Thursday, July 29, 2010

I am now flat the markets...

DTG hit my target ($49.00) this morning and I sold it $49.355 for a total profit of about $333.50 after commissions. After I close each trade, I enter the symbol, trade type, position size, entry date, entry price, stop loss price, exit price, exit date and net profit/loss after commissions. At the end of every month I review my trades and post the metrics from above in a table to my blog. After I entered the details from my DTG trades I realized that a few of the losses from this month were avoidable and that my trades in ATHR in particular were very poor for two reasons.

With regards to the avoidable trades, I entered these before getting a confirmation and then was stopped out immediately the next day.

The ATHR trade was a low probability set up to begin with. To compound matters, I put on 2R or twice my standard per trade risk on a low probability set up with earnings set to come out in the same week. Very poor trade! I ended up losing over $250.00 on that trade alone. When I should have only been risking $50.00 - $75.00 at most on such a high risk set up.

I know I am not a perfect trader. I also know that I must strive towards to continuous improvement. The first step towards doing is this is keeping records of and reviewing your own trading.

I hope you are keeping records. I never saw improvements in my own trading until I wrote a trading plan and started keeping detailed records of trades manually and reviewing them regularly. If you do not do this now then it is not too late to start.

Good luck and good trading!

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