Friday, February 01, 2008

Notes on this week's trading and trading calls

Lots of day trading this week, while I made some decent profit, the amount of money I left on the table, or should I say the hopelessly poor execution, really makes me sick. Case in point, I shorted BIDU near 292 Friday AH after I spotted signs of distribution in both YHOO and BIDU following the big MSFT bid news, and was pretty sure that BIDU would be dragged down by GOOG to at least test 270. Then, after about 20 min of waiting during which it was range bound, I covered near 285 and thinking to get back in near 288. Such cheap behavior was promptly punished -- right after I covered, it broke down and went to as low of 262.4. So I made like 6 points, but that is a lot less than what I could've or should've made. See the problem here?! Something has to be done, I will probably stop trading (at least DT as razor suggested) for a few weeks to do some soul searching, just cannot keep going like this!

Feeling tired so I am going to be brief on my last weekend's weekly calls: for 24 calls on 15 stocks, there are 2 winning calls (WFR for 6 points and X for 10 points) and 1 losing call (DRYS for 1-2 points), with overwhelming non-hits. Obviously I over estimated the range of swing in terms of the market reaction to FOMC decision and Dec. job report.

3 comments:

razor said...

The big guys are in, especially beat up financials, now that lending has eased and the bond insurers are backed I need to own a bank...most are overbought except C but that has dogged me before, wish i had cof so will pray for a pullback...anyway my strategy is to have a few core investments and sw a little on top.

razor said...

I need to add the horrible .6 gdp growth and horrible job report show underlying weakness in the economy so i will steer clear of consumer type stocks (thats why i will sleep good with rtn,gov backed) and I'm really suprised the market didn't sell off yesterday....

flyingwabbit said...

razor:
doesn't look like you have any hangover this Saturday morning and I like your reasoning. will start the weekend analysis shortly.