Trades: Wed, 6-Jan-2010

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Day: Wednesday
Date: 6-Jan-2010

# Trades Made = 2
# Profitable Trades = 2 (100%)
# Costing Trades = 0

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

Profits = $62.50
Costs = $0.00

Commissions = $7.98

Net = $54.52 (10.904% ROI)

January Cumulative Net = $80.25 (16.05% ROI)

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Things I Did Well:
1. Used my trading strategy for trading.

2. Waited for the conditions to be met in my strategy before executing my trades. This took me waiting 54 minutes, which seemed like an eternity. As conditions changed, I continued to readjust my entry points.

3. I traded my strategies for both ENTRY & EXIT. My strategies are discretionary, so I took more immediate profits than longer profits.

4. Went to sleep early enough to get a reasonable amount of sleep and feeling alright.

5. Was patient.

6. Did not jump into any trades.

7. Spent time with the Lord.

8. Did gratitudes & Bible time with my kids before school.

9. Showered & dressed for trading.


Learnings From Today:
1. I would have to say I was chatting with a friend on Yahoo IM while trading, but I did tell him to not bring anything up that would distract me more. Still, something to be aware.

2. First Trade - Though I followed my discretionary trading strategies, I did pull out of my first trade way sooner than I would've liked as RSI was retracing a bit. My goal was to get $50 for this trade, but ended up with $25, as I sort of was anxious to get out. I did have my stop to get out at $50, but it looked like the market wanted to move at least to 50% retracement from the high and low of the day, so I was keeping my stop just slightly out of the way.

My ultimate target was @ 1130.75, which was where the 200 EMA was. My trade target was 1131, one tick shy as there is a 1 tick slippage for me. I entered the trade @ 9:53 am MST @ 1133.25. It was hovering around the 50 EMA and I ended up getting out as I thought maybe I was wrong and it was bouncing off the 50 EMA instead of the 200 EMA. I was correct originally - not at a second thought, but it was testing and I didn't realize this, though, my gut told me I was originally correct.

The more short-term RSI downtrend was broken, but in the original RSI downtrend that I was using, it only showed retracing. This was too big of a retracement for me on my chart, so I got out with that and that the bullish volume (though not as strong as bearish) was stronger than I would've liked.

Second Trade is just a continuation of the First Trade. I meant to get in at the retracement, but wasn't quick enough and was filled a couple ticks from where I wanted to get in. It was alright. Entry was at 10:07 am MST @ 1132.25. My ultimate goal was still the same as the first trade, but I still wasn't sure if it would go there. So, I had my profit stop @ 1131.50, which is where the 61.8% retracement from the high/low of the day so far (high = 1134.50; low = 1129.75).

As I realized it was going to punch past this, I attempted to cancel my order, but wasn't quick enough. Got filled @ 1131.50. This also met a more short-term RSI breaking, but not the volume or MACD. What I should've done was to have the profit stop @ 1130.50, completely out of the way and see what it did. Oh well. At least today I took more profits on both my trades than in the past 2 days.

Summary of this learning: Keep profit stops just a little past the target or just before the further target. If it doesn't look like it's going to go there, then move stops in.

3. Eat breakfast. Haven't eaten anything, but did drink a bit of hot tea.
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