I think what I'm doing is over trading. I'm finding opportunities that look good but don't perform. Or still, my time frame for holding a stock is way too short. I need to get over, over trading. Maybe I should try holding my stocks for a few days longer and see if my analysis of the stock will play out if it has time to grow, instead of forcing gains.
I also need to develop more strict guidelines for picking stocks. These are my current guide lines; stocks that have made new triple tops, stocks that are very close to support levels, stocks at least 250,000 shares. I need to fine tune this more to where I get to the point that I have a higher probability of the trade performing better than worse. Although I'm not worried about having a trade go sour, I'm worried about my probability of winning trades, which has gone down significantly over the last month or so. On the other hand, I have changed my trading plan since then.
Before, I was trading stocks purely based on trending channels of support/resistance. Buy low, sell high in this upward channel. In June and July this was fairly easy since we were in a great trending market. Things have changed and I haven't been able to spot any trades that looked like the ones I traded back in the early summer. That's probably when I started over trading. I felt I had to be in the market constantly to be make money. Which isn't the case as I have, ummm...7 losing trades now in a row.
This is all part of the learning process I guess. I'll need to keep fine tuning my system and myself as a trader if I want to be truly great.
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