Daytrading - Lesson

I learned a hard lesson today. As I've switched over to daytrading, this has faired much better typically than swing trading in the volatile markets we've experienced. But, there will be times I hold positions overnight. It's a combination of what I'm seeing in the charts, market, and my gut instinct. Most of the time I am right and that's okay.

That's not the lesson learned here. As a daytrader and a chartist, my charts are very important and no one else can read my charts and trade just like the way I like to trade. It's an art. The past few trades I've had my broker execute for me just have been very costly or left me in a position that is horrible. Being this is an art, that cannot be conveyed and he wants a hard number.

Legally I can see why he wants a hard number. The lesson learned here is to just close out my trades or to electronically put in my own stops myself so I can take the emotions of using my broker. Sometimes it's just best to take the profits off the table just like that and if there is more, oh well. Profits are profits. Costs are costs. No matter how good or poor a trade is, how profitable or how costing, there is something to be learned from EVERY trade.

I really like being around other good traders who are profitable, yet are very humble. Periodically I come around profitable and very cocky type individuals. It's fine for them, but there is something about the smugness attitude that sets me off, and hurts my trading.

Lesson 1: When daytrading, do not entrust to others to execute your trades period.

Lesson 2: Trade what you see on the charts regardless of what is happening. They do not lie. Yes, news and earnings are great, but what's happening on the charts? Keep your opinion out of the trades.

Lesson 3: Do not HOPE. Hope rhymes with Dope!

Lesson 4: Stay away from smug traders who think they are all that.

Lesson 5: Stop thinking I can make a quick buck in short period of time. Patiently and calmly trading gets better results.

Lesson 6: FOCUS! If you have a lot of distractions, eliminate them or do not trade.

These are my lessons for today. I hope they serve you well.

What's Happening

Okay, there is a lot to write about. This week I have traded all 3 days. And I continue my $200 BIDU account to see where it is at.

I will attempt over the weekend to give a summary of each of the trades. Note, this is just practice, but I figure most people can relate to $200 and if you know what you're doing, you can eventually grow this very well.

This account I started on 2/4/08 with $200. On 2/13/08 it now is at $2,463.37, which is over 1100% return, which is in 8 trading days. A couple trades have gone against me with costs and at no time did I ever use the whole trading account's capital in any one trade. Some of the trades I did in my real funded account, just different strike prices. My goal is to see where I can take this account in 1 month. I currently do have 1 position that is being held overnight for earnings on purpose.

I am physically feeling better, but still somewhat tired and this nagging cough. My daughter is feeling well. Sean, my 4 yr old son, is feverish again and sick again now for the 3rd week in a row. Please pray for his complete full recovery. He went to bed very early this evening. Poor little guy.

This is expiration Friday, so I plan on trading, though, both my kids are home from school as there is no school for either on Friday or Monday. I will greatly need to be very focused so as to not incur any costs from distractions.

Sick

I'm thinking what I have is the flu and it's hit me a lot harder than I originally thought. My kids were both sick and home for part of the week last week. Sean got a 2nd bout of it on Monday and was home Monday & Tuesday. By Tuesday, I wasn't feeling so great. Hannalee only has the cough. Wednesday I'm feeling really bad, but had some pressing financial issues that I had to deal with so couldn't get any rest.

Thursday I pretty much slept. Friday morning I'm sleeping through the market.

The only thing I've done this week in terms of trading is listen to a couple trading classes and do practice trades on BIDU.

A lesson I learned in late 2006 is do NOT trade when sick. It's a sure fire way to have costs. So, until I"m reasonably well, I'm not going to trade, as daytrading requires good concentration. When you're coughing, feverish, snotting all over the place, I'm just not adept to trade.

I decided to see with BIDU what I could do with $200 starting the beginning of the week. So far, I've had 5 trades: 4 profitable and 1 costing. As of right now, it's around $1150ish. Can't remember the exact amount. Pretty good, don't you think? I just want to see in a month what that $200 can be. This is just practice trading on BIDU with a very small amount of money.
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BIDU Daytrading

I know I've slacked on posting lately. The only thing I've been trading is BIDU and daytrading it. It's a great stock to daytrade, with plenty of volume and price movement (intraday).

Life has been very busy. My kids have been sick, school projects, friends, parties, socials, all sorts of things that have kept me more than busy. Yes, excuses. Sorry. Just a challenge to keep all these things afloat and balanced. Something has to give.

BIDU daytrading has been good. There has been a lot to learn and every day I get to trade is a learning experience. I will attempt to share more learnings about my daytrading experiences, but it's late right now and tired. Maybe I'll have some time in between helping my daughter with her school project?

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