Tuesday Wrap-Up - One Good Trade... or two.


     The market was pretty choppy today and unfortunately for me, my COV overnight couldn't hold up. I got out of it when my reason for getting in (based on relative strength and the strong possibility of higher prices from its flag) no longer stood true. I took a $500+ loss which I was perfectly fine with. That trade looked great and offered an excellent risk/reward opportunity. My job is to simply take the trade when it makes sense and manage risk from there. No need to make trading any more complicated than it has to be. The broader market wasn't much to talk about either as we formed a doji today. For now, it seems like the selling pressure has stopped and we may get a bounce off this 50 day Moving Average in the upcoming days. The rest of the week will also give more companies the chance to report their earnings.


     Today, I netted an impressive $1200 despite the tough Open. I traded the most volume in my winning trades which is what I want to see. TYC could've been a great opportunity as well but I was shaken out. Can't complain. I rode INVE and CYH like a champ. While I was able to make a nice amount, I know that I will need to study these charts and ask myself how I could've traded these setups better. Here are the charts with  my entries/exits.





     Finally, let's wrap up my review with these questions.
  1. Did I trade the right stocks? Yes, I was in the most active stocks that presented excellent risk/reward opportunities.
  2. How important were the levels that I traded? They were good levels that gave me a chance to risk very little to be a part of the action.
  3. Did each of my trades present a good risk/reward opportunity? Yes, but I need to be able to get into trades with a full tier of risk ($200) and find valuable places to add. I lost focus and sometimes got in too small. Regardless, I traded my plan very well.
  4. What was my best and worst trade(s) of the day? My best trade of the day was CYH because I located an important level, found places to add and scale out, and used the tape for additional information.
  5. How well did I manage my risk overall today? I managed it very well especially in TIBX where my original risk was almost $300. Instead I lost only half of that by scaling out my loser when it wasn't working the way I wanted it to.
  6. Did I remain composed and objective during the intraday? Yes, I remained patient for the best opportunities.
  7. Was my trading volume appropriate for today’s market action? It was very appropriate as I waited until the most In-Play stocks gave me the opportunities to enter.
  8. What should my P&L be today and why? $2000, there were easy places to add in which I didn't take advantage of. The market gives you easy trades once in a while. Take it!
  9. How could I improve for tomorrow? Remain patient, trade around important levels, and don't waste time with garbage stocks. Once I'm in an In-Play stock, think about how I can size up while still managing risk effectively.





Tuesday, April 12, 2011 // // 0 comments //

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