not $17.10 as reported on the chart)

As an aside, I did find two great shorts (ZINC and UAUA). If and when I get setup to trade with a prop firm (along with the ability to short), I'll be looking for both setups. Today was a good example of when shorting is preferred over going long.

For now,
Masterjaz out

One more QID shot...

2008-03-20T15:57:00.001-07:00

And another loss. Maybe I should just give up on the QID. As soon as I do, it will print a perfect setup and pop, I know it. Oh well.

QID:

Gross: -$3.25, net -$6.29

Quick commentary: I am fully aware of my chicken sh!t ways of taking partial profits early and often, yet letting losers go full position to stop loss. So today, I decided to take 1/2 the position off after the stock declined half way to my stop. Although...I did wait for it to go past and then return (bad...). I will continue this trend until I have sufficient data/observations on how stocks behave (aka, how many go 1/2 way to stop loss, how many of those stop out, etc.). More criteria later. Nonetheless, I was able to save a little bit of cash and provide further patience and objectivity using this slight tweak to my system.

Weekend numbers: $2971.85, up +$33.68 or +1.15%, 1 of 3 trades winner, 2.04 profit factor

A good week and I am excited to go on to next week. Damn 3-day weekends!

Masterjaz out

In retrospect...

2008-03-19T18:52:00.000-07:00

Wow, just left a comment over on Evolutions blog directed at Swift Trader and noticed I blew that QID trade. Sure I got in a little early as the stock popped into the close of the 10min hammer, but that hammer's high was never taken out. I should have bailed immediately as it is not a valid signal. I hope that is clear. My system requires the prior bar's high to be taken out before entering, aka, place my stop limit order 1c above the current bar's high, then when the next 10min period begins, if the stop is hit, then the high was taken out, the move confirmed, and I'm in.

I cannot believe I just now noticed this. Still learning. Thanks to Evo and Swift for making me review my trade...

Masterjaz out

And a Strike Out...

2008-03-18T14:42:00.000-07:00

Always seem to follow a solid winner with a solid loser. Good trade, just did not work...

QID:

Gross: -$24.20, net -$26.04

I think I posted awhile back about trying to trade 'the market', hmm, should I listen to my own advice?

Masterjaz out

TRIPLE (a first)...

2008-03-17T13:04:00.000-07:00

Big trade today in LEH. Knew it was going to take balls and I could have been killed, but it patterned so nicely I had too. Chart does not do it justice as the stock was running into the close of the 10min bar. Luckily, I placed my stop limit 1min before and it was filled 17s before the new bar printed and LEH was rocking.

LEH:

Gross: +$70.25, net +$66.21 (biggest trade ever)

For now,
Masterjaz out

Screwed...

2008-03-14T07:17:00.000-07:00

Thursday was one for the books. Took a non-system trade, first ever, and lost. More commentary to follow after the chart+numbers.

ASPM:

Gross: -$8.55, net -$14.59

Commentary: A lot lead up to taking this trade. First, I was on Wallstreak and saw monster numbers being posted. Subconciously, I think this pushed me to trade as I wanted to be part of the action--but I was not getting any setups and the market was trending and no reversals were printing. I see a couple setups form in CRNT and PGNX, but they never hit my entered stop limits--so I am frustrated that a couple good setups did not work. Then I see ASPM tanking, and tanking hard. So I am ready to play, but note it is nearing the close. ASPM prints a monster red candle, but has partly retraced. There is no way I'll get a signal on the 10min, so I switch to 5min, find a nice entry and place my stop limit. Stock blows by the limit, never getting filled. So now I've watched %-sized gains be missed. I decided then to go back to my old system and place a market order at the end of the current 5min bar. All is decent. Stock pops a few cents, still below my 1% target, so I hold. It begins to reverse. Logic kicks in and I say, 'get the f out, now' and do. Small loss, but a non-system trade is a big no-no.

In the end, I am not upset about taking the trade, had I held, it would have worked. In the end, it is about not following my system, and more importantly, the OPPORTUNITY COST of using my last trade of the week. So I am left in the red for the week, and have all weekend to review.

