Well I was able to sell a watch that my parents bought for me in '08/'09 and that nobody cared about to get some money to refill my account back to near $1300. Not a lot and I expect to lose it like last time since it is still way too small of an account size but it is what I have so I have to make it work. I might have a better chance though this time since I have been looking at what has worked for me and what hasn't and I may implement some new rules due to my small account size. One thing to note is that including the VBLT stupid loss of -255, my losses since my first trade in February to now have equaled my commissions. Both are $590 along with $100 in ECN fees. Without that VBLT loss I would be at about $350 in losses, which wouldn't be bad if there weren't commissions. Anyway, the point of this post is to gather some info as I go through my previous trades since day 1.
This will probably end up being a random collection of thoughts/notes:
1. Don't take commissions into account when wanting to stop out breakeven including commissions. Let the trade work out. Obviously, commissions equaled the amount of losses you had (or more not including VBLT) but it is the cost of doing business and $5 saved is nothing. I rather let the trade work. So, don't try to save commissions on a trade you are already in. Forget it.
2. Have no idea of "confirmation". Confirmation is after the fact. If a stock is at a point where you can have a good r/r then do it. Confirmation is only after the fact when it is too late. Too many times I have been waiting for "confirmation" and by the time I get it, it is too late and I missed another trade.
3. While having patience with winners is good, always look to take the trade off. Capital preservation is key and having any winner, over time, will add up. It is much better than what has happened before at times when I had a decent win but failed to take it off and I was at breakeven. A balance of patience and locking in is key. This will have to be adjusted as time goes on.
4. Try to see if you can wait until a higher low/lower high has really formed before buying/shorting. This may be in conflict with #2 but not so much. I am just looking for a little drop and confirmed lower high or a little perk off a higher low for more confidence. I have seen many times where a stock will have what looks like a lower high forming and then in the middle of it, it just rips. So that can save me from some potential fakes.
5. Always look to reenter a trade if it sets up again. Look for retests of prior support as resistance for shorts and vice versa for longs. Conversely, don't try to play a stock if the move happened already and there is just scraps left.
6. Try to get to breakeven as quick as possible. Examples: CONN, GENE, OREX, and more I am sure as I am going through my posts as I type this. On CONN, I could have easily brokeven and re-evaluated if it setup again. On my OREX short, I could have put a breakeven stop if it came back and avoided taking a loss on that. Same with GENE. The WBAI trade was stupid due to my small stop and the fact that anything could happen overnight and in the AM.
7. Stay cautious on front side of move. Perhaps scalp only as Nate always says - even with bigger size.
8. Look at multiple timeframes.
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