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Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)
I think ill let it get close to 44$ then bail.
I think ill let it get close to 44$ then bail.
Darkhorse's "REAL MONEY" trading diary (noob friendly haha)
- Thread starter darkhorse70
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Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)
So I sold out as soon as the markets opened. I think some where between 42.60/80. I thought id take every ones advice and re evaluate my mental state and for other reasons mentioned above. On a positive note I am up 440$ or 5.5% of a total 8000$. Not that, that proves anything.
Im also frustrated at the fact that IB takes 3 business days to settle trades before I can re convert back to AUD. I basically cant even day trade on that note since it takes 3 days before the balance is settled which is so stupid imo.
So I sold out as soon as the markets opened. I think some where between 42.60/80. I thought id take every ones advice and re evaluate my mental state and for other reasons mentioned above. On a positive note I am up 440$ or 5.5% of a total 8000$. Not that, that proves anything.
Im also frustrated at the fact that IB takes 3 business days to settle trades before I can re convert back to AUD. I basically cant even day trade on that note since it takes 3 days before the balance is settled which is so stupid imo.
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Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)
Overall judging my trade, id rate it as a very bad trade. Not only did I have no reason to sell, but I shouldn't have entered that trade as I should be focusing on hopping onto trends not anticipating rallies. Not my style. If only I could short. If I do choose to jump on some rallies, I should atleast do it on very low risk set ups and as you guys said this was not the case where it has gapped very severely.
Emotionally I was not very relaxed but I think that day trading has more emotional pressure as you are watching the tape very closely and are not able to pull back from the trade and let it run while you are not present.
Overall judging my trade, id rate it as a very bad trade. Not only did I have no reason to sell, but I shouldn't have entered that trade as I should be focusing on hopping onto trends not anticipating rallies. Not my style. If only I could short. If I do choose to jump on some rallies, I should atleast do it on very low risk set ups and as you guys said this was not the case where it has gapped very severely.
Emotionally I was not very relaxed but I think that day trading has more emotional pressure as you are watching the tape very closely and are not able to pull back from the trade and let it run while you are not present.
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Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)
By the way some profit was directly because of the currency moving in my favour but most likely only a very minute amount.
By the way some profit was directly because of the currency moving in my favour but most likely only a very minute amount.
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Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)
Good result. There were a lot of worse scenarios possible
Good result. There were a lot of worse scenarios possible
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Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)
Haha barney, all my tradong experiences have started on a good note and ended badly. Lets hopd ive learnt a thing or two.
Haha barney, all my tradong experiences have started on a good note and ended badly. Lets hopd ive learnt a thing or two.
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Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)
Actually there were some positives to take out of the trade irrespective of whether it was good or bad trade.
Your Entry for a start was well thought out and well executed. There's not too many who could have nailed that any better right near the bottom of that short term drop. You assessed the momentum had shifted by watching the price action. If you can hone that skill it will serve you well.
Just keep listening to the people here who can help you. You know who they are
Good luck with the next 5000 trades
Actually there were some positives to take out of the trade irrespective of whether it was good or bad trade.
Your Entry for a start was well thought out and well executed. There's not too many who could have nailed that any better right near the bottom of that short term drop. You assessed the momentum had shifted by watching the price action. If you can hone that skill it will serve you well.
Just keep listening to the people here who can help you. You know who they are
Good luck with the next 5000 trades
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Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)
Thanks barney, will do. Thanks for the feedback mate, reqlly helps.
Thanks barney, will do. Thanks for the feedback mate, reqlly helps.
Trembling Hand
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Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)
No actually there was not. Its a trade, or position sizing, that is setting up for a quick hit at some stage.
I just ran a simple back test to see what is the likely actual average stop when you set it at $1.00. I was surprised that it only came out a bit bigger at -$1.14 but that hides the possible disaster around the corner by the sample period. Just by luck it missed a few of the big overnight drops. Still it managed to catch a nasty 5R loss.
No actually there was not. Its a trade, or position sizing, that is setting up for a quick hit at some stage.
I just ran a simple back test to see what is the likely actual average stop when you set it at $1.00. I was surprised that it only came out a bit bigger at -$1.14 but that hides the possible disaster around the corner by the sample period. Just by luck it missed a few of the big overnight drops. Still it managed to catch a nasty 5R loss.
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Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)
Yep, fair call TH.
My encouragement of "Dark's" trade should have been clearer.
"Dark", to clarify .......... As TH is pointing out, even the best Entries in the world won't save you if you get the important stuff wrong .... ie. Position size/Risk relative to your account size etc.
Your entry was about as good as it could have been under the circumstances, but juggling blades and over position sizing simultaneously is a recipe for ruin .....
Apologies if there was any confusion over that
Yep, fair call TH.
My encouragement of "Dark's" trade should have been clearer.
"Dark", to clarify .......... As TH is pointing out, even the best Entries in the world won't save you if you get the important stuff wrong .... ie. Position size/Risk relative to your account size etc.
Your entry was about as good as it could have been under the circumstances, but juggling blades and over position sizing simultaneously is a recipe for ruin .....
Apologies if there was any confusion over that
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Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)
Ok thanks for the feedback TH, barney.
Are you guys trying to say that im not defining my risk correctly?
If so I admitt I dont statistically do it how you are TH. I should be. Maybe I should look into how you came up with those charts.
Thanks again. I want to fix any mistakes asap.
