Stock Traders Blog

Most part of the trading day was boring. It was pretty much like after market except for the opening and the closing. I caught the boring part to trade with. When I said boring I mean the stock prices were not jumping around. They advanced and retreated one cent by one cent very slowly and in a very orderly manner. If you traded Bank of America and many other stocks today I believe you would have the same feeling. I ended up wasting most of the trading time watching and didn’t see the excitement I expected. But I did manage to make some gain thanks to my stock trading guidelines.

I shorted Bank of America at $11.30 and cover at $11.25 in early morning. I only net about $30 on that deal. I shorted Baidu at $264 and covered at $262.5 later. I thought that was it for the day but when I saw BAC got below $11. I entered at $10.98 again. But I sold it too early at $11.12. Total net gain was $278.77

Somehow I didn’t feel I accomplish a lot today and kept thinking “Dame, it is only $278.77”. I remembered last month before I set forth my trading guidelines I frequently net over $1000 a day. No… No…No… No… in fact I am lying to myself. Such cases happened only on a few occasions. However they keep coming to my mind and I keep looking forward to such cases happening again because the excitements on those rare big gains are such a temptation. They just occupied my mind sometimes.

You can see my mind was struggling. I believe without writing this blog my next trading day is definitely going to be a disaster. Potential gain on stock trading is huge given that you can use whatever leverage you can use. However people seldom think about the opposite while they are enjoying a lucky surprise gain. A Trader like me is very easy to be tempt to achieve gain that exceeds the previous record. In order to do that excessive risk and leverage is taken and mistake is frequently made in such cases.

Again I have to remind myself my stock trading guidelines worked and I have exceeded my goal of half a percent today. Forget about the exciting part of the day and I already did very well.

This is last trading day of the month. I have downloaded the spread sheet that has all my trades for the month of May 2009 since I launched the blog. The gain for the month was $3,324. Percentage wise I believe I am better then Warren Buffet in this period of time. But I should forget about this gain and next Monday will be a fresh start.

Account Balance Change: +$278.77

Account Balance Change Month Ended May 2009: +$3,324

Related posts:

1. My Stock Trading Cost was Surprisingly High
2. The Starting Balance of Trading Account
3. How I Did so Far on My Trading?
4. I Caught a Falling Knife
5. Trading Out of Discipline and not Knowing How to Stop Caused Big Lost