Twitter is very popular nowadays. I almost hear reporters talk about it every morning on radio recently when I am driving to work. There are some 200 million people registered with it if I don’t remember it wrong. It is a simple application to let friends and family knows what you are doing and at time keep in touch with them.
Since it is so popular I signed up for twitter also and you can follow stock traders blog here in twitter. I will follow you back if you follow me.
I just got a comment in my mail box. I am glad that I frequently get positive comments regarding this blog not long after I started it. I wish the commentator good luck. Please don’t be offended because I quoted your lines here.
I like reading your blog, keep it up please! I am day trader like you and, boy, most of your trades is basically a copy of what I do 
I lost big on WFC, won little on BOF but lost it all and 10 times more, so decided to leave bank stocks alone. Switch to Scottrade if you want to save on commission, they charge $7 over $10 at TD Ameritrade. And Scottrade is lightning fast compared to Etrade or TD. The downside is Scottrade often doesn’t have shares available for shorting so I keep Etrade account for short positions.
I am pleased when I read honest opinion and one of the motive that I started this blog is that I want to see honest opinion instead of reading most of the craps on Yahoo stock message board. I wish to build a community for stock traders for any experience level so that we can we can share analytical thoughts, train each other and share the joy of gain and the pain of lost honestly. One of the purposes of the blog is to promote discipline in trades for me and defying my gambling mind. But I believe it will apply to all traders and investors as well. Discipline is key.
I have know for long that the world financial markets tend to echoing each other and ADR issues have the tendency following its home market performance but I hardly pay attention how much the world market went up yesterday.
I just found out that China and Hong Kong index went up almost 4% yesterday. Japan went up 1.63%. Most Europe market went up 3% yesterday. For Baidu which is a high beta stock usually the percentage it went up or down will be bigger then the index. In fact its change is usually two times of the Nasdaq or its home market.
So I don’t understand why I took a short position this morning when the market was up only 100 point (DIJ). That was 1.3% only. And I don’t understand why I took the short position on Bidu when it was up only $9 which is 3.5%.
First I was wrong on taking short position. Second I was wrong on taking the short position before the market running out of its potential today. Third I was wrong on taking the short position on Bidu and fourth I was wrong on breaking two of my guidelines. I didn’t think twice the probability of a better entry point. I have doubled my initial bet of on a trading day.
What a messy day. Should I take lost right now?
I tend to win small but lost big. Is that a typical day trader’s fate or just me? I can not defy the temptation of the surprise gain. And of course I miss judged the market. The US market opened higher following the world. I thought the market should be trending down during the day because of the GM bankruptcy news. So when BIDU jump $9 at opening I thought it was a good opportunity to short. I took a short position at $272. I was so wrong and when it went up to $279 I increased my short position again but it went up over $287. I lost $2500 currently.
The market hardly pay attention to the GM news. In fact it seems to be celebrating it. It almost wipes out my entire gain for the past month. Just as my trade on Wells Fargo wiped out my two months of gain for about $10,000 before I started this blog I feel history is repeating itself again. I am being punished for not being discipline.
I was not convinced that this would be a bull market so I frequently took the short side. Now I am convinced that life on the long side would be a lot better. Another lesson I learn is that I don’t know how to stop. I should’ve cut my lost when BIDU went above $275 but I didn’t. I really don’t know what to do now. Let me know if you have suggestions and I would love to hear from you.
I am still holding the short position at the end. At market close my account lost $2,119.40
Account Balance Change: -$2,119.40
