Questrade, My direct access discount broker.

Questrade Democratic Pricing - 1 cent per share, $4.95 min / $9.95 max

Tuesday, January 27, 2009

January 27th

Bummer day today, just didn't make the trades but the day was a small target day all around. I tracked a few trades but didn't pull the trigger on any of them, didn'y feel like getting most of my profits eaten up by commissions for little return.

Having said that my few trades didn't do too bad. Every time I go through this process this month I have decided to not make the trade but jot down the planned entry and exits as if I were in.




0932h Buy $11.96 Sell $12.00 Gain 4 cents ps Return 0.3%
0935h Buy $11.93 Sell $12.04 Gain 11 cents ps Return 0.9%
1008h Buy $11.76 Sell $11.95 Gain 19 cents ps Return 1.6%
1111h Buy $11.95 Sell $11.99 Gain 4 cents ps Return 0.3%

$0.38 gain per share or 3.1% overall return on trades

Pretty small stuff but still all winning trades...and still $74 after commissions...1.85% return on the portfolio which is still over my 1% daily target

The last trade, although small, was a nice technical setup as I managed to write down the two possibilities:

"setup at 1/2S1 but the 200 4 cents higher - resistance - wait for

1) drop to S1 for entry

2) cross 200sma for entry"

It crossed the 200, I got in, watched for the waver and got out. A good trade in that it did what I expected off the bat, just did not follow through for a larger gain. The whole point here is that the exit is as important as the entry and both were executed according to plan. I could have held it through the pullback to $11.95 and subsequent rally but I MAY have gained another penny or two...and if I had held for the first pullback my mind is set on holding through so I would have ended up losing as the price plummeted to below my entry.

These days are only good for smaller targets so take the smaller profits when they arise and this will keep the losers at bay.

Ther is a cliche in trading that states, "cut the losers short and let the winners run". That is all fine and dandy but a cliche does not a plan make. Small churning markets are no place to try to let a trade run when there is profit on the table, too risky.

Jeff.





No comments:

Post a Comment