Added to SLB short

Decided to add into this up move to possibly get a headstart on the downmove.

Short SLB

Got into a short position in SLB as it moved up to the level from yesterday’s post.

Instead of moving below, most of the stocks from yesterday’s “watchlist” gapped up and tested the lows as support then rebounded strongly.

Trading Levels for Monday 11/7/11

MUR established some weakness on friday. If the stock opens below, or drives below this level and rises back to it, it will be a prime short candidate.

Ditto for SLB.

This is a controversial area for ILMN. Some possible scenarios include a rise to a double top for a short oppurtunity, a drive above for a long opp, or dreadful sideways action.

 

CREE also made some fairly obvious hints at future price action.

NFLX short (2)

I gotta take profits here after such a fast move.

Another NFLX trade

Just entered another short position in NFLX. I eliminated my mistake from earlier and let the stock roll over (fail at a level after hitting it) before I gpt in.

NFLX Trade Review

Pros:

Great entry near double top on two day chart.

Nice, tight .20 stop

Appropriate profit target of 1pt.

Perfect exit after volume surge down.

Cons:

I made a mistake on adding to the position. I should have waited for more of a roll over, perhaps at 2:20 where it makes a minor high, then fails to hold it.

NFLX cover

Boom. Covered NFLX short here for 1 point on 2 lots.

NFLX short (increased size)

Added to NFLX short after the action went my way. Looking for a volume dump now.

NFLX short

Shorting NFLX here.

My rational is the double top given the high yesterday. It will be really easy to find out if I’m wrong.

CECO long

I got stopped out at 6.98. looks like I had the right idea, but I should have jumped back in, especially after that volume spike down, right before the rebound. I’ve notice a lot of mini trends reverse whenever there is a large dump in shares.

CECO long

Adding into my position here, adjusted stop to 6.98

CECO Long

Here is a possible base in CECO

Trying a long at 7.01 after the level established itself earlier.

And stop out.

Going to analyze this later. I’m thinking I shouldnt have shorted this since it was against the trend and near HODs.

Trade Replay

55 is the level I’m trading.

I tried one short at 55 with a stop at 55.10, but I got stopped out. I watched the action and got back in at 55.12 with a stop at 55.17

I’m waiting for the stock to drop below 55 and then pop back up to add to the position.

I need to internalize this pattern, under over under.

doubled up in the short at 55.99

Waiting for volume surge down, stop out, or a big winner(50cents probably)

2011 Goals

It’s been a while since I’ve had a post that isn’t a chart, so here goes:

Real life has been knocking on my door for quite some time now and I’ve been prompted to focus on the big picture. After a lot of thought I’ve decided to go back to college to make myself more competitive for a legitimate prop trading position. I am 100% sure I want trading to be my career and there is no reason I shouldn’t be learning from the best instead of going about it on my own. I want to give myself the best odds for success, and prop firms have the best resources for that.

In order to accomplish this long term goal of mine, I need to go through some changes in my daily life starting this summer. I changed my major from Business Administration(finance concentration) to Mathematics to challenge myself. I used to think that since I was interested in trading, I’d be interested in business and finance. I was wrong, I hated it and it’s irrelevance destroyed my academic motivation. This time I around I have different expectations. I’m majoring in math because I’m genuinely interested regardless of it’s connection with trading. The fact that HFTs and algorithmic traders use math is just icing on the cake. I’m looking forward to pushing my limits.

I’ve enrolled fulltime in both summer sessions to make up for lost time. My days will be busy with studying and classes. It’s a little upsetting that I wont be able to trade as much but if I take classes now, I can free up more time during the fall to trader longer and more frequently. In the meantime I will still be reviewing the market after hours and posting trading levels for the upcoming session. I also plan on learning HTML, CSS, and basic video editing to revamp this website and use to for a teaching tool as well as a journal for my personal trades. I plan on returning to trading in September or October, when I’ve established a successful routine for classes.

I’m also saving up as much money as possible during the next couple of years in college. I’ve drastically decreased my living expenses by moving to a cheaper apartment. It’s also closer to campus and work so I’ll save money on gas. I can work less, and actually put away more money. I need to save up as much money as possible to cushion a possible unpaid internship or first year of work. I’d rather have the right door opening job than something that will pad the bank account.

To sum all of this up: during my time off from school I’ve learned that I need to make sacrifices in order to focus on the big picture, and work my ass off. It’s imperative that I lead a disciplined life because this is what needs to be done in order to become an elite performer and a successful trader.

If you’re a new reader, welcome and keep in touch. Feel free to ask me any questions @outlierdaytrading on twitter or ahabib2788@gmail.com