Trades: Fri, 8-Jan-2010

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Day: Friday
Date: 8-Jan-2010

# Trades Made = 1
# Profitable Trades = 0 (0%)
# Costing Trades = 1 (100%)

Max # Contracts Used = 1
Max Capital Used In 1 Trade = $500

Profits = $0.00
Costs = <$262.50>

Commissions = $3.99

Net = <$266.49> (-53.33% ROI)

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MONTHLY RUNNING STATS:

Total Trades = 13
# Profitable Trades = 10 (77% Profitable Trades)
# Costing Trades = 3 (23% Costing Trades)

Profits Total = $162.50 (kept 0% profits)
Costs Total = $312.50 (took 192.3% profits)
Commissions Total = $51.87 (took 31.9% profits)

Max Contracts Used = 1
Max Capital Used At One Time = $500

January Cumulative Net = <$201.67> (-40.3% ROI)

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Things I Did Well:
1. Got out of a costing trade that was going WAY against me.

2. Called my broker and the floor to help me with my trade, including verifying that I was in a trade.

3. Acted quickly to remedy the situation that I was in, which I was a bit uncertain initially. Once I knew what was happening, I took immediate action, as I didn't have time to assess further and if there was going to be further damage done.

4. Talked with my broker as to how to avoid the problem I had that cost me big this morning.

5. Talked with Genesis' Tech Support as to how to remedy the problem I had as well as any recourse I could take.

6. Though it was an emotional thing, I remained calm, cool, level-headed and listened to my broker, the floor, and Genesis Tech Support.

7. Stopped trading with real funds to figure out a solution to avoid the problem I had.

8. Worked with my broker for a solution and took his suggestions.

Learnings From Today:

Let me preface this by telling you about what happened. This morning just before 6:30 am MST, I was looking at the market, talking outloud, reading my trading strategies. My cursor was hovering over the price ladder in my Trade Navigator platform with my funded account opened.

I accidentally clicked on what I was possibly thinking about entering. That periodically happens and I would just click on the X to get me out of the order that was pending. Unfortunately this time, as I clicked on that X, which was only a few seconds later, if even that, my account said that it's unable to cancel the orders because I wasn't connected to my broker or the floor.

I attempted to cancel again and got the same message.

I attempted a third time to cancel and this time got a different message that it was unable to cancel orders because there were no orders to cancel. At this point, I'm panicking because I have no clue whether I'm connected to my broker or not. Everything that I knew on my Trade Navigator said I was connected -- Real Time was up and Green. I was able to see the price action on the ladder move. It looked like I was connected.

What I didn't know was to look at a couple other places, and even if I had, by the time I would've done so, it would've been too late and already past. See, for 37 seconds, the floor/broker disconnected me and then reconnected me, all without my knowledge until I went back to the log of all movements made by me to the second.

During that 37 seconds when I attempted to cancel the order that had already been sent to the floor and executed.

One of the things that I do before I trade is I look at the economic news reporting for the day. Rarely will I trade right before the news or right after, because of the volatility. This really depends upon what the news is, though. I knew today was some Unemployment reporting, so I wanted to check when that was.

Apparently that was at 6:30 am MST, and unfortunate for me, as I was already in a LONG position. I called the floor, as I didn't think my broker was in, and had him wait with me as I rebooted Trade Navigator. My position was going more against me as we spoke. He told me my broker was in, so I called him and he recommended not staying in a losing position that was quickly going against me.

So, I figure, cut my costs then. Of course, it rebounded not too long after that back to some level where I wouldn't have had to take THAT big of a loss, but I did. As I didn't know if it was going to go another 10 points against me or just another 1. It went another 2.25 pts against me from where I took my cost and then began coming back up. It didn't come back to where I got in until a little over 5 hours later.

Yes, this could've been just a commissions cost, but it wasn't.

Usually things do rebound if the news isn't terrible. Unemployment met what the market expected. Not terrible. Not great. We're basically back to when unemployment reported as of this writing at 3:25 pm EST.

Could I have waited and seen? Yes, but the thing was, I did not KNOW what the market will do and could only make a decision from what was happening and it was moving down fast. It dropped 8.5 pts in a matter of 12 minutes or less. It could drop another 6 pts and then I would have to recoup all that rather than just get out.

I could've gotten out about 2 pts earlier when I was talking with the floor, which that would've been the smarter thing to do, but I did not.

1. Have both my broker's platform as well as Trade Navigator up. When executing trades, make sure I'm connected by checking the task bar to see that I'm connected to the servers. Sometimes one thing will show that I'm connected, but all things must be connected.

2. When an order is placed now, make sure my profit & costs stops go with it, just in case there is a disconnected.

3. Have my broker & the floor's #s handy.

4. Do NOT hover over the trading ladder with my cursor unless I'm willing to execute a trade.
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