Phantasmix

A Word on Discipline

Phantasmix August 25th, 2008

Okay, 3 words: I lack it!

I’ve had this “master plan” for about 3 weeks now, but unfortunately don’t seem to have any patience and just can’t stick to the plan (more on that later).

Got mired in a lot of new trades the last couple of days. 7 active trading positions right now.

Let’s rationalize each one:

(SKF: 103.21 -2.48%) - still have 50% of the position. It closed at the high of the day. Will keep for now.
(LVS: 9.03 +6.49%) - low volume today, green on a red market day, but it was red on a very green Friday. Don’t understand the stock. Had a chance to get out this morning with a tiny profit, but held. Should cover this week.
(VLO: 25.43 +3.37%) - disappointing so far, but I have no problems with the fundamentals of this company, and believe it will go higher soon. Willing to hold until it gains.
(PLCE: 21.72 +1.64%) - 1/2 the normal volume today, end of day looks like short covering to me. I will hold this one until it fills the gap up from last week.
(MOS: 35.62 -5.44%) - new short. I have no conviction that I’m right here, but my position is very small (50x). Target $95-100.
(QLD: 29.77 +1.73%) - this one was scary, I bought it mid-day today, I believe close enough to the bottom of the day. Moneyflow is showing that today money’s leaving (QID: 51.562 -1.49%) (ultra short QQQQ) and is coming in to QLD. The ratio of buy/sells is 107/100. Last Friday SKF was being bought on weakness with the ratio 104/100 and look where it is today. Hopefully QLD will follow suit, however I realize it’s an extremely small sample, statistically Moneyflow is the one indicator I’ll keep track of from now on.
(JCP: 21.67 +0.70%) - had a chance to get out for a profit today, but convinced it has more downside. Should it go up tomorrow, I will not cover, want at least 2 points on it.

Ok, so the plan.

I want to exit at least 4 positions for a gain this week.
Must not rush into anything as I usually do.
Pick a stock (or ETF, *sigh*) and try to time an ideal entry, then go all in. I want more reward with less trading. I must be certain technically, so no this “no conviction” stuff.