05-08-2014 Trading Journal

The market played a teasing game today.  It went up all morning and then came crashing back down in the afternoon.

SPY_Daily

While price as still in the trading range, the fact that price could not hold on to the top range meant the bear was pulling the bull back.  This back and forth b/w the bull and the bear is getting tiresome.  Not only that, it created plenty of whipsaws for my trading style.

If I had took short-term profits quickly for a day or two holding range, I would have been making quite a bit of money last two weeks.  Instead I witnessed profit vaporization the last two weeks ’cause I held them too long.  I held them for the purpose of a sustained rally which did not happen.

Today was a perfect example.  I had profit on $DDD early in the week but I held too long and today I had to bail at a losses simply ’cause I wasn’t paying attention to the price action. To make the matter worse, I added more $DDD in the morning which increase my losses a bit more by the time I got out.

I bought $GOGO looking for a bounce after the open.  I was doing ok until the turnaround in the afternoon which caused me to take a losses for half of my position.

Seems like the “falling” of the momo stocks is not over yet.

Today, $DMRC continued to head south and my port continued to take a hit. Together with losses from $GOGO and $DDD, my port dropped another 1.5%.  YTD gain is now 3%.  The three biggest draw-downs that brought my port down to 3% from 12% came from $DMRC, $LRAD and $SVBL which also happen to be my three largest positions in the port.  The irony is that these three stocks are mainly “event” stocks.

$DMRC: waiting for major retailers adoption of Digimarc barcode

$LRAD: waiting for military mega-orders of the long-range acoustic device or widespread adoption of their mass notification system.

$SVBL:waiting for a buy-out or a flight to precious metal mentality.

I’ve no idea if any of these events will take place but I know that if they do, I will win big, very big.

Thus, I’m willing to sit and wait and suffer the volatility that comes with it.

Current holdings:

DMRC, LRAD, SVBL, SEED, KGJI, GOGO and 25% cash.

From my other account:

Waiting for $FITX to announce result of Health Canada inspection.

My 2 cents.

 



Categories: Daily trading Journal

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