That's my rant, that's the story, so next week, it is back to the system.

Weekend numbers: $2938.17, down -$16.72 or -0.57%, 1 winner out of 3, profit factor of 0.27

'Til next week,
Masterjaz out

Single...

2008-03-11T13:29:00.000-07:00

Was not planning on trading today, but a heads-up on Wallstreak got me interested. HUM was getting murdered, so I decided to take a shot.

HUM:

Gross: +$10.25, net +$6.20

Not a huge winner and it could've been larger, but I am just working on the system. Someday I may have the balls to make serious coin.

HANS...

2008-03-10T12:59:00.001-07:00

Nothing much to say, hard market to trade. Good opportunity, but no pop.

HANS:

Gross: -$6.30, net -$8.33

We'll see what happens next,
Masterjaz out

Single...forgot to post last week...

2008-03-10T10:46:00.000-07:00

I did not post my final trade last week nor the weekend numbers. Here they are...

PCU:

Gross: +$4.20, net +$1.16

For the week: $2956.72, up +$4.28 or +0.14%, 2 of 3 trades winners, profit factor of 1.27.

Until the next trade,
Masterjaz out

Double

2008-03-04T13:35:00.000-08:00

Anyone else sick of f'n ABK, MBI, TMA news. Just fix the f'ers and let's get back to 'normal'. I just have to make sure to be out of trades in the late afternoon when the BS hits the wires.

CAVM:

Gross: +$23.06, net +$19.16

For now,
Masterjaz out

Strike out...

2008-03-03T13:14:00.000-08:00

Some things never change. Nearly caught the late day rebound but missed. The more I think about it, the more I need to stop trading my pattern day trader limited retirement account and get an account with leverage and, more importantly, and the ability to trade more than 3 round-trips per week.

ARD:

Gross: -$14.00, net -$16.04

For now,
Masterjaz out

New system trading (ground out)...

2008-02-28T16:50:00.000-08:00

Started trading my new system today with some success. Being a chicken cost some change, but I'm happy to be back in the game. My string of losers keeps growing and it looks like February will suck butt, but I'm still smiling.

ASCA:

Here is what the stock did after I sold...

Gross: -$1.05, net -$4.54

I'll post weekend and February numbers later and then drink myself into a stuper.

Masterjaz out

Another Strike Out...

2008-02-25T15:10:00.000-08:00

Getting painful out here...

BPHX:

Gross: -$32.20, net -$38.04

The slide continues. Not giving up on it yet, although I am looking to tweak the system a bit. I think I've noticed something, but my non-readers will have to wait (yes, you that just look at the pretty charts).

Masterjaz out

Weekend Review...

2008-02-24T17:48:00.001-08:00

It's not been a great week, but it is part of the game...

Weekend numbers: $3009.46, down -$34.11 or -1.14%

Basically, I think my previous success lead to taking unnecessary risks and poor setups. The benefit is I have realized it early and I stalked a beautiful candidate on Friday, but did not pull the trigger. I literally thought "if I was up and running with a prop firm, I'd take this in a heartbeat". Of course the stock ran 10% and was up 20 something bars before a new low was made.
Let's see what tomorrow brings,
Masterjaz out

Official drawdown...

2008-02-21T14:40:00.000-08:00

For the first time since I started in Dec. my account has gone red. I am just not trading as I should be--too quick to trade, impatient, and jumping the gun without stalking the best setups. Also not managing my trades with any consistency...

BPFH:

Gross: -$14.23, net -$17.78

Tomorrow, maybe, maybe not,
Masterjaz out

Fly Out, good use of scaling...

2008-02-19T15:33:00.000-08:00

SMSI: first trade in which I scaled out even when losing, saved some pennies, although I am still very subjective...

Gross: -$8.25, net -$16.33 (Fly out)

A losing streak?, I will know in a couple more trades,
Masterjaz out

Foul tip right in the nuts--no cup

2008-02-14T14:57:00.000-08:00

While not an official blow-up, I did suffer a monster loss today. Partially due to monster bid/ask spreads and partially to not scaling out, I got killed and gave up much of my overall gains.

