Dinosaur Trader made a good post today about a chapter in the book Market Wizards, and I wanted to share it with you. The post is titled “Michael Marcus: Market Wizard”.
Orionmachine made a good video about why day trading is no riskier than long term investing/swing trading. I liked it so much I wanted to share it with you. I would embed the video, but it looks so nice that you should head over there to watch it in HD. The link to the video is: http://www.youtube.com/watch?v=Yay_pGnDnMg
As far as my trading went, I almost screwed the pooch on my 1st trade in DDM. My mistake was not waiting a few more bars before I bought it. I thought about going short (buying TWM) instead but I noticed that the 10M chart was still in an uptrend, and the daily chart looked like we could break out to the upside.
After I exited DDM I decided to step away from the computer because I was a little shaken up. After about 10-15 minutes I came back, and found that I had missed a long in the DJIA (DDM) at about 11:45amMST. That didn’t bother me too much though because I know that it’s better to miss a gain than to trade while emotionally stressed. My 2 paper-trade losses in TWM, and DDM could have been avoided had I been willing to take more risk in TWM, but that’s how it goes sometimes.
The total figure for “Discretionary trading” does not include my paper-trades.
Totals for the day
Discretionary trading: (+.92%) (+$243.09)
All times on the charts are Mountain Standard Time.
DDM – Long (+.92%) (+$243.09) My only real trade for the day I should have waited longer before I entered, almost turned out to be a -1.24% mistake
TWM – Long (-1.47%) paper-trade Cut losses, would have held on but stop-loss would have been $69.98 and I couldn't take a 2.20% loss mentally
DDM – Long (-1.04%) paper-trade
UWM – Long (-.55%) paper-trade
Click here for a video of today’s trades
Gapers: (0%) paper-trading
10k strategy: (0%) paper-trading
All times on the charts are Eastern Standard Time.