Saturday, March 27, 2010

Mar 22 - Mar 26 completed trades

4 profits, 3 losses- +0.04%
Average Profit - +2.07%
Average Loss - -2.75%

Total account up 10.48% YTD (after commissions)

Open Positions: NEP, MTG, FAZ, SDS (59% long, 38% short)

A couple of losses bigger in size than I usually "like" to have. No regrets as far as VXX is considered as it was a hedge position but I could certainly have played it better. But MGM was just bad stupid trading. If I have to pick a positive, it would be that I didn't let MGM, which I sold on Monday, affect the rest of my week and managed to recover from the losses. Hopefully, with MGM, I have managed to get the stupid out of my system for some time :).

I had hinted in the blog sometime earlier that I was thinking of making important changes in my trading style (see March 1-March 5 review) and I kind of started on that path this week. So, this might result in a little more than normal swings in my account in the next couple of weeks as I try to fine tune these changes. I will update you readers on the necessity for these changes and how I am dealing with getting out of my comfort zone in the near future.

I will be back tomorrow with my views on the market and some setups to watch out for next week.

Take care and enjoy the weekend!


1) The table shows only completed trades of the week. The positions that are still open will be accounted for in the week that I close them.
2) The YTD calculation includes the open positions. I just take my account value at end of Friday and calculate it. So, it also includes commissions which do matter a lot to a small account like mine.

Which other blog reports results after commissions? :)


Lee said...

Great blog, been following for a few months now. Simple-to the point-follow through. Awesome.

Now my post: Am long going into RINO which reports March 31 after market close. Chart looks like it wants to spring. Your thoughts or any interest in the stock?

positiontrader said...

Thanks for the encouraging words Lee!

I know nothing about the fundamentals of the stock, so have no clue on what kind of results it will report and how it will react to the results. So, the following is based based purely on my reading of the chart:

(1) Resistance at 26. It got rejected here earlier this month. This level was important even in Nov, so watch out for it.

(2) Support at 22 due to the price action in March and also MA(50). Next support level is 19.

(3) A possible head and shoulders formation developing this month. This will be completed if it breaks 22. That would be bearish and it could see 19 after that.

To sum it up, if I were thinking of going long this stock, I would wait for a break of 26. And if I were already in it, I would place a stop some distance below 22.

Just out of curiosity, what makes you think it wants to spring? Maybe I am missing something.

Lee said...

The up days since the 18.70 low on Feb 25th have been much higher than the down days and this has a tendency to move very quickly. Tute support is stronger this past 6 months. And expected beat on the streets. Oh yea, the huge short position is fuel....

positiontrader said...

If your expectations are on mark, you could expect a short squeeze before the results.

Agreed on the up volume since 18.70. Important that the low from last week holds though.

Good Luck! I hope it works for you.