Since the 10th of May, I haven't been able to trade on account of my violation of the PDT rule in the speed trader account I was using at the time.
As a result I was forced to open a new account and decided to go with MB Trading as their platform especially charting and drawing tools seemed more like what I wanted plus their flat rate commission is much lower than Speedtrader's!
So after 2 weeks of waiting, my account with MB Trading is finally set up and funded and I can continue where I left off. Which was down roughly 7% for the month of April and roughly down 8% since inception in late May.
I used the down time to continue practising with my trading system and to review the trades I made. I've concluded that my poor performance thus far has a bit to do with my selections but even more to with my lack of patience and discipline!
I've been guilty of over trading a bit and not being choosy enough about the stocks that I put on my buy list daily. I need to be very selective about my trades as I am limited to making less than 3 day trades per week. That is if a stock triggers an entry and stops me out the same day: I can only do this 3 times in a week.
One of my biggest weaknesses has and continues to be letting winning trades run. As soon as a winner starts going through a natural normal reaction, I get antsy and want to sell even though absolutely nothing is wrong with the position.
A second major weakness I need to work on is getting frustrated and selling out of trades that are working just because I got stopped out of 1 or 2 that did not work.
All in all I'm not letting my winners run and this is causing me to have a negative expectancy!
I will work on these weaknesses by being more selective about the technical patterns I allow to enter my buy list. I'm demanding the best quality only!
Secondly I'm thoroughly researching the fundamentals of the company as well as its story and possible catalysts that could push it higher. So that once I decide I want in on a stock; I'll have strong conviction to hold it through its normal reactions.
Another rule I'm going to implement is to not exit a position unless it hits either my hard stop pre-determined and placed before the open of trading or hits a pre-determined profit target during the session.
I'm going to try my best to stick to these rules and and I'm confident my performance will turn around.
I've already posted the stocks I'll be looking at for tomorrows session in previous posts. However, my favourites are $XRM, $PCRX and $OSH. We are still in an up trend based on my marketing timing indicators and so I am still long biased; although I am some what weary of further selling this week. Should the markets continue selling off causing my timing indicators to turn bearish; I will remain in cash and look to put a few shorts on. One stock I'm eyeing is $SBGI.
**On a side note; I've been play around with the MBT Desktop Pro platform for the past few days now and I've got to say I'm very impressed! With the exception of perhaps Light Speed; I think its the best trading platform I've ever used. Once the executions are good; it will be perfect. I can see my self trading with this broker for a very long time!
Looking forward to a profitable and fun week...all the best with your trading!