Ok thanks for the feedback TH, barney.
Are you guys trying to say that im not defining my risk correctly?
If so I admitt I dont statistically do it how you are TH. I should be. Maybe I should look into how you came up with those charts.
Thanks again. I want to fix any mistakes asap.
tech/a
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Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)
Well that's not going to happen.
Your trading a leveraged instrument while under capitalized.
Fix that issue first.
Well that's not going to happen.
Your trading a leveraged instrument while under capitalized.
Fix that issue first.
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Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)
Tech, what do you mean leveraged? Its an equity. (Serious question).
Also what is the minimum to fix my capital issue?
Thanks
Tech, what do you mean leveraged? Its an equity. (Serious question).
Also what is the minimum to fix my capital issue?
Thanks
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Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)
Im assuming its all relative to the stock price and risk of each stock?
Im assuming its all relative to the stock price and risk of each stock?
tech/a
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Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)
Sorry seniors moment---thought we were talking Forex.
Ill go back to sleep.
Even though your undercapitalized.
Sorry seniors moment---thought we were talking Forex.
Ill go back to sleep.
Even though your undercapitalized.
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Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)
"Dh", I'm not the one to tell you where you are going wrong, but what the guys here (who you need to listen to) are pinpointing for you is, when you take a trade, you Have to look at the worst possible case scenario.
You have a small Bank of around $7K
You put capital of around $6.4K on your trade
The problem is not the $6.4K .... its the $7K !! In reality, you are way undercapitalised.
Worst case scenario ... Twitter had recently once gapped what? ... $14 or something? Then more recently another $8 gap.
Ok so it was unlikely you would get hit with one of those, but what if you did? Your proposed $160 risk immediately becomes a 14X or 8X your "planned" amount
14X $160=$2240 which is about 1 third of your Bank. You may get lucky and never hit a Black Swan, but the longer you trade, the more likely it is ..... and what if you hit a couple in a row!!
The above is the reason why TH originally asked you if you were holding for more than a day. A soon as you hold any stock overnight, you open yourself up to more risk .... that risk needs to be factored in.
Ask Tech and TH more questions
Cheers.
"Dh", I'm not the one to tell you where you are going wrong, but what the guys here (who you need to listen to) are pinpointing for you is, when you take a trade, you Have to look at the worst possible case scenario.
You have a small Bank of around $7K
You put capital of around $6.4K on your trade
The problem is not the $6.4K .... its the $7K !! In reality, you are way undercapitalised.
Worst case scenario ... Twitter had recently once gapped what? ... $14 or something? Then more recently another $8 gap.
Ok so it was unlikely you would get hit with one of those, but what if you did? Your proposed $160 risk immediately becomes a 14X or 8X your "planned" amount
14X $160=$2240 which is about 1 third of your Bank. You may get lucky and never hit a Black Swan, but the longer you trade, the more likely it is ..... and what if you hit a couple in a row!!
The above is the reason why TH originally asked you if you were holding for more than a day. A soon as you hold any stock overnight, you open yourself up to more risk .... that risk needs to be factored in.
Ask Tech and TH more questions
Cheers.
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Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)
Loll Tech.
Barney, that makes complete sense. I should have been more carefull. That was wreckless put in that perspective.
Current liquidity net worth $8500AUD. By next thursday it should be bumped up to $9500 from my working salary.
My question is this. Nearly all stocks have gapped one time or another. Atleast the ones im looking at. Obviously the percentage is low but id it does happen it would be devastating.
So how do you manage that?
Not to be fully invested in it? To avoid them?
I thought by being selective in regards to e try timing you could really minimze it. Obviously TWTR was a bad idea in that perspective.
Loll Tech.
Barney, that makes complete sense. I should have been more carefull. That was wreckless put in that perspective.
Current liquidity net worth $8500AUD. By next thursday it should be bumped up to $9500 from my working salary.
My question is this. Nearly all stocks have gapped one time or another. Atleast the ones im looking at. Obviously the percentage is low but id it does happen it would be devastating.
So how do you manage that?
Not to be fully invested in it? To avoid them?
I thought by being selective in regards to e try timing you could really minimze it. Obviously TWTR was a bad idea in that perspective.
skc
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Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)
Take a smaller position. There is no other way.
Take a smaller position. There is no other way.
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Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)
Its a tough gig in reality .....
If you had a $200K Bank and you risked the $6.4K you did on twitter and it gapped down $12, you have still only lost roughly 1% of your account which is not ideal, but manageable.
It becomes a personal call as to what you feel comfortable trading and how much risk you are prepared to take on, but a small Bank makes life pretty difficult trading Stocks.
Its a tough gig in reality .....
If you had a $200K Bank and you risked the $6.4K you did on twitter and it gapped down $12, you have still only lost roughly 1% of your account which is not ideal, but manageable.
It becomes a personal call as to what you feel comfortable trading and how much risk you are prepared to take on, but a small Bank makes life pretty difficult trading Stocks.
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Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)
Thanks barney. Since my beokerage fee is only like $1 , I guess I can still diversify between 2/3 different shares or trade in lots of 3000$ to minimize any unexpected risk.
Thanks mate. Ill definately be more aware next time.
Thanks barney. Since my beokerage fee is only like $1 , I guess I can still diversify between 2/3 different shares or trade in lots of 3000$ to minimize any unexpected risk.
Thanks mate. Ill definately be more aware next time.
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