PPO:

Gross: -$48.32, net -$50.36

Today deserves some commentary: The problem with today's trade is that I worked so hard to gain a respectable 2-3% over the last few weeks and blew it in one shot. I partial out of winning trades at the first sign of trouble and at +1%, yet I let these losers drop with the steadfast notion they will eventually pop, and a day like today was inevitable. So, in the future I will have to start scaling out of losers, probably starting at -0.5%. Also, I do not like the way an NYSE stock trades. Lots of bid/ask movement with little buying/selling. Made it hard to sell at my stop loss without proof of buying/selling interest at that level. Call it a fakeout. In the end, I'll survive and learn from days like today.

For now,
Masterjaz out

Single...

2008-02-13T15:38:00.000-08:00

Nice to end losing streak, even if it was just two trades.

DAKT:

Gross: +$21.26; net +$18.58

Maybe a trade tomorrow as well,
Masterjaz out

Fly or Ground Out...

2008-02-11T14:15:00.001-08:00

Have not decided which out I deserve, but I'm out either way. Mental note: NEVER TRADE THE MARKET--too slow, too many variables, just sucks.

QID:

Gross: -$9.60, net -$11.64

Try again later,
Masterjaz out

Ground out

2008-02-07T13:24:00.000-08:00

Simple trade today that ultimately failed. Problems with order execution resulted in a loser, when it should've been a scratch...

UFPI:

As you can see all the relevant and important information is on the image. No need to elaborate.

Gross: -$4.20, net -$7.24

Done for the week with good results--

$3086.99, up +$10.72 or 0.35%, 2 winners out of 3 (should be 3/3), profit factor of 2.48

More next week,
Masterjaz out

Double (before account for commish)...

2008-02-05T15:44:00.000-08:00

ETFC (watching a ton of possible setups but nothing looked good--typical of a grinding/trending day)

Bought 12:00pm
500 shares @ $4.50

exit: (practicing adding liquidity in preparation for prop trading...)
sold 100 shrs @ $4.54 (usual 1%, although I entered the limit at $4.55, so a slightly subjective...)
sold 250 shrs @ $4.55 (limit order practice, ECN rebate)
sold 150 shrs @ $4.56 (had to attend seminar, happy to lock profit)

Commentary: As alluded to, I am contemplating joining a prop firm in order to get over pattern day trader and cash account issues. This three trades a week is a blessing and a curse in that I must focus only on the best setups yet I can only take the three trades and opportunity costs are huge. Many firms have partial to full ECN rebate pass-through such that my usual method of market orders will cost me more if routed through the various ECNs. An alternative is to set my 1% partial scale out with a limit order, thereby adding liquidity and providing a rebate. I was testing that today and was successful. More will follow, I am sure.

Gross P/L: +$25.50 gross, +$14.95 net

We'll see what tomorrow brings,
Masterjaz out

Single, huge commish...

2008-02-04T13:28:00.000-08:00

RNWK:

Bought 10:50am doji,
300 shares @ $6.20

exit:
sold 200 shrs @ $6.2301 (before the usual 1%, just did not see the stock popping and wanted to lock in profit-more importantly an amount that would cover the commision)
sold 100 shrs @ $6.2305 (markets hitting lows of the day, wanted/needed out)

Commentary: A slow moving stock, huge size on bid and ask, and commissions. In reality, the % paid for commission is fixed based on the number of partials I do, so I would have been fine trading 400 shares. Still sucks. Also, stock did pop after nearly testing my entry, sold well before. Again, never hurts to lock in a profit, but I need to learn how to hold.

Gross P/L: +$9.07 gross, +$3.02 net

We'll see what tomorrow brings,
Masterjaz out

Single, but could've been huge...

