New Trader Journal

[Travis Vayssie 13]

Interesting Day - Learned how i handled my biggest Loss.  (Stayed with me all day)

Good trades in the SIM and the open, then took two real trades.

1st - MOMO

Saw a 5 minute candle open above VWAP and went long with 100 shares @ 28.66, sold half @ 28.95, then it went down and i got stopped out at BE.

PL  (12.94)

Commissions (-1.18)

 

2nd - ROKU

Have been reading all weekend about the reversal strategy and figured i would give it a shot.

ROKU had a new 5 minute high and went long @ 90.72, stock went immediately down and i was stopped out @ 89.82

PL - (-90)

Commissions - (-.70)

 

Net PL (-77.06)

 

Loss Homework

Description of trade

ROKU – I saw roku had been going down with all red candles and decided to try a reversal.  Waited for the 5-minute candle to finish with a new high then bought 100 shares.  I set the stop loss below the wick of the last candle and was stopped out shortly after.

 

What you can learn

Wait for the 15-minute candle to have a new high on reversals.  Handle the loss better…by setting a tighter stop loss.  The trade should work out for you right away and if it doesn’t get out and take it again when you can find a better entry.

 

How you will improve the next day

Change the stop loss setting on the montage to a half a percent, wait for the 15-minute candle when doing a reversal and do not take the loss personal.  A loss means I am just that much closer to a W.

 

 

[Tommy 55]

Actually, I don’t think setting a tighter stop is the way to go for a smaller loss. From my experience what will happen is you will get stopped out a lot. So I think the better way is keep the same stop and with smaller share size, yes unfortunately this also results in a smaller profit... or try to get a better entry closer to the intended stop. 

[Travis Vayssie 13]

Do you base your share size off the risk?  Smaller risk would be higher share sizes?

[Tommy 55]

i do now yes, i just adjusted my hotkeys past weekend. so if i think a 20 cent stop is needed to be sure the trade is not working i press my 20c key, amount of shares is then based on how much you want to loose, so if you want to loose 50dollar, share size would be 50/0.2=250 shares for a stoploss of 1 dollar you get only 50 shares.

Edited May 29, 2019 by Tommy

[baracuda 8]

You're not the only one who made that mistake. I was long biased and for some reason was neglecting all the sign and indicators, trying to go for reversal multiple times.

As far as the stop loss goes for me personally it depends on 1) Quality of the setup, 2) price, 3) ATR, 4) daily max loss. I Usually try to set my stop loss on some significant level, HOD, LOD, VWAP, EMAs etc. That's the reason I don't have a hotkey for setting a specific dollar amount for a stop loss.

[Travis Vayssie 13]

Watched some of Andrews videos on the Reversal for a long position and I was off on my execution.  I waited for the 5M candle to make a new High, when I should have been looking for the 5M candle to not make a new low.  After reviewing the ROKU chart, that would have put me in a place to be successful.

[Travis Vayssie 13]

Traded two stocks today and had 1W and 1L.  Tried my luck again at the reversal and it didn't go down as i had thought it would, but I think the entry was good and I did have a chance to get out at BE when from the start it went against me.

 

1st Trade - GOOS

Bought 125 shares @ 35.81 once the 5M candle closed with no new low.  Went down right away, then back up giving me a chance to get out @ B/E but then back down and i was stopped out @ 38.07.

PL (-54.56)

Commission (- 1.04)

 

2nd  and 3rd Trade - ELTK

I saw that it couldn't get below the 9EMA and once the 5M candle opened above that was my queue to go Long.

Bought 125 shares @ 5.35 and got stopped out before I could adjust the stop @ 5.22.

Immediately purchased 125 shares @ 5.5 and quickly adjusted my stop to just below the prior 1 minute candle.  Stock went up and i sold half @ 6.18, then waited and for it to break 6.5, but it couldn't and sold the rest @ 6.19

PL (69.75)

Commission (-2.84)

Net PL (15.18)

 

Had a good afternoon in the SIM with going LONG once the 15M candle once it starts above VWAP.  Although just being able to go LONG is getting really old as I do have to really search for opportunities.  I have been adding funds to the account every week, so getting close to the 25K needed to day trade and open up margin.  

 

Edited May 29, 2019 by Travis Vayssie

[Travis Vayssie 13]

Just learning lessons over here today.

Great day on the SIM and the opposite on Live. 0-3

1st Trade - MOV

Bought 125 Shares @ 28.71, then immediately stopped out. (didnt pay attention to the spread and it was 40 cents, so as soon as i clicked buy I lost.) Lesson 1  Got back in @ 28.56 and placed my stop a little below the prior candle with a target of high of the day.  (Didn't pay attention to the 10 EMA just above my entry) Lesson 2  Then it shot down close to my stop, but went back up and could have sold off at B/E, but didn't and it went up and down for another 15 minutes until I finally sold at 28.90.  Lesson 3, I will learn this lesson on all 3 trades today (If it does't go my way from the start, just get out when it come back to B/E.  Move on with a small commission loss and find a better setup)

PL (-26.26) 2 trades

Net PL (-28.56) with Commissions

2nd Trade - ARMK

Stock popped up on my VWAP scanner and i went long as the 15M candle openned above VWAP. Set the stop for below VWAP and didn't have a clear or actually any target. Lesson 4 (Have a technical target)

Bought 125 Shares @ 34.38 and it went up a down for 30 minutes, giving me multiple times to get out at B/E "Lesson 3", then got stopped out @ 34.18

PL (-41.13)

Net PL (-42.25)

3rd Trade - ELTK

Bought 50 Shares @ 9.18 - I tried to predict that the next 15M candle would open above VWAP, it didn't.  Set my stop below the low of the last candle and a target of the 50SMA on the 5M chart.  But didn't take into consideration that the stock would have to go throgh the 9EMA and the 20EMA first. "Lesson 2" Then it went up and down for the next 30 minutes giving me multiple times to exit at B/E "Lesson 3", then got stopped out @ 8.82

PL (-23.50)

Net PL (-23.99)

 

Overall I feel good about the day, yes i didn't make money, but i had multiple opportunities to cut my losses into B/E.  Biggest take away from the day is don't predict, set realistic targets and if the trade doesn't go my way from the start and you have a change to get out at B/E - Get Out.  Also, don't mess with big spreads..brutal

 

[Travis Vayssie 13]

No trades today - went to make one but had not enough cash available.  Looks like it have to wait for the past trades to finish settling.  Have a good weekend.

[Travis Vayssie 13]

No trades today - i upgraded my IB account on Friday to a Margin account and made the additional deposit, so the account would be at 30K.  Tried to make a trade this morning, but got hit with the pattern day trading rule, so until my deposit clears on 6/6 I will be in the SIM.  

I was able to figure out how to setup my DAS desktop,  so i can now watch 3 stocks at a time.  3 screens/3 stocks to watch