Monday, August 17, 2015

8/10 - 14 Weekly Recap AQXP!

It has been several weeks since I have written a blog.  Mainly due to my 2 weeks on vacation and I started doing videos of my trades which has helped me visualize them a bit better.  I am in beast learning mode and take advantage of every free legit webinar.  It has to be from an established proven Guru who has a similar trading style as me.  I am NOT looking for new strategies or setups.  I am ONLY looking to improve my recognition and execution of my best strategies.  TLC sings my theme song for this: "Don't go chasing waterfalls, stick to the rivers and the lakes that you're used too". I feel that I am at the point where I have found my niche and now it's time to perfect it and ramp up my position size.

I said to myself before that I would never pay anyone to mentor me.  I felt that I would be able to get someone to mentor me and help me reach the next level but I can honestly say that I had the wrong idea about this.  I have hooked up with an awesome mentor from the DTW chat room and it is worth every penny I have spent.  Once you reach a certain level in your trading you need a one on one coach to help you get to the next level in your trading career.  Mike has helped me turn the corner.  I have eliminated dead trades because he has shown me why not to get in them to start with.  My trading frequency has been cut in half but most of my trades are profitable now.  Most of all I can take full advantage of the information he shares everyday on the mic in chat.  It is great now to hear Ross, Mike, and Jeff all day in chat.

I have also been following Kunal Desai from Bulls On Wall Street.  I am not a member of the chat though.  As a matter of fact I am in the middle of a free 4 day webinar he is giving for beginning traders.  Even though I am not a beginner, I am learning a lot of small things that are easy to miss when you start growing.  He trades my main setups and he shorts a little more so that is what I have been focusing on with him.  I haven't been more excited about trading since I have started.

Also, I have been offered a temporary education consulting position that is part time and making some good $.  I think I will take it and continue to save and build my trading account up.  I want trading to still be my full time position but I need to make money when it is offered.  Plus I have an office so I can set up a little trading station so on the days I am working I can still trade.

Now to a little knowledge.  I talk to a lot of traders who are having trouble trading and making a profit.  They have knowledge, they can recognize the setups, but are missing one element; themselves.  We are the hardest thing to learn and master in trading.  So here is my advice:

We have to take ourselves out of the equation.  We can do that by looking at our trade the way a lawyer looks at his case.  We have to build evidence to prove our case that a potential trade meets our criteria for entry.  As we look at the evidence and there are too many holes in it, it's time to settle out because it most likely won't be a winner.  I know what you are thinking.  I don't have time to do all of this.  The answer is practice.  You have to practice recognizing patterns, analyzing technical
data, and making a plan.  My biggest mistake was live trading too soon.  Now I can recognize a pattern, vet a ticker, and make a plan in no more than 2 minutes.  Since I trade on a 5 minute chart that is perfect timing.  To get that fast I had to practice and the more I trade, the better I get.

The last thing I want to share is another problem that fellow traders share with me.  They have a hard time letting a trade work.  They will stick to their stops but cut a trade off early to book profits.  On one hand it's good to book some profits for confidence sake but here is the issue.  Say you risk .20 to make .40 on a trade. You trade 500 share positions on each.  You get 2 winning trades that you just took profit on because you were green and you had a candle pull back and end up with an average of .12 a trade profit. Then you hit a losing trade that you followed your plan and let it stop out.  Even though you had two green trades you are still negative once commissions come out.  Now what does that do to your mindset.  It would be only natural to become more timid trading and not let your potential winning trades work.

My answer used to be reduce position size.  But what do you do if you are trading 200 shares or 100 shares.  The strategies I used was to hide my P&L and write my plan out.  This allowed me to trade the chart and price action.  Eventually I was able to trade without writing it out and just trade the chart.

If you are having any of the problems I discussed, please just slow down.  All this means is that you are moving too fast!  I had to do this.  I had to learn how to turn left to go right.

So, now to the mega-week I had last week.

$2,512 profit AQXP Long Stock by AverageJoeTradr

Didn't get to do a video on this one but it was a straight forward momentum trade on a morning gapper. The second green candle opened above the VWAP and the 9EMA crossed over the VWAP so I took it long based on that confirmation.  Really got scared out because of the amount of halts.  There was no reason for me to sell out when I did. And yes, I was getting ready to head back from vacation which is why I didn't get to trade this anymore or anything else for that matter.

$360 profit SUNE Short Stock by AverageJoeTradr
$635 profit SUNE Long Stock by AverageJoeTradr

See Video:

$750 profit TERP Long Stock by AverageJoeTradr

$291 profit GPRO Long Stock by AverageJoeTradr
$80 profit GPRO Long Stock by AverageJoeTradr
$59 profit GPRO Long Stock by AverageJoeTradr
$45 profit GPRO Long Stock by AverageJoeTradr

($81) loss KSS Long Stock by AverageJoeTradr