2008-01-31T15:17:00.000-08:00

EMKR:

Bought 12:50am doji,
200 shares @ $13.47,

exit:
sold 100 shrs @ $13.551 (before the usual 1%, just did not see the stock popping and wanted to lock in profit-more importantly an amount that would cover the commision)
sold 100 shrs @ $13.4625 (at breakeven minus some slippage)

Commentary: Stock went on to explode after I sold at the bottom of the candle. No worries, as I was following my system. It is one of those trades that makes one want to change the system, perfect it and what not, but that will only lead to problems down the road. Just stick to your plan.

Gross P/L: +$7.35 gross, +$3.30 net

Weekend numbers: $3075.10, down -$3.98 or -0.13%, 2 winners in 3 trades, profit factor of 0.7. All in all, a decent week.

We'll see what tomorrow brings,
Masterjaz out

Strike out...

2008-01-29T17:07:00.000-08:00

Been a while since I had a loser, today was the day. A strike-out true and true...

SEPR:

Bought 10:50am doji,
100 shares @ $28.949,

exit:
sold 100 shrs @ $28.831 (slight slippage as the true stop loss of $28.85 was quickly passed to the downside)

Commentary: Doji was not great, no real washout of weak hands, did trade with the market reversal so slight positive there.

Gross P/L: -$11.80 gross, -$13.85 net

We'll see what tomorrow brings,
Masterjaz out

A single to start the week...

2008-01-28T13:19:00.000-08:00

MATR: (interesting range for a buy-out candidate, likely because of the cash-stock mix, I actually don't care, just glad to make some coin...)

Bought 9:20am doji,
70 shares @ $32.34,
(once again, no target set, stop loss is always 1c below the doji low, and moves as new candle highs are made compared to preceding stick)
exit:
sold 40 shrs @ $32.46 (held through a dip but a huge seller did not allow ask to go above 32.50)
sold 30 shrs @ $32.50 (again, iceberg sell around 32.50, got out with a profit, stock did not move after the sell)

Commentary: Good trade. Maybe would not have traded given it was a take over name

Gross P/L: +$9.60, net +$6.55

We'll see what tomorrow brings,
Masterjaz out

A double...

2008-01-24T14:55:00.000-08:00

FSLR:

Bought 9:10am doji (close to it, darn fast moving stock),
15 shares @ $153.14,
(did not plan a typical target, stop loss--horrible, but it was too fast to look away. Stop would have been ~$5 away, way down there...)
exit:
sold 5 shrs @ $154.87 (following rules of locking in 1%)
sold 5 shrs @ $156.00 (just wanted to lock in profit, nearly $3 a share...)
sold 5 shrs @ $157.19 (a reasonable target based on price by volume, shaky market)

Commentary: The fast movement of stock prevented me from comfortably and objectively working on targets and stop losses. Had the stock tanked and the stop loss (the doji's low) been hit, I would be crying, so I am going to look at how stocks trade if they don't initially pop after the doji. My guess is the first line of support would be the low of the candle preceding the doji. Also, if the stock is not trading at the lows of the day, there may be support. Something to watch... Otherwise, a good trade, taking profits and almost a triple (1.88%).

Gross P/L: +$43.20, net +$39.15

We'll see what tomorrow brings,
Masterjaz out

Another Single...

2008-01-18T10:26:00.000-08:00

I've started going with baseball descriptions of my trades and today is a single (0 to 1% winner).

CHINA (2):

Bought 10:10am doji (close to it, was within 1c of forming a perfect 'T'),
500 shares @ $4.00,
target $4.10,
stop loss $3.97,
risk/reward 3.33,
exit:
sold 200 shrs @ $4.0405 (following rules of locking in 1%)
sold 100 shrs @ $4.0205 (half the distance back and looking weak, subjective nonetheless)
sold 100 shrs @ $4.0005 (breakeven point)

Commentary: Commish on these trades are the killer. Check out difference between gross and net. No way to avoid such issues using my current 'per share' pricing scheme. If and when my balance supports it, I can go to a flat rate system. Otherwise a good trade, subjective on the second sell, but for now, I am very happy locking in profits.

Gross P/L: +$12.25, net +$2.18

Weekend numbers: $3039.94, +$8.30, +0.27%, 2 out of 3 winners, profit factor of 1.56 (all good numbers and I am pleased).

