The top chart is of the YM futures. I have no idea why I only trade break outs and break downs after news. I have been getting killed most of the times doing this. I have a system of crossover moving averages using a 89 tick chart. The signals are so much better. Why am I not using that?-
The second chart is the big mouth stock of the day. A thing of beauty for trading it short. I caught it for some money but I did not follow the plan again. I try playing these in 50k positions. So CTV is a 24 dollar stock, I should be short about 2000 shares. My first short was 300 shares then I added 200 and finally added another 500 once it broke below 24. I seemed like a had a good winner on my hands. The spread was 4 to 8 cents and it is a thin stock. I got scared quickly and covered 1/2 at 23.90 and once it looked like it bottomed - I covered the rest at 23.60.
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Now I should have played it this way. My first short should have been 500 shares and on the open pop, only my first order was filled at 24.20. I had orders to short more at 24.35 and 24.55. That first order should have been 500 shares too. As the stock got no where fast - I should have hit it with another 500 shares around 24.10. My final add should have been under 24 meaning I was adding to a winner as it was falling. My cost for the 2000 shares should be around 24.12. My stop should be at 24.15 once the stock broke 24. My goal for peeling half would be filling 1/2 of the gap or about 23.60. My other goal would be a 5 minute reversal, a trailing stop or the gap being filled. I think I would have covered the other half at 23.50. I should have made $1200 instead of the $300 I made.
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I had a couple of other trades that I cut short too. It could have a big day fixing the two trades above.
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The numbers:
Stocks: gross +441 net +401 shares 8000
Stock Futures: gross -220 net -238 contracts 8
Forex: none
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