Just don't seem to get any short momo here. Can't take out Tuesdays low or this 65 region. I was expecting 64 to be strong support but damn.
I think that RSI is most useful when the price hits a high and RSI peaks lower, or hits a low and it peaks higher. Especially if it hits a previous low/high, it seems like this could indicate bullish/bearish pressure that may be less clearly visible from the price alone. I haven't paid much attention to indicators since many people on ET bash them, but looking back I constantly see places where they could have made fairly ambiguous P/A seem much more clear. All the same I'd say that indicators must be used to support PA analysis, not the reverse... I'm short again at 68.5... and stopped
Damn bulls made me give up 5 points there. Crazy not to take gains at the bounce of the 55 key level. Ah well onto the next one. Stopped out at even. Good call Specx.
I have to leave for rest of day. I might if i am lucky make it back in an hour if not here are the stats for the day. 6x6 ES traded Net: 4.5ES points $192.20 Leaving a short here at 73 and leaving. Good trading to all.
I'm back to see my 2 point stop was missed on 3 separate occasions - you can't get much luckier than that. I guess karma has come around to help me this time This is more of a balanced day so i am trailing this to bank some gains on this. Not a bad day now.
I am out of this at 68 for +5 Done for the day. New net is: 7x7 ES traded. 9.5 ES points. PnL: $437.40 Made back a chunk of yesterdays losses. Still i am not very happy with the trading today. Held on to short bias throughout the day and should have taken some gains earlier on a few trades. Was not much of trend following taking place from 11:30 to 15:00 which worries me somewhat. I have to stick to the plan and eliminate all impulse trades. Will work on some analysis tonight as i am getting a bit sloppy missing key things today. Basically 2 trades netted me all my gains for the day. Only works when the markets are kind. Good trading to all who are reading.
Can you post your charts in the morning for todays action if you get a chance. I'd like to see you continue with the journal for some time to come. I'd say your bottom line has improved since starting. It definitely helps any trader to start a journal to post their charts with entry & exit points. Helps keep you disciplined, helps keep you in emotional control while trading and forces you to stick to your trading plan. keep up the good work.
From Successful Anonymous Trader: "You simply cannot have any confidence if you do not have a method or way of identifying trades along with money management guidelines. You're lost in the woods, so to speak. I was there for many years. What did I do? This may help a lot of you: I threw out 99% of all the crap I learned about oscillators, divergences, Elliott Wave, cycles, timing, seasonals, Gann, pitchforks, volume, Fractals, RSI, stochastics, overbought/oversold (this is a good one--the stock indexes, currencies and cotton for example everyone said were overbought and topping in February and March this year). Look at what they did. Needless to say, I don't pay any attention to this anymore either, etc., etc. The list goes on to infinity almost. I went back to the basics. I went back to simple chart patterns, (a simple moving average and trendline now and then for a visual aid.) I came up with a low risk money management plan and put it together with trading with the trend and, presto, an effective and time tested trading plan. The plan is simple and has worked since trading began and will last me a lifetime. What a relief not to have to spend countless hours every night trying to find a new way to trade. I am sick and tired of that after 7-years. I believe at becoming an expert at one stock or market and its behavior and then putting all your skills and energy to work in a concen(traded) manner. Get good at that market and trade the heck out of it. Increase your size over time and you'll make more money with less effort. There are lots of professionals that do this. Look at some floor traders or locals that stay in the pit for many years trading one market exclusively. One thing that I have learned this year, is that I am trying to cut back on the number of trades I take and be more selective and not trade in congestion as much as I did before. I miss some good trades out of congestion, but I save myself a lot of mental energy, buy myself some more free time during the day, and get better and more profitable trades. My attitude is changing now to one or two good trades, and that is all I need to make my week ( a triple or a home run, so to speak). There are plenty of them during any given week. Trading is fun. Once you have a method and money management in place, it allows you to concentrate on trading and not on searching and researching. That gets old and frustrating. Make it your goal to find a simple method for next year. One thing that you can hang your hat on will last you a lifetime. Trading is simple. Remember that it's the Execution or Implementation of your trading plan that is the bigger challenge. Most people make finding the method a big challenge. That is because there is so much junk thrown at traders. They feel like a child in a candy store and have to try every doodad in the place. When they are done, they are sick and never want to see another candy store (trading gizmo) again. They could have had the plain piece of milk chocolate at the front of the store (simple method price patterns) which would have done everything they desired and fulfilled all their needs. I wish to all a great new year. I hope some will be able to end their journey in search of the holy grail or indicator that will turn their life around. Search for simplicity. You will be surprised what has been right under your nose all the time, right there in front of you on the chart or price bars. Pay attention to what they say...they will tell you everything. You need to listen and get to know them. It can be that simple. "
Oh so true. Great post and worth of a repost! But the problem is 10yrs ago, heck probably 3 yrs ago I did not really believe that. In this business it seems rather difficult to learn from others mistakes. Now the chart has a 20 ema and volume. And volume only tells me when the bar is about to close. We now return you to your regularly scheduled program!!
Hey thanks mate - i feel i am doing better but still many impulse trades are creeping in which is a bad sign. Here is yesterday's chart;