isa's short term trading journal

[isatrader]

Account Update

I had a quiet week and only made two new trades and was stopped out at breakeven on the open trade from the week before. The first new trade was an attempt at scalping the S&P 500, which was quickly stopped out. So I took a step away after that and have been considering whether I should be making day trades at all, as they have proved largely unsuccessful for me. I also don’t think it helps with the S&P 500 spread trading 24 hours a day as the reason I was stopped out was because the spread is widened out of normal hours from 0.6 to 0.8 points, so I wouldn’t have been stopped out if it had got to the same price during normal hours.

So my current thinking is that I should instead try and do more short term position trades, that last a few days or more, and also have a longer term position in the S&P 500 when I have enough risk available.

The position in Vedanta that I opened at the close on Friday was a bit impulsive. It had a 17 point spread and it’s too much risk for my account, so if it doesn’t have a strong open on Monday then I will probably close it, as risk management is my priority.

Below are the usual charts

 

[top trader]

If your aim is to make 3%/month THEN I would not touch VEDANTA as it is very volatile (you make more or loose more)
I traded NG. 5 times last week with 5.5 times gearing, i.e £10/point for every £1000 available for margin. Each time I got 4- 8% back. Last week's trading range was 528-542p.

Closed at 542p.

 

[isatrader]

If your aim is to make 3%/month THEN I would not touch VEDANTA as it is very volatile (you make more or loose more)
I traded NG. 5 times last week with 5.5 times gearing, i.e £10/point for every £1000 available for margin. Each time I got 4- 8% back. Last week's trading range was 528-542p.

Closed at 542p.

Hi top trader. I'm glad you were successful with NG. But what was your risk management per trade may I ask? As looking at NG, it has an daily average true range of 12.5 points currently, which at £10 a point would risk 3% of my account – so that would be double my monthly maximum risk on a single day. If I traded NG and used my standard initial stop loss of 2.5 x ATR, then my maximum position size of 0.5% risk would only allow me to trade 65p per point.

So like I said, I've broken my rules with Vedanta, so will most likely close it immediately on Monday if it doesn’t open strongly.

 

[top trader]

With NG. you are bit safer than Vedanta therefore you are allowed to brake rule.

I normally have 10 times gearing with ng. but I had few other positions opened.
Keep an eye on DGE and BG.

I will give you a shout next time, if I remember BUT do your own research etc.

 

[isatrader]

UK Shares Trading Group Idea

I've had an idea for a thread that would be a place for people who trade UK shares to collaborate on a weekly basis. I currently participate in the Elder Spiketrade group, which is a friendly competition where you submit a US stock pick each weekend and then trade it via his site during the week. So I'm thinking we could do a similar thing on a thread on T2W but for UK Stocks, and for free, where each member would submit a UK stock pick each weekend. They would say whether it was long or short, and give a detailed reason as to why they think it’s a good trade and where they are looking to enter. Each pick would have to have a stop loss and a target and ideally a marked up chart.

I think the benefit of it would be that it would be a good way for people here to learn from each other and also a free resource for trade ideas that week which people could then go and do their own research on.

Let me know if anyone's interested?

 

[SlipperyC]

Re: UK Shares Trading Group Idea

I've had an idea for a thread that would be a place for people who trade UK shares to collaborate on a weekly basis. I currently participate in the Elder Spiketrade group, which is a friendly competition where you submit a US stock pick each weekend and then trade it via his site during the week. So I'm thinking we could do a similar thing on a thread on T2W but for UK Stocks, and for free, where each member would submit a UK stock pick each weekend. They would say whether it was long or short, and give a detailed reason as to why they think it’s a good trade and where they are looking to enter. Each pick would have to have a stop loss and a target and ideally a marked up chart.

I think the benefit of it would be that it would be a good way for people here to learn from each other and also a free resource for trade ideas that week which people could then go and do their own research on.

​

Hi,

I'd be interested, however I generally trade indices (DAX, S&P) and some fx (aud/usd) rather than individual shares. Usually I trade with IG Index and I can get guaranteed stops on shares to cope with overnight gaps but I'm still not too keen. I prefer the greater liquidity with indices/fx.

