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Trading today was pretty boring. The market gapped up 160 points within the first 2 minutes. As a day trader, it is a harder to make money when there are large price moves, as you can get caught in a trap. While I lost money today, I executed my rules, so that is my definition of a winning day.

 

The above day trading video is from my Quintana Maritime Limited (QMAR) short trade. I sold short 1,000 shares of QMAR at $24.50. Well this was clearly the wrong move. The stock initially acted properly and fell down to $24.36.

The above day trading video is from my Arkansas Best (ABFS) trade where I was able to utilize the 1-2-3 chart reversal pattern. The 1-2-3 chart reversal pattern was first published by Victor Sperandeo in the book Trader Vic. The 1-2-3 chart reversal pattern allows you to go counter to the primary trend after an unsuccessful test of the major swing high or low. This method allows traders who like to short tops and buy bottoms, do so with limited risk.

 

The below day trading video is from my Quintana Maritime Limited (QMAR) short trade. I sold short 1,000 shares of QMAR at $24.50. Well this was clearly the wrong move. The stock initially acted properly and fell down to $24.36. But the stock quickly began to slow up on the tape and reverse higher. I actually had this gut felling to close the trade and get long. But I hesitated, which cost me dearly. The stock not only reversed but it got above the $24.61 high, which was my stop level, and yet I did nothing. Not only did I not cover my short and go long, I just sat there like a pig waiting to be slaughtered. Then QMAR began to make a 7% up move in a matter of 5 seconds. Needless to say, I will make sure that I trust my trading instinct more. The painful thing about this trade, is that it was able to wipe away over 90% of my trading profits for the month.

The below day trading video is from my Omnivision Technologies (OVTI) short trade. I sold short 1,000 shares of OVTI at $12.66. OVTI broke a two day consolidation range with a sizeable gap in the morning. I saw good tape action when OVTI was able to clear the morning's swing low of $12.72.

The below day trading video is from my Archer-Daniels-Midland (ADM) long trade. I purchased 600 shares of ADM at $46.32. I saw good tape action when ADM was able to successfully clear its two-day high. I rode ADM pretty much too the high of the day and successfully exited the trade when she began to roll. I hope you enjoy the trading video.

The above video is from my STT long trade. STT setup a nice morning breakout, and I was able to eat most of the gains. Today I traded State Street Corp (STT), Monster Worldwide (MNST), WellCare Health Plans (WCG), and Yamana Gold Inc (AUY), for a total gain of $244.50. I shorted MNST at $28.92, but I covered it early, because I put on the WCG long trade and I felt I couldn't manage both positions properly. Unfortunately for me, MNST dropped about 5% by the end of the day, which would have been a huge profit. Overall, it was a good trading day, but I could have easily cleared $500 if I would have held my MNST short, and my WCG long.

Happy New Year everyone!!!