Corallus Chronicles, ES Journal

Discussion in 'Journals' started by Corallus, Nov 16, 2002.

  1. dbphoenix


    I wouldn't call it an art. More a matter of practice. I do maintain a collection of charts from daily to 1m to give me some idea of where we are (in the NQ) so that I'm not thrown by the hesitation one usually finds at important S/R. And I don't enter before 1000 if there's a report coming out at that time. But, otherwise, I pay no attention at all to "events", don't watch Squawk Box, don't watch CNBC at all, don't have a news feed or consult any of the news sites. I just pay attention to price.

    Maintaining discipline is difficult enough without having to deal with the pummelling from this news or that rumor. If I accept the fact that price can go either way - or nowhere - on any given day, I can then deal with whatever price decides to do. Otherwise, I'd be fighting with the market all day.

    #51     Nov 20, 2002
  2. This time, but sometimes it's different. To make big money, you need to catch a major trend. They do not always start in the morning or in the afternoon, sometimes they start around 12:25 EST, during the lunch time. That was my point.
    #52     Nov 20, 2002
  3. dbphoenix


    This time and most times. Trends can begin during midday, but they begin far more often outside the lunch hour. Unless one wants to sit in front of the computer all day, it pays to play those trends which begin in the morning. If there's a reversal later on, so much the better, but reversals haven't been terribly clean lately.

    #53     Nov 20, 2002
  4. Today’s Trades (P/L expressed in terms of total contracts traded)

    ESZ2;BOT;2; 919.00; 08:54:02;20021121;GLOBEX
    ESZ2;SLD;1; 919.50; 08:56:15;20021121;GLOBEX
    ESZ2;SLD;1; 919.50; 08:56:15;20021121;GLOBEX +1.0

    ESZ2;SLD;1; 926.50; 15:47:58;20021121;GLOBEX
    ESZ2;BOT;1; 928.25; 15:51:49;20021121;GLOBEX -1.75

    ESZ2;SLD;1 931.25; 18:07:21;20021121;GLOBEX
    ESZ2;BOT;1; 934.00; 18:26:08;20021121;GLOBEX -2.75

    ESZ2;SLD;1; 929.50; 19:20:04;20021121;GLOBEX
    ESZ2;SLD;1; 929.50; 19:20:04;20021121;GLOBEX
    ESZ2;BOT;2; 930.50; 19:26:56;20021121;GLOBEX -2.0

    ESZ2;BOT;2; 931.50; 19:36:33;20021121;GLOBEX
    ESZ2;SLD;2; 933.50; 19:51:36;20021121;GLOBEX +4.0

    ESZ2;BOT;1; 930.50; 20:36:36;20021121;GLOBEX
    ESZ2;SLD;1; 931.50; 20:38:52;20021121;GLOBEX +1.0

    Note: Listed times are 5 hours ahead of EST.

    6 RTs
    -0.50 pts

    My commissions were a bigger expense than my market losses today.

    I have to leave right now. I’ll come back later tonight to discuss today’s trading.

    #54     Nov 21, 2002
  5. Aaron


    Busy day today, Corallus! Looking forward to your commentary...
    #55     Nov 21, 2002
  6. dbphoenix


    Ditto. I'll be interested in hearing why you traded so much.

    #56     Nov 21, 2002
  7. Good point, I was about to raise it too.
    #57     Nov 21, 2002
  8. Journal Entry - 1:20 AM EST

    Why did I trade so much today? Glad you asked.

    Although I characteristically only take 1 to 3 trades a day on average, today I was trying out a few things. More about that later.

    The first trade was a night scalp executed at 3:54 am EST. I had serious insomnia last night. I logged into my IB account to see where the futures were trading. Every so often I do a night scalp or two, taking advantage of the wide spreads in ES during the nighttime session. Yes, I know there is risk involved with doing this since there is very limited liquidity during these hours. However, if you observe a price range that ES keeps bouncing up and down between, such as 919, 919.5, 919, 919.5, etc. for hours on end, then it is not exceptionally hard to buy at the bid at 919 and immediately put your contracts for sale at the ask at 919.5. That’s what I did and I was only in for 2 minutes and 13 seconds. I’ve done this kind of trade maybe 10-12 times over the course of the last two months and I’ve only lost money on it once. Now, this is not something I do every night, just sort of something to do for entertainment purposes when I can’t sleep. Please realize I that I’m cognizant of the risk of this kind of trade. Believe me, I’ve seen the futures dip or rise 5 points in 10 seconds flat during the night session. The Nikkei crashes over in Japan, the S&P takes a nosedive, etc, etc.

    Of course, in my absolutely perfect 20/20 hindsight, it would have been dandy to have just held onto those 2 contracts all through the night and all through the regular trading session. Hell, I could have put in a simulated stop with my trading software before I went to bed, slept in till noon, and spent all day playing golf, exiting with a MOC order. That would have been a way to do it barring any IB disconnect or my computer crashing. Instead I opted to do things the hard way :)

    Sorry for all the rambling. As I’m writing this message, I’m on a prescription sleeping pill called Ambien and it makes me feel kind of goofy. It sort of has a bizzarro psychotropic effect. In addition, it’s late and I’m really tired.

    Anyway, the second trade was an attempt to sell the primary resistance area. I was willing to take a chance on this counter-trend trade, but seeing the strength of the market, I was not willing to give it a long leash. I decided to grant it only a tight 2-point stop, with the additional qualification that I would stop and reverse if my stop was hit and the market broke through the R1 level. Well, my stop was indeed hit. However, right when I was going to establish a long position at 929, my IB market feed went dead. Man was I pissed!! Literally, at the moment I was going to press the buy button, my quotes stopped. At least I was flat when the outage occurred. It would have sucked to have been stuck short when the feed went out.

    Well, tell you what, I’m going to have to continue this tirade tomorrow, as I’m dog tired and I needs me sleep!!!!!!!!
    #58     Nov 22, 2002
  9. Aaron


    Is trading keeping you awake at night, Corallus? Is there a way you can set it aside in the evening so you can relax?
    #59     Nov 22, 2002
  10. Actually, I've always suffered from insomnia. Even before I was a trader.

    I appreciate your concern though, Aaron.

    #60     Nov 22, 2002