We'll see what next week brings,
Masterjaz out

Chicken sh!t...

2008-01-15T12:41:00.000-08:00

Interesting day at my trading desk (also known as my laptop sitting on my desk at work...). Two trades, one that failed and one that was a winner, but I left a lot of money on the table. Nonetheless, I felt the trades were handled well, not 100% objectively, but only because I don't have a concrete system for how to deal with big WINNERS. Oh the humanity...

DEPO:

Bought 8:20am doji,
300 shares @ $3.4895,
target $3.65,
stop loss $3.40,
risk/reward 1.79 (huge target though...),
exit: sold full position @ $3.4602

Commentary: Nothing wrong with this trade except the position sizing+commision issue. I still have not worked out how I wish to play with low price, high share count trades. It seems I am losing tons on the commish...

Gross P/L: -$8.78, net -$14.84

Now comes the fun trade in SCOR:

Bought 12:00pm doji,
80 shares @ $23.86,
target $24.58,
stop loss $23.12,
risk/reward 0.97 (what's a target anyways...?),
exit:
sold 1/2 position after a ~1% pop, 40 shrs @ $24.00 (caught major slippage, still locked profit)
sold 1/4 position, 20 shrs, @ $24.11
sold 1/8 position, 10 shrs @ $24.41
sold 1/8 position, 10 shrs @ $24.85

Commentary: Holy crap, what a trade. It had my heart beating the whole time. In short, I chickened out and left over 60% of my profits by scaling out. On the other hand, I was more than happy to take a profit on this quick moving, highly volatile stock.

Gross P/L: $26.00, net $20.95

So, it was a profitable day, could've been better, but I probably would trade each one the same way. That is until I find an objective method for scaling out of winners. Ultimately SCOR ran to $25.41 (top of trade) and I would've exitted at $24.83. I would have loved $1/shr, but I likely would have a heart attack in the process. It is what it is. I will look into scaling out of positions using % increments (or something...).

Always another day,
Masterjaz out

End of the week...

2008-01-11T14:25:00.000-08:00

Wow, there were absolutely zero setups today. Nothing to do but sit on my hands. Have to wait until Monday to get some action. Although...I did try to place a trade towards the end of the day, it did not enter (don't know why), but it would have been a loss (~ -$10). Sometimes it is better to be lucky...

As for my end of the week stats:

Weekend Balance: $3030.77, -$9.80 or -0.32%

Took 2 trades, was 1 for 2, profit factor 0.35.

Have a good weekend,
Masterjaz out

Trading my plan, and it is working...

2008-01-10T17:31:00.000-08:00

It is always nice when things go as expected. Not a big winner, but a nearly 100% objective trade. I will take it (over and over again).

SYNA:
Bought 8:50am doji,
60 shares @ $31.89,
target $32.70,
stop loss $31.06,
risk/reward 1.00 (usually low for long hammers such as these),
exit:
sold 1/2 position after a 1% pop, 30 shrs @ $32.22
sold 1/2 position, 30 shrs, @ $31.84 (was attempting to close at breakeven, $31.89), but caught some slippage.

Commentary: Perfectly played trade. Still working on my exit strategy, although I am pleased with today's technique. Had I used my new low, I would have exited at $31.74 and given up some gains. I am more than happy taking these 'singles' all week long. On the other hand, the stock did continue after making that low. Oh well.

Gross P/L: $8.40, net $5.37

So, I'll take the day and I have a trade left for tomorrow or Monday.

Always another trade,
Masterjaz out

And the bottom drops out...

2008-01-08T13:51:00.000-08:00

Wild trading day...

