New Trades

Below is a list of my current paper trades. I entered these trades today at market open (other than the BA and QCOM contracts). I have contingent stops based on resistence for each. Some have provided better than expected gains already. The market was my friend today.



I must admit that I have already deviated from my trading rules for some of the above trades (1st step is realization and acknowledgment! – You cannot lie to yourself). If you look at the charts, you will notice that many of these stocks were way above the 30DMA. The common denominator for many of these is that they are indicating topping patters and severely overbought conditions. Stocks such as YHOO and LSS appear to be a trading pattern. I intend on riding them down to the support level.

I consider a number to be high risk, such as MLM and DVN, because they appear to be trading above the 30DMA and show signs of a possible reversal. I will need to monitor these more closely and tighten stops where appropriate.

Another thing to add to the mix is earnings season! Many of the stock on the list have their announcement in the next two weeks. More than likely, I will exit these trades prior to the announcement.

We will see how they go!

Thanks - David
_______________________

Lessons Learned - Trading Errors Kill Profits

Mixed up MSTR for another stock and exited prematurely – Lost 309 and missed out on the 10+point move and 2k profits – DAMMMMMMMMMMMMMM That trade alone would have recovered all my losses suffered last week trading the FED announcement!

Entered NYX instead of NXY – Don’t mix up the symbols. This time I was lucky, NYX is in a down trend, so I decided to keep!