Count me in if you want though. I work full-time but can manage to trade and respond during the day.

 

[isatrader]

Re: UK Shares Trading Group Idea

I've had an idea for a thread that would be a place for people who trade UK shares to collaborate on a weekly basis. I currently participate in the Elder Spiketrade group, which is a friendly competition where you submit a US stock pick each weekend and then trade it via his site during the week. So I'm thinking we could do a similar thing on a thread on T2W but for UK Stocks, and for free, where each member would submit a UK stock pick each weekend. They would say whether it was long or short, and give a detailed reason as to why they think it’s a good trade and where they are looking to enter. Each pick would have to have a stop loss and a target and ideally a marked up chart.

I think the benefit of it would be that it would be a good way for people here to learn from each other and also a free resource for trade ideas that week which people could then go and do their own research on.

​

Hi,

I'd be interested, however I generally trade indices (DAX, S&P) and some fx (aud/usd) rather than individual shares. Usually I trade with IG Index and I can get guaranteed stops on shares to cope with overnight gaps but I'm still not too keen. I prefer the greater liquidity with indices/fx.

Count me in if you want though. I work full-time but can manage to trade and respond during the day.

It doesn’t necessarily have to be individual shares. Is just the area I’m interested in the most. It could work with indicies or forex as well, would just be harder for people trading forex if we do end up making it a friendly competition, as the percentage moves are lower.

Same principles as I mentioned before. i.e. one pick per week submitted by the end of the day on Sunday. Then saying whether it was long or short, and give a detailed reason as to why you think it’s a good trade and where you are looking to enter. Each pick would have to have a stop loss and a target and ideally a marked up chart.

We could start it next weekend? I’ll need to come up with an intro post for the new thread and a standard template that we can use for submitting the pick. Also will need to think of a name and where to put the thread? Off the top of my head something like "Pick of the Week" maybe? Or something with group in it. Or maybe "Careful – Requires Effort"

What do you think?

 

[SlipperyC]

Re: UK Shares Trading Group Idea

It doesn’t necessarily have to be individual shares. Is just the area I’m interested in the most. It could work with indicies or forex as well, would just be harder for people trading forex if we do end up making it a friendly competition, as the percentage moves are lower.

Same principles as I mentioned before. i.e. one pick per week submitted by the end of the day on Sunday. Then saying whether it was long or short, and give a detailed reason as to why you think it’s a good trade and where you are looking to enter. Each pick would have to have a stop loss and a target and ideally a marked up chart.

We could start it next weekend? I’ll need to come up with an intro post for the new thread and a standard template that we can use for submitting the pick. Also will need to think of a name and where to put the thread? Off the top of my head something like "Pick of the Week" maybe? Or something with group in it. Or maybe "Careful – Requires Effort"

What do you think?​

​

Sounds good to me, I'm in.

What did you do with Vedanta?

​

 

[isatrader]

Vedanta (VED) – Exit

Trade

Vedanta Resources Jun 11 Spread
Direction: Long

Entry Price: 2419.16

Stop: 2248
Target: 3090.95

Account Risk: 2.09%
Potential Account Profit: 8.19%
Risk Ratio: 3.92

This is a big position for my account and breaks my rule of a maximum single position risk of 0.5%. However, I’ve bought this as an intermediate term buy using the June 11 Spread, so I’m able to hold it until 14/06/2011.

Entry Reason
Vedanta has pulled back to it’s 50 Day EMA after a strong breakout of it’s year long consolidation pattern in December. Price managed to stay above yesterdays low and a potential double bottom is forming. It’s above it’s 200 day moving average which is currently 2300.23 on the actual stock.

The fundamentals look good as well with +75% EPS growth forecast to 31-Mar-11 and +105% EPS growth to 31-Mar-12. Recent broker upgrades by Deutsche and Morgan Stanley to 3600p. It also has a strong Quick Ratio (Acid Test) of 2.22

Closing trade

Entry: 21/1/11
Price: 2419.16

Exit: 24/1/11
Price: 2394.52

Points: -24.64 (-7.64 inc spread cost)
Trade Percentage: -1.02%

Daily Channel Captured: -6%
Trade Grade: C-

Account P/L: -0.30%

Exit Reason
Vedanta opened around 1% higher this morning, but sold off quickly back past my entry point. So even though it hasn't broken through the low on Thursday and could still bounce there I've decided to close the position as the risk is too much for my account. I believe in Vedanta as a long term play which is why I own the actual shares in my ISA, but short term it's unclear for me where it's going at the moment.

