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I made 30 trades in the month of February. (Yes, you read that right, 30 trades in 20 trading days.) I was just looking at my average fill prices for the month and I realized that I only have one loss.

All of the open positions I have right now are also in positive territory.

Improvements from the prior month:

1. I sold TWM for an average of $3.45 more than what I bought it for compared to the $2.24 difference in January. I also did it on 270 shares of TWM in February compared to 345 shares in January. Higher profit per share on fewer shares = higher trading efficiency.
2. I made 30 trades in February compared to 38 trades in January. Fewer trades = less money my broker makes.
3. Fewer stop outs. I stopped myself out within a dollar loss once in February. In January, I did it five times.

While it was a great month, I still need to work on a few things regarding my trading:

1. I need to have more patience for entry points. My average buy price during the month for TWM could easily have been under $79.50.
2. I shouldn’t jump ship so early. My average sell price during the month for TWM could easily have been over $84.50.
3. I need a more favorable risk/reward threshold for starting a trade. I should never have gotten into the QQQQ put trade or any of the RIMM put trades.
4. 30 trades a month is still too many.

Update: I never said this before, but when I say that I traded “one chunk of TWM” I mean 30 shares. I will not hold more than 90 shares of TWM at a given time because I want to have some spare cash for buying options and I would rather not dip into margin because my broker charges insane levels of interest if I do. Therefore trading a total of 270 shares of TWM during the month means that I went “all-in” three times. Looking at a chart of TWM in the month of February…

…and considering that my average buy price is $80.48 and my average sell price is $83.93, it’s difficult to imagine that things could have been any better.

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