I’m still here! I realize posts from the last week or so haven’t been as personal as I would like. Between being sick, a potential part-time job, the market humbling me (180% profit to 15% in the red), and a general shift in trading rules and theory, I’ve been partly bummed. I’ve actually been in cash for about a week now only taking a quick nibble earlier today. Confidence is definitely rattled but it’s been tough staying away from the game. I’m also in the process of switching brokerage platforms. While Zecco has treated me well, ThinkorSwim appears to be better suited (and cheaper) for my options trading needs. I’ve also begun to break away from the Mad Money / Cramer mindset. While the show and his books help teach some fundamentals, the market doesn’t work on fundamentals alone. Rather, the more I analyze things, the more I’ve realized that technicals could have secured my profits weeks ago.
Here’s my plan of attack for the coming weeks:
- Change platforms from Zecco to ThinkorSwim
- Fundamental shift from fundamentals to technicals
- Spend less time on Stockpickr and shift time to OptionAddict
- Begin reading and learning the technicals of the market
- Hopefully land the part time job (more to come)
- Continue ETF series (large interest it appears)
Quite a bit on the investing platter but I think this may be for the best. As I complete the tasks above, you all will be the first to know.
Be careful with the bounce today. If this truly is the bottom, expect DJIA 13,600. If we collapse back under 13,000, all bets are off as to when the bottom appears.
I still use Zecco – never heard of this think or swim. do they offer free trades too.
Comment by aj the accountant — Tuesday, November 13, 2007 @ 12:59 pm
ThinkorSwim is specialized more for options trading I think. In terms of options pricing, they’ll match almost any other broker’s pricing. They have a great software platform that’s extremely responsive. Over the next month or so I’m leaving Zecco for TOS and saving about $3 per options trade since I only trade a couple of contracts at a time.
Comment by Jorge — Tuesday, November 13, 2007 @ 1:51 pm
Sorry to hear that things aren’t going well Jorge. Trading technically is an excellent choice. Let me know if I can help.
Comment by Jonathan — Wednesday, November 14, 2007 @ 7:52 pm
Ouch! Up 180% to now down 15%? My sincere condolences. I went through a similar situation when I first got into the stock market and I was trading penny stocks (I can’t believe how foolish I was looking back). It’s the main reason I switched my stock market strategy and went for investing in major stocks.
Comment by The Investor's Journal — Thursday, November 15, 2007 @ 2:49 am
Thanks. I just picked up Murphy’s TA book. Should be here soon. To be honest, I’d rather have this happen now while I’m still new at the game than later when I have a larger amount of capital on the line. I knew this was coming but it still stings hah.
Comment by Jorge — Thursday, November 15, 2007 @ 4:14 am
On a percentage basis it’s huge, but I barely have enough to open a margin account. That being said, I read somewhere that a bull market makes you feel lucky while a bear market makes you pay. While I don’t think we’re in a bear market, we did hit a rough patch. My luck ran out. Live and learn from your mistakes though.
Comment by Jorge — Thursday, November 15, 2007 @ 4:16 am