Yes, that's right. 6 trades, 4 losers, 1 breakeven which is actually a loser less commision, and only one small win - stopped out for a small profit on a trailing stop.
So, what am I doing right? I am keeping my stops tight which keeps my losses small. I am generally being patient. I am recognizing opportunities.
What am I doing wrong? (Besides losing money). I am perhaps keeping stops too tight, certainly trailing them too tight, and I am not acting on opportunities.
How to correct the things I am doing wrong? More screen time and fewer interruptions during the day.
Wednesday, November 14, 2007
Friday, November 9, 2007
TRADING RULE #1: Anything Can Happen
TRADING RULE #1: Anything Can Happen
This is the number one rule. I keep reminding myself, yet I keep forgetting. Today the NQ opens lower and then proceeds to wave sideways to slightly higher throughout the day. I note that following a new low put in at around 11:10 am a series of slightly higher highs and higher lows proceeds, which defines an uptrend, but it is more sideways than up. A push to 2088.25 occurs at 3:25 and then the last 1/2 hour is straight down. Here is where I dropped the ball. Did not identify critical support zones that would have changed trend. Did not note that on the longterm chart price had touched a very longterm trendline and bounced off of it. So, new lows made... from highs to new lows in 30 minutes and a crap day stayed crappy. Stay alert, stay tuned in to support, resistance and identify the trend and remember..... anything can happen!
This is the number one rule. I keep reminding myself, yet I keep forgetting. Today the NQ opens lower and then proceeds to wave sideways to slightly higher throughout the day. I note that following a new low put in at around 11:10 am a series of slightly higher highs and higher lows proceeds, which defines an uptrend, but it is more sideways than up. A push to 2088.25 occurs at 3:25 and then the last 1/2 hour is straight down. Here is where I dropped the ball. Did not identify critical support zones that would have changed trend. Did not note that on the longterm chart price had touched a very longterm trendline and bounced off of it. So, new lows made... from highs to new lows in 30 minutes and a crap day stayed crappy. Stay alert, stay tuned in to support, resistance and identify the trend and remember..... anything can happen!
Sunday, November 4, 2007
Important points to remember
Critical points in trading:
Yes, psychologically it is hard but if you are looking for a high accuracy big winner small losing system I cannot give it to you. I still lose multiple times a day, just small. It does not bother me, it's part of how this stuff works.
Three,four,five losers who cares, when I really catch the ball they become a thing of the past.
Why do you think the failing percentage is so high in daytrading ?
Some might say lack of edge, some bad money management, etc etc.
Predominantly I think it's the very same psychology barrier you speak off.
Traders have absolutely no problem allowing losses to become bigger, possibly because they have to be right or cant' handle a small drawdown (what a concept) but as soon as something runs their way they are quick on the trigger to take profits and that's no way to beat this game.
and, Patience is extremely important, good trades don't pop every 30 seconds. If you find 3-4 in a day you are doing above average.
Anek
Yes, psychologically it is hard but if you are looking for a high accuracy big winner small losing system I cannot give it to you. I still lose multiple times a day, just small. It does not bother me, it's part of how this stuff works.
Three,four,five losers who cares, when I really catch the ball they become a thing of the past.
Why do you think the failing percentage is so high in daytrading ?
Some might say lack of edge, some bad money management, etc etc.
Predominantly I think it's the very same psychology barrier you speak off.
Traders have absolutely no problem allowing losses to become bigger, possibly because they have to be right or cant' handle a small drawdown (what a concept) but as soon as something runs their way they are quick on the trigger to take profits and that's no way to beat this game.
and, Patience is extremely important, good trades don't pop every 30 seconds. If you find 3-4 in a day you are doing above average.
Anek
Friday, November 2, 2007
Unenjoyment day
Without going into gory detail, I know what to do, I just don't seem to do it - at the right time. 0 for 3 today, at the end of the day recognizing the trend was up but not finding an entry point.
