Monday, October 12, 2009

Stock Trades going Into the Red on the 147th Trade

In my Dismal attempt to time the top of the market, I have taken my stock trades to negative levels.

After 147 trades, I have basically taken my account to -$209.60.

I'm obviously doing something wrong if out of the last 25 trades, I only have 3 profitable ones.

Here is my graph for progression on my trades thus far, and now that I've been humbled again, I will work on my charting, and risk management over the next day, before trading again. The chart was trending nicely, but I think hubris got the best of me, after timing the MQG trade perfectly.

Some key mistakes I've been making
1/ Over-trading
2/ Getting stopped out in first 10 minutes of trading, due to US lead, only to see position turn back into the trading range defined for the trade - need to review where I'm putting my stops - if I continue to set stops at a structural level or read the order flow before deciding to take stops in positions.