April 7, 2008

Net: $95
LFT: 0
DD: $22
Trades: 37
Shares: 4200
Frame of Mind: Neutral

First trade UBS, shorted it a bit late at $35.11. Swift was having problems with their system during the open, the usual. It didn’t touch the 1EMA21 before it reversed course. I initially planned on cutting at $35.40, but then I felt it was gonna hit it easily so I cut early. The high was $35.39. Market’s truly amazing.

ubs-040708.png

I was planning to buy AA at $38.30 since I thought it was too late to short .40 because there was support from the previous days, and it was nearing lunch. I didn’t put in an order and when it hit .30 it bounced immediately to .49, where I went long. That was the top.

It came back to .33, where I cut.  Then I decided it might be a bottom when I saw the ‘pitik’ to the upside so I bought at .35 200 shares. Took the first 100 WAY too early considering I was betting on a bottom reversal. I had played it too conservatively because I was up only a little at this point.

aa-040708.png

Shorted DD $49.64, following the downtrend, seeing that it was below 5EMA21 and 15EMA21, I have friends on the short side. Not bad considering an initial risk of $3 netted me $44.A was another short on the downtrend, which netted me $54. Catching the bottom reversal on it based from tape action and S/R helped.

dd-040708.png

What I did wrong:

  • I did not maximize my reversal trade on AA.
  • I did not observe discipline on UBS, had cut early.
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