PTR surprised me. It had gapped up two days in a row, and still did not close the gap. I got stopped out and learned a valuable (and fortunately not too expensive) lesson. Here’s the setup:

I shorted PTR and set my stop-loss at about 1/4 of an ATR above my entry, (about 25 cents). The trade went a little ways in my favor, then turned around and went against me. I watched it HIT my stop-loss point, but no trade was triggered. “WTF?”, I think. Then I check my stop-loss. It was a DOLLAR higher than I had intended. The market was moving fast, and I was doing my best deer-in-the-headlights imitation. The end of the story is that I got stopped at the higher point and had a 5R loss rather than my planned 1R. That’s the bad news. The good news is that I took DR Barton’s suggestion and have been playing very small positions till I get the hang of it, so I only lost about $70, but…

…if I had been position sizing as I intended to, that would have been a $5000 loss. Yikes!

Moral of the story is to make sure I understand my platform defaults. Traders Workspace, which I use, defaults an offsetting trade to a dollar difference. I simply failed to check the actual price I entered. Hopefully I won’t make that mistake again.

I had hoped to trade CROX this morning as it had gapped overnight. I was planning to short it at the open, but it took off in the opposite direction. In fact, it was so fast it awed me. I know I’m new to this game, and perhaps what I saw this morning was just SOP, but I could not believe how fast this price swung. It opened on a gap of about a dollar, immediately rocketed up another buck, came back down about a buck and a half, and went back up above the open, all in the first five minutes. I assume some day I will be confident enough in my decision making and execution skills that I can make money on something like that, but this morning it looked like a rampaging flood that I was not interested in trying to wade through.

Shorted ACH on a gap this morning and got stopped out at 1R. It wasn’t a great trade, but it was the best I saw this morning.

Question: Did any of you guys ever get DR’s “basket of stocks” he promised us?

4 thoughts on “”

  1. I have not seen the basket of stocks. I was going to contact IITM tomorrow and ask.

    I too have been dabling in the morning with trading using small lot (100 shrs) and I am slightly less than break even. I am practicing on the OCO/OSO orders.

    You are correct, you get into the high volume well known stocks and they move.

    dwight

  2. OCO/OSO is on my list of things to practice, but I’m not there yet. Right now I setup my entry, my stop loss and (if applicable) my profit exit in three separate moves. Then I execute each of them sequentially. Not the most elegant thing in the world, but at least it gets my stops submitted.

  3. I’m still looking for the basket as well. For a platform, I looked at Tradestation. 100 bucks a month looks expensive to me and I’m not sure I would do 5,000 shares a month.

  4. I just called IITM and talked with Kathy. She said D.R. called and asked for our email addresses and thinks that is what he is upto. If we don’t get anything by the end of the week I will call back.

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