To make the blog more interesting I've decided to post same play-by-plays of actual trades that I make from time to time. The hope is to get more into chart details and analysis of what goes right and wrong during the trade. To start things off I will post my trade of ATPG from today.
Eyeing it up at open
I get in with a market order a few seconds later
Early success!
What to do? Ride through the bump or get out?
This is why I like Ramtajogi's calculator so much. When the Dow surges, the odds of the short go from fantastic to a coin flip.
These aren't just abstract stats. The uptrend in ATPG directly coincides with the Dow moving steadily up at 11:00.
I got out at 6.18.
I got out at 6.18.
It turns out that was a decent exit since this was a true reversal.
Final profit
So this isn't really a bragging post. The trade was less than ideal since I had multiple chances to take profit below $6 but didn't. I left about $200 on the table. I give my entry an A and my exit a B- so overall trade: B+
This is where trading strategy gets interesting. Is it better to hold multiday or get out early? The answer has more to do with your personality- I like getting in and out of a trade with decent profit to show for my effort and hate to see reversals take it all back. On the other hand the multiday holds that Muddy does usually result in more profit.
Post any ideas for future things you'd like to see on the blog. It will be impossible to post every trade but I'll try to post some interesting ones.
Posts
6 comments:
Nice, you got it within the first 3 mins of the open. Doesn't get much better than that for the entry.
yes my 5 min rule got cut a little short haha- I took it over IPCS b/c of the spread... but that one turned out nice also
Nice trade. I love how you detailed all of it. That's pretty cool.
ATPG was one of the few spikers from Wednesday that had about a 50% chance on a Dow green day. With my limited day trades, I'm going to start focusing on these as these seem to do a little better for shorting. I've got a post up about this.
A post like this is very helpful, thanks! Is it standard practice to for shorting to use market orders on entry? Unlike buying stock to go long, your want a short order to be filled as high as can?
yeah I've had the idea to document trades for a while but I keep forgetting to take screen shots when all the action is going on... it's really hard to focus on the trade and take pictures at the same time. This was my first successful experiment.
Charlie G:
the market/limit order is really about just getting the trade in. As you can see from that first red candle, it dropped really far really fast. I would have botched the whole trade if I didn't get in seconds before. That's why I went with the market order. If you think you have time the limit order makes more sense. A short sell is just like a sell, a limit gives you the minimum possible price. But sometimes to save pennies you can miss whole dime moves.
Vento, awesome to see your though process on this
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