 

[isatrader]

Re: UK Shares Trading Group Idea

​

Sounds good to me, I'm in.

What did you do with Vedanta?

Cool, I think it will be good.

Sold Vedanta at 9am for a small loss. Will probably be the pivot low now, but don’t want to be stressing about a position. Was just too big for my little account. I have to stick to positions below 1500 points.

 

[isatrader]

I'm trying to think where the best place to put our trading group thread is. I think maybe one of these two?

– Spread Betting
– Swing & Position Trading

The Spread betting section seems to have more active people on it. So probably that one?

 

[barjon]

I'm trying to think where the best place to put our trading group thread is. I think maybe one of these two?

– Spread Betting
– Swing & Position Trading

The Spread betting section seems to have more active people on it. So probably that one?

why not UK equities?

jon

 

[SlipperyC]

I'm trying to think where the best place to put our trading group thread is. I think maybe one of these two?

– Spread Betting
– Swing & Position Trading

The Spread betting section seems to have more active people on it. So probably that one?

​

The SB thread sounds right.

Well done on Vedanta. I think you are probably right long term but for a day/swing trade it seems quite punishing.

I used to trade shares via CFD a few years ago - (my tag says something like 'Newbie' but I've been around this forum since 2003 and been trading since around 2000) - but ended up getting crushed by volatility and gaps in some of the shares I chose. Plus, I was a lot less experienced. Am considering a move back to it in a small way via level 2 order books.

 

[isatrader]

why not UK equities?

jon

It was my original plan to put it in UK equities, but I thought it might be out of place now as although I’ll be doing UK equities, other people might be picking indicies or forex positions, so I think it needs somewhere broader now. Any other suggestions that you think would be good?

 

[isatrader]

​

The SB thread sounds right.

Well done on Vedanta. I think you are probably right long term but for a day/swing trade it seems quite punishing.

I used to trade shares via CFD a few years ago - (my tag says something like 'Newbie' but I've been around this forum since 2003 and been trading since around 2000) - but ended up getting crushed by volatility and gaps in some of the shares I chose. Plus, I was a lot less experienced. Am considering a move back to it in a small way via level 2 order books.

I don't take a lot of notice of the tags as they are just done by how many posts someone makes. I tend to click on someones name and look at the all posts page for the person. You can see at a glance the kind of things they have said and what they are interested in. For people who haven't posted I just approach them with an open mind, as I realise there's a good chance they'll know a lot more than me as I've only been trading since 2007.

 

[SlipperyC]

Goddamn Vedanta! For now it appears to have double-bottomed around 2360 and bounced nicely!

If you've got the margin and stomach, thats a nice 100+pts round trip in one day - so far!

 

[isatrader]

Goddamn Vedanta! For now it appears to have double-bottomed around 2360 and bounced nicely!

If you've got the margin and stomach, thats a nice 100+pts round trip in one day - so far!

That's why I had to close it, is far to volatile for my little spread betting account. It opened 1% up then dropped to about 0.5% down and is now almost 2% again.

Hopefully it will continue to rally now and give me some decent profits in my long term position.

 

[isatrader]

Support and Resistance

Attached is my updated 4 hour support and resistance chart for the US SP 500 Mar 11 Spread. It looks like previous support level of 2% is now acting as resistance.

 

[top trader]

NG., BG. and DGE........... All ended in plus.


bad luck with VED, Best not to touch miners when you do spread betting.

 

[isatrader]

NG., BG. and DGE........... All ended in plus.


bad luck with VED, Best not to touch miners when you do spread betting.

Hi top trader, you should take part in our new trading group. One pick a week from each person. I wrote about the idea a few pages back. Here's the link: http://www.trade2win.com/boards/trading-journals/112912-active-trading-spread-betting-journal-11.html#post1397770

Am starting it this weekend. What do you think?