Author Archives: Stock Trade Journal

About Stock Trade Journal

The information in this blog is not investment advice. Please consult a financial advisor before investing. I have been trading stock since the 1990's and survived the .com crash. I am developing software applications to help me trade better and now I am making them available to help other traders. This blog is also a way to share my experiences and observations in the market.

Risk Management Pt 5

Posted on March 4, 2010 by Stock Trade Journal

In previous posts I talked about position sizes and Reward / Risk ratios as important aspects of any Risk Management methodology for traders. Today I am going to share with you how I use these concepts in my trading with a specific example. Continue reading →

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Risk Management Pt 4

Posted on March 3, 2010 by Stock Trade Journal

Managing risk in trading is all about keeping losses small and your winners big. In the previous post I talked about how to calculate Reward : Risk in a trade and that the aim is to only enter trades that offer at least 3:1. In other words aiming for gains that are at least three times the losses. I (in the first post) also talked about parameters to choose your position sizes according to skill level (proven edge), trading capital and type of account. Next is to determine the number of shares for a new position. Continue reading →

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Risk Management Pt 3

Posted on March 2, 2010 by Stock Trade Journal

Last post explored how a trader can evaluate his edge by implementing an analysis methodology and routine. I talked about the importance of having a large winner vs loser ratio both in profits and frequency. In other words a good … Continue reading →

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Risk Management Pt 2

Posted on March 2, 2010 by Stock Trade Journal

In the previous post I talked about the different variables in play to determine a good risk management model and technique. One of the variables was the trader’s edge. Continue reading →

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Risk Management Pt1

Posted on March 2, 2010 by Stock Trade Journal

Risk management is probably the most important strategy traders need to implement. I have read many books and blogs on trading where a simple 2% risk rule is advocated, but I have found that it doesn’t work for me. First, … Continue reading →

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February's Performance Analysis

Posted on March 1, 2010 by Stock Trade Journal

This month I tried to tackle over trading. I decided to limit to 5 the number of trades I could enter in a week. Not necessarily one trade per day, but 5 trades per week. Check out the performance graph and stats below. Continue reading →

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Don't Panic!

Posted on February 19, 2010 by Stock Trade Journal

Fear is probably a trader’s worst enemy. I know I am constantly fighting the fear of loosing opportunity when a stock I monitor is moving higher quickly, or that I am going to lose big on a gap the next day. A check list can help you control that feeling and allow you to make objective decisions in critical situations. Continue reading →

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Failed Shorts

Posted on February 13, 2010 by Stock Trade Journal

Last week I run a scan for stocks over $5, trading at least 500k shares per day on average and that were trading below their 20, 50 and 200 DMAs. I was looking for short setups as the market was in a down trend. I also run a similar scan looking for stocks trading above the 20, 50 and 200 DMAs for potential long trades. Continue reading →

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Performance Analysis

Posted on January 29, 2010 by Stock Trade Journal

At the end of every month I take a look at my journal entries and analyse my trading performance. This month my performance was poor. The main reason was that I failed to sell short. I noted in my journal both last week and the week before that selling short was clearly the trade but failed to do so. Continue reading →

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Moving Averages, Crossing and Other Observations.

Posted on January 24, 2010 by Stock Trade Journal

Many stocks I monitor that had been trading above their 20 and 50 DMAs are now trading below these averages. Also, I am seeing these two averages cross on some charts. Since the price actions is below these averages, the odds that they will serve as resistance is high in my opinion. Continue reading →

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