Monday, April 5, 2010

1st blog post...?

not really. i set this thing up months ago, thinking i would use it to track my thoughts. but life got a little bit busier for me and all that good stuff, so it fell by the wayside. regardless, i'm still intending to use this for something. maybe not everyday, but for something. i really want to write down the decision making process based on some TA. in general, tracking mistakes and accomplishments is what i set out to do with this.

is this an elliott wave blog? no. i'm not going to keep counts here. i like elliott and find value in some of it's techniques, but i'm going to focus on shorter term trades, as opposed to set ups and swings. being relatively new to trading, i haven't had much luck with the swing personally. doesn't mean i won't pick it up someday, but for now my focus is on some options day trades. why options? glutton for punishment i suppose...

i apologize for the name of this blog. i'm kind of a smart ass, so i thought blog title here would be as unhelpful as possible :-P

blah blah blah, let's look at some charts:

swank_qqqq_15min_4-2-10

i entered into a trade on friday, which was long some 47 QQQQ april calls. i picked them up at about 11 - 11:30 a.m. mountain (sorry east coasters, 1 - 1:30pm) as the price started to accumulate around the PP. at the time, sto was oversold, rsi was way oversold. now, as we all know, these two can embed and hang out there for a while in oversoldland. consequently, the price action headed south, which happens... (ugh).

the lesson learned for me was not waiting for the macd to catch up. once macd hit an oversold status (which for the time being, i'm going to consider -0.07 and below as oversold in this example), it started to bounce. my stops for the trade were going to be around the next pivot down, which was S1. well, it got close and i almost bailed. but since it didn't break down below S1, the next logical step in the price action is to bounce back up to the PP (which it did, phew!).

i left the trade up over the weekend, since mondays have been really bullish. macd crossed back over, sto and rsi were out of the funk. all is well, right? i would've said yes, but i managed to screw the trade up. i dumped the calls a bit after the open this morning. (Doh!) i just wasn't feeling it. in fact, the Qs went neg briefly. i was spooked out of my trade and bailed. so at the end of the day, i basically broke even. picked them up a 1.50 and dumped them at 1.52.

i'm a bear at heart, so i guess i should consider this as a victory of some sort. i didn't get my face ripped off on a short position on monday again. it's never fun leaving money on the table (those calls were up about 25% later this morning), but trading is fun, and so is learning.

wow, long post. sorry... lol

current position: none
current outlook: looks like a bull flag on the Qs. it's pretty much parked on R1 pivot and the VWAP seems to be acting as support. my bet would be more upside, but i'm not going to make that bet going into the close here today.