JADE:
Bought 9:30am doji,
400 shares @ $4.0095,
target $4.15,
stop loss $3.90,
risk/reward 1.28 (usually low for dojis such as these),
complex exit--
Sold 200 shrs @ $4.0515
Sold 200 shrs @ $3.932

Commentary: Good trade to start, excellent entry, good objectivity, sold 1/2 position at +1% gain. Then the bottom just fell out and the stock tanked. I should have exited the second 1/2 position at $4.00 (near breakeven), but watched the stock tank. Finally entered my market sell and got out at that bar's bottom (of course). Lesson here 1) Using Quotetracker, always enter next move (usually sell) after a move is made because it 'zeros' out the ticker/shares after the transaction. Had I had 200 shares entered, I could've sold earlier. 2) Don't think, just react, especially as targets/stops are hit. I only use mental values, so I must have lighening fast reflexes. I probably could have exited at $3.97 or so, had I been prepared. That would've cut my loss in half. Nonetheless, I was very pleased with the entry and first sell and still consider the trade decent. 3) Also, I need to think about the effect of commissions, this trade was 8 bucks using the same capital base, when a higher priced stock would've been ~2 or 3 bucks...

Gross P/L: -$7.10, net -$15.16

As always, there is always tomorrow (or Thursday for me due to pattern day trader...), Masterjaz out

Pop and Drop (the ills of under-capitalization)...

2008-01-03T13:37:00.000-08:00

Two trades today, both suffering from the restraints of under-capitalization). Both trades were very good entries, good starts, but immediate retracements after the next bar or two. Had I been able to partial out, I would have been profitable on the day. No worries, still learning and tweaking my method and the results are still small losses.

VRTX:
Bought 9:00am doji/hammer (not perfect),
80 shares @ $20.93,
target $21.50,
stop loss $ 20.70,
risk/reward 2.5 (usually low for long hammers such as these),
exit $20.90 (Below my updated stop loss of $20.95 due to my playing with limit orders. Wanted to split bid/ask, freaked, cleared entry, had to reenter ticker/shares, and loss 5c/share in the process)

Gross P/L: -$2.40, net -$4.43

BBBY:
Bought 11:20am doji/hammer (perfect),
30 shares @ $27.38,
target $27.60,
stop loss $ 27.27,
risk/reward 2.00,
exit $27.36 (right in line with rules)

Gross P/L: -$0.60, net -$2.62

So, all told today I was very consistent with my entries, a little iffy on my first exit, and stuck to my system. The stocks just did not want to follow through and grind higher over multiple bars. I want to improve my capital base or my method to allow partialing out of positions if they go profitable after entry. I could have made 0.5% of my balance today, if I had this in place. Instead I paid a little tuition and survive to see another day. I do see an influx of cash to this account in the near future.

There is always tomorrow,
Masterjaz out

Friday Trade

2007-12-28T12:35:00.000-08:00

Another trade today, decent, but not perfect. But, as always, I'll take a profit and learn something along the way.

CALM:

Bought 11:50am doji/hammer (not perfect),
50 shares @ $28.02,
target $28.50,
stop loss $ 27.55,
risk/reward 1.02 (usually low for long hammers such as these),
exit $28.04 (subjective sell, had to go as the wife was starving, she may be good luck as I'm getting out at good prices when she is waiting/begging/pleating for me to finish..)

All in all, a decent trade. Showed patience early on and then quickly exitted when I needed to go. The stock was looking 'heavy' when I sold, but that is not sufficient objective evidence for a sell. Nonetheless, I'll take the profit and move on.

Gross P/L: $19.00 net $16.98

As for my weekly stats, it was a great after-the-holidays market, at least for me.

Weekend balance: $3047.67, up +$31.36, +1.04%

Always another trade,
Masterjaz out

Thursday Trade

2007-12-27T15:07:00.000-08:00

Almost a week since my last trade, but it does not mean I've been ignoring the markets, just waiting for an opportunity. Found one today.

CHINA:

Bought 10:40am doji/hammer (not perfect),
370 shares @ $4.0595,
target $4.12,
stop loss $ 4.02,
risk/reward 1.5,
complex exit--
sold 100 shares @ $4.0905 (after move started, stagnated early)
sold 100 shares @ $4.1105 (at target)
sold 170 shares @ $4.1405 (subjective sell after my wife nearly broke my computer because I placed the trade a few minutes before we were supposed to go shopping!).

