Another tough session especially if you were long through the Japan news, however a lot of good things to notice. First, I feel pretty good about the size I'm using. Currently, I'm giving each trade about $200 of risk. On big ideas (one that I'll mention later), I'm willing to risk $500+. Of course, I need to absolutely feel great about something like that. Today, I realized -$500. Currently holding $OCZ, with a combination trade idea in the Gold Miners ($NEM and $GDX).
Holding 1000sh overnight in $NEM at 58.025 with a target of 60. With all the accumulation at 58, I thought this was going to be a good time to make a big bet while news is still fresh and Gold Futures on highs. In addition, I doubled my bet with a play in $GDX, 700sh at 62.69. Didn't give me the finish I wanted but Yesterday's low held and right now it's just looking like a nice flag. Overall, I'm risking about $1k worse case scenario for a chance to make $3k within a 2 day period. This is a huge bet since if I'm wrong, my daily stop loss will get hit but this was something that I decided to do after speaking with management. I was okay with the risk and this is me pushing myself a bit out of my comfort zone, to come up with my own 'big' trading ideas and executing it. Taking a look at the general market, I see triangles and wedges getting ready to be broken, albeit in either direction. I'll bet that it keeps pushing higher since the market had a chance to push lower with the Japan news but didn't. We are currently below a sideways 5 day moving average, but a gap tomorrow can see some good price action. Check out this doji string in SPY.
Currently realized -$300 or so for the month. I feel like I'm doing a lot of the right things right, but also doing some of the wrong things too frequently. Discipline, patience, and a good trading plan will put me in the right place. It's been a long 15 months learning how to trade. I'm exhausted to be honest with you guys. I'm getting 3 hours of sleep each night and I've lost a lot of friends in the process. I'm not as active anymore in many of the other things but I completely understand this is part of the process. My risk? Another year or two of more sacrifices. My reward? The opportunity to do something positive with my life and the ability to help others. #havefaith.
P&L swing for the day. Do what you need to do, but don't quit.
Thursday, April 7, 2011
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