First trade, at 9:43 short at 2221.25. This was "almost" a great trade (sigh). Although I had already missed the double top at 2234.50 which was confirmed below 2224.75 I did sell the uptic and got stopped out very tightly at 2222.75 (high was 2223.75) so I would have needed a 2.75 pt stop to not get stopped out. This trade, intact, would have gone for 28 points. Oh well.
Second trade 12:09 short at 2206.25, sold what I thought was a break of support, market reacted spiking downward which allowed me to move my stop down and it got hit at 2206.5 for a loss of .25 tics. Breakout was false and market headed higher from there.
Third trade 3:17 short at 2216.50 selling against an earlier high, got stopped out 2218.25 as market headed higher.
Market had been in a downtrend from 1pm, and at least I recognized that downtrend was over and it would move higher into the close, but I could not find a good entry around 2222, and move down broke support at 2217.50 which scared me off. Low print was 2216.75 and we got our double top 2231 after the close.
Rearranged charts today. Keeping the 1500 volume bar off to the side. Making the big chart a low number tic chart (39 or so for NQ) which is all price action all the time, and including 5 minute and 15 minute bar charts which indicate trend. Also using a 10000 volume bar chart to keep track of bigger picture trend.
First trade, at 9:43 short at 2221.25. This was "almost" a great trade (sigh). Although I had already missed the double top at 2234.50 which was confirmed below 2224.75 I did sell the uptic and got stopped out very tightly at 2222.75 (high was 2223.75) so I would have needed a 2.75 pt stop to not get stopped out. This trade, intact, would have gone for 28 points. Oh well.
Second trade 12:09 short at 2206.25, sold what I thought was a break of support, market reacted spiking downward which allowed me to move my stop down and it got hit at 2206.5 for a loss of .25 tics. Breakout was false and market headed higher from there.
Third trade 3:17 short at 2216.50 selling against an earlier high, got stopped out 2218.25 as market headed higher.
Market had been in a downtrend from 1pm, and at least I recognized that downtrend was over and it would move higher into the close, but I could not find a good entry around 2222, and move down broke support at 2217.50 which scared me off. Low print was 2216.75 and we got our double top 2231 after the close.
Rearranged charts today. Keeping the 1500 volume bar off to the side. Making the big chart a low number tic chart (39 or so for NQ) which is all price action all the time, and including 5 minute and 15 minute bar charts which indicate trend. Also using a 10000 volume bar chart to keep track of bigger picture trend.
Thursday, November 1, 2007
Bad day for the market / bad day for me
Well, not a really horrible day for me, just more frustration in missing big moves. I was not totally focused today as I had to leave the house for a good part of the morning. Also, while the Dow and ES trended downwards, the NQ was sideways for much of the day. Unlike many other days I can't even do much "woulda shoulda" today because following my rules there were not too many missed trades. Only did one trade early for one small loss and then was reduced to an observer the rest of the day.
Interesting how I got shaken out of my extra SDS yesterday (although at least at a small profit - and the small QQQQ sale looked ok today). My experience was likely duplicated many thousands of times by others who were worried into the Fed action and then covered shorts or got rid of hedges later in the afternoon when the market appeared to be "OK." So now that everything looks dark and bearish we should have a bounce tomorrow..... unless it crashes! ES daily touched a newly formed trendline.
6D Tnote reversed sharply a TY closed up a full point at 111-00. Need to trade this system with a stop loss.
Interesting how I got shaken out of my extra SDS yesterday (although at least at a small profit - and the small QQQQ sale looked ok today). My experience was likely duplicated many thousands of times by others who were worried into the Fed action and then covered shorts or got rid of hedges later in the afternoon when the market appeared to be "OK." So now that everything looks dark and bearish we should have a bounce tomorrow..... unless it crashes! ES daily touched a newly formed trendline.
6D Tnote reversed sharply a TY closed up a full point at 111-00. Need to trade this system with a stop loss.
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