In reality, the final sell would have been at $4.10 (a new trade low after run and consolidation).

Lucky trade, I did like the 'waterfall' selloff into the doji (not perfect, but slight rise is due to the thinnly traded nature of the stock). I also watched the market and saw it was putting in a short term reversal when I bought and should've provided support for the trade.

Gross P/L: $21.97, net $14.38

I'll be watching the markets tomorrow am and see how the week closes and will post my weekend balance at the close.

Always another trade,
Masterjaz out

Friday Trade

2007-12-21T15:24:00.000-08:00

Took a shot on Friday, in the afternoon after the morning was boring, at least with respect to my desired setups. So here we go:

GILD:

Bought 12:10pm doji (not perfect),
20 shares @ $46.04,
target $46.20,
stop loss $ 45.98,
risk/reward 2.67,
exited at $46.00 after revised stop loss (previous candle low if it makes a new trade high)

Gross P/L: -$0.80, net -$2.82

I would probably take this trade again, not a long enough lower wick and not a high moving stock.

Weekend balance: $3016.31, up +$7.76, +0.26%

Short week next week, we'll see what happens, have 2 trades available thru Thursday (may need to adjust for 'buisness' days).

Always another day,
Masterjaz out

Beauty...

2007-12-17T12:38:00.001-08:00

My first winning trade, *smile*, and it was a wonderful setup with wonderful procedural work by yours truely.

ARTC:

Bought 9:50am doji (beautifully formed after long decline)
20 shares @ $48.19 (newbie mistake here, large spread, doji at $48.10, 9c slippage),
target $48.90,
stop loss $47.87,
Reward/Risk of 2.22,
Exited at $48.82 after current candle took out previous candle's low (after that candle hit a new trade high, make sense?).

Gross P/L: +$12.60, net +$10.58

Good stuff. Used up my 3 pattern day trades for the week and won't trade again until Friday. In the meantime, I'll watch the markets, miss a bunch of fantastic setups, and curse my account balance...or maybe I'll watch and learn!

Always another day,
Masterjaz out

Welcome

2007-12-14T18:28:00.000-08:00

I think this is blog number 3, but each offers something new, and an opportunity for me to fall behind in posting and lose all my non-existent readers. Anyways, this blog will chronical in great, gory detail my foray into day trading. Profit, losses, charts, humility, and maybe a monster bank roll will greet me and you day in and day out.

So, the setup. I have a whopping 3k available for trading. It is in an IRA account with MB Trading. Yes, I'm trading retirement money, I'm crazy, but I'm young. 3k won't make or break me, so here we go. I am going to plot my weekly account balance coupled with details concerning each trade I make. It won't be too many trades as pattern day trading rules are in full effect.

Trading system, weakly defined. I am attempting to trade intraday reversals signaled by doji, hammers, and bullish engulfings using 10min candles.

Trades for today, 2:

LEAP:
Bought at 9am engulfing.
30 shares entered at $36.50,
targeting $37.00,
with a weakly defined stop-loss at $36.15.
Gives a reward/risk of 1.43 (weak at best).
Exited at $36.47 after the stock chopped for 30min or so. Did not wait for stop loss, but stock just missed my target by 2c and reversed hard. Ouch.
Gross P/L: -$0.90, net -$2.90.

CSUN: Poor trade taken while still working LEAP.
Bought 9:20am engulfing.
90 shares entered at $11.02,
target $11.30,
stop-loss at $10.85.
R/R of 1.65.
Exited at $10.90 after I made super newbie mistake of entering $10.85 limit sell order instead of stop market order. Dope, but it did save me 5c/shr or $4.50.
Gross P/L: -$10.80, net -$12.80.

So, for the day, 0 of 2, for a total net loss of -$15.70 or roughly -0.52%. Not worried about the losses, this is a learning experience. I'll sit on my hands and watch the markets for a few days and allow my trades to expire (wrt pattern day trader rules), and will start trading again on Thursday or Friday.

Weekend balance: $3008.59, down -$15.70, -0.52%

Always another day,
Masterjaz out