Awash's Journal

You are taking a planed approach to trading which is the one and only path to success. Keep up the good work Awash and continue to learn from your mistakes.

 

Today I just didn’t have the patience to wait and normally I don’t have a problem waiting for something to develop. Like usual, I missed a few good opportunities but I’m working on quicker entries without Hesitating too long.

Trade#1 – [Short 1026.25 9:50 EST & Cover 1026.50 9:56 EST] Early on the market showed a lot of downside potential and I went short but I realized some ECONOMIC NEWS was scheduled to release at 10am EST and decided to cover my short due to potential volatility. I didn’t know if the report was going to be bullish or bearish but at the time it wasn’t worth the risk, not to mention price was moving sideways before the release.

Trade#2 – [Short 1024.50 10:13 EST & Cover 1023 10:18 EST] This trade frustrated me because I was super late entering the market, I should’ve been in around 1025.50 after price broke my 1026 support level. After entering I prematurely closed the position and price trickled down to 1021. I generally don’t close positions quick but overall this trade turned out for the better.

Trade#3 – [Short 1027.50 11:43 EST & Cover 1027.25 12:02 EST] On my 1-minute chart I saw a lot of divergence brewing. I went short with good timing but didn’t want to wait the trade out. I prematurely covered my short. I was pissed especially considering price never broke through my 1028 pivot. Today was my impatient day for the month.

Trade#4 – [Long 1023.50 15:20 EST & Cover 1022.75 15:51 EST] Once again on my 1-minute chart I saw a lot of divergence brewing and price-indicator divergence has proven to be reliable for me thus far. Divergence strategies have been the backbone of my success, so I decided to go long after the ES came off a downtrend. This was a gusty long position but I didn’t want to second guess my indicators. However, price wiggled down to 1020.50 and pullback quickly. The reason this trade was bad was because it wasn’t consistent with my trading methodology. I’m not a reversal trader but put the trade on anyway.

 

I don’t have anything positive to say about today! Trade#3 was incredibly horrible considering price was in a massive downtrend. I took a trade against a major trend.

Trade#1 – [Long 1018.25 10:19 EST & Exit 1018.25 10:42 EST] Divergence was on my 1-minute chart but an avalanche of sell orders pushed the price through my support. I held it to see what would develop due to my indicators. See 1 minute chart: http://www.ttrader.com/mycharts/display.php?p=14907&u=aaronwash&a=Aaron's%20Charts&id=664

Trade#2 – [Short 1019.25 13:04 EST & Cover 1017.75 13:26 EST] The only thing bad about this trade was my premature exit.

Trade#3 – [Short 1027.50 11:43 EST & Cover 1027.25 12:02 EST] Overall horrible trade and wasn’t consistent with my system. I lost 3 index points on this trade and didn’t even close it. I just waited to it hit my stop. Please don’t ask me why I went long when price was in an obvious downtrend!!

For tomorrow: I’ll keep trying to enter the market with better timing and I will make sure I don’t have a repeat of Trade#3.

 

Yesterday's trade 1: I have some advice for you Awash...when you are in a losing trade the only indicator you should be looking at is the price....nothing else.....anything else is just rationalizaion. When you enter a trade you should have a specific number in mind where you will exit if the trade goes against you....This isn't news to you Awash....but there are NO exceptions to this rule. When the price hits reaches your number.....you get out...and you shouldn't care if you indicators are bullish as hell and you are long...you cover....because in the long run this is how you stay in the game. Remember you can always get back in. Cover and watch. If things turn back in your favor then its a new trade...with a fresh start and a fresh stop.

I notice that you decided to cover at break even...this signals to me that your ego is involved.....why is getting out at a break even so important....because then we don't have think we we're wrong....but don't think you are ever right or wrong trading...just make rules and follow them. I've actually learnt to become comfortable getting stopped out....because I know I made a good trade: I followed my rules.

I'd also be carefull using divergence signals because when the market starts trending....those signals will be telling you to fade the move....and whatever you've made in a congestion pattern you'll lose super fast in a trend.

No big deal....you'll do it again: rationalize a loser....I do it....we all do it....but the winners do it as little as possible. So just work towards eradicating that sort of behaviour from your trading.

Peace.

 

Not much trading activity from me today.

Trade#1 – [Short 1015.75 11:53 EST & Cover 1015.50 12:20 EST] Divergence was on my 1-minute chart but this trade never developed like I wanted it to.

Trade#2 – [Short 1018.75 14:20 EST & Cover 1019 14:39 EST] I saw the resistance building around 1019 plus a signal was generated, it just took a while to develop and I didn’t have the patience to hold my short. I was thinking about re-entering the market short but never did.

No more trading until Monday. Have a good weekend!

 

Stockfrosty,

Thanks for the constructive criticism and for continuously reading my journal. It has undoubtedly benefited me in numerous ways.

As to trade#1, I entered prematurely and didn't wait for divergence confirmation via my MACD indicator. Once I realized MACD diverged a few minutes later, I decided to hang with this trade.

I was recently corrected on a few trades that I took with divergence via price and one indicator only. I'll try not to make this error repeatedly as it will result in low percentage winning trades.

As to your response via divergence signals in TRENDS. I'm doing a meta-analysis now and i'll be able to speak intelligently about it in a few months. But thanks for your input.

 

I’m satisfied with my entries but I wasn’t able to keep my winnings on one trade because I didn’t cover it in a timely fashion. Really tight range but I was able to squeeze some profit out early on. Overall, I’m happy with my results today.

Trade#1 – [Short 1016.25 9:44 EST & Cover 1015.25 9:50 EST] Went short off a good double top pattern on my 1 minute chart. There proved to be some resistance around 1018. However, I covered this position quickly and priced moved downward a bit more to 1014.25. I missed one point but good trade early on.

Trade#2 – [Short 1017 10:17 EST & Cover 1016.75 10:31 EST] Good divergence signal on my 1-minute chart confirmed with both indicators. (Click: http://www.ttrader.com/mycharts/display.php?p=15013&u=aaronwash&a=Aaron\'s Charts&id=664) Entry was perfect but my exit was ugly. Six minutes later price dropped down to 1014.50 and I didn’t cover it. I was shooting for 3 index points but it didn’t follow through. I could have easily made 2 points. Next time I’ll keep my eye on the NQ contract simultaneously to see if price will sustain such a move. Better look next time!

For tomorrow: I’ll work on my overall trade management after entering a position.

 

Do you really plan to trade ahead of an FOMC release?????

 

Yes, there is a lot of movement in the ES & NQ this morning and I want to take advantage of a few good trades prior to the lunch hour.

 

Cool. so this will be more like a 1.50 pt scalp????



p.s. usually there is like no momentum of volume enough to get your trade off. do you really think you will be able to scalp this environment? And if you do when will you get out? because usually around 2:00pm EST the market starts to get REAL ugly!!

AND.......if the FED SHOCKS THE WORLD.....you could get your face ripped off!!!! I've seen the ES move 110 pts in less than 2 seconds! and the NQ can move 600 along with the Dow!!!!!

What then????

DUDE!......think this one through.