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Author: CBaker100 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 36696  
Subject: One week Fledgling Trader's report Date: 3/25/2008 1:05 PM
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I promised I would let you guys know how it is going, so here it is. My major problem has been the lack of consistent internet access. Having moved into my new place and changed internet carriers, I lost internet service after 4 days and only had it off and on for the last 5 days. There were days I had service long enough to enter trades and not long enough to enter stops. Yesterday, I actually had to drive down to a neighbor's house and ask to use their wireless. I have called my old carrier and will hopefully have this rectified soon.

I've set up a spreadsheet that I update daily, tracking entry and exit dates and prices, stops, initial and current risk, and profit/loss. So far, I only have 14% of my money in the market, with half of that amount in long term investments and half in short term trades.

I've lost less than 1% in 11 trades. Three of those trades were profitable, three were losses, one was a wash, and four are still open.

Here are my mistakes/problems so far:

By far the worse mistake was removing the stop on one of my trades. As the current price approached my stop, I wanted this trade to work so much that I violated a major rule and removed the stop. It proceeded to drop, and I finally sold for my largest loss so far. Check that off the list, been there, done that learned my lesson, beat myself mercilessly.

Twice I have accidentally sold a stock, both times when I was trying to enter or raise a stop (I entered sell instead of stop). One of those "mistakes" turned out to be a fortunate gain; one was sold around break even, but I really wanted to hold it.

One of my trades was an extremely volatile stock, and I set my stop too close and was stopped out too soon.

I seem to be too afraid of losing gains, being tempted to take gains at the end of the day rather than risk news coming out after hours or before market open, and the price gapping down and triggering my stops. Day trading is not how I want to participate in the market. But I just don't trust this "bottom" in the market, and I haven't yet seen signs the market has reversed the downtrend. Emotionally, I haven't gotten too high with any of the profits, and I have only gotten down about the trade where I violated my own rules.

Continuing to learn and trying to keep the cost of tuition down.

CBaker100
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