I believe many people have very similar ideas independently. Sometimes they are really very simple. I will have to see this book, I'm interested in the implementation of the idea, because when it comes to discretionary ideas the implementation (how you use it) seems to be as important as the idea itself. Discretionary ideas leave a lot of room for artistic creativity AKA account depletion. Someone once told me that if more than one person has the same idea than it is not a good idea. Perhaps...
Actually I do not yet own the book. I only read an interview that Innerworth.com conducted with him. Innerworth.com is a subscription-based trader psychology web site, and their content is copyrighted, so I am not sure if I would be allowed to post specific technical info from that interview. Also, I kind of want to steer this thread away from "guru worship", especially since I honestly do not know if his methods really work. I, however, plan to practice for a few weeks using a simulator to see if I can make it work for myself. Anyway, if you're interested, you can buy the book at Amazon: It's called "The Way of the Warrior Trader" I'm probably going to order it soon because I like the guy's ideas and philosophy. Again, I don't know what the content of the book is exactly, but I would assume that he covers the specifics of his scalping techniques in at least as much detail as he did in the interview.
I own the book. He does not cover any specific techniques at all. The book trains you to look at the market a different way. Thru the eyes of a warrior. He is a master/trainer in several of the Japanese martial arts, and he looks at the markets thru those eyes. If you are looking for setups and exits, don't buy the book, you will be dissappointed. If you are looking to change some things within you (fear, greed, etc), get the book. BTW, great journal. H
Yep. Planning on going live again real soon, but not sure if I'm gonna pick the journal back up. Been working on reading price action, discipline, and not cutting off my winners. Thanks for asking traderkay. Good trading to you. H
Futures began the session with a down move of about 3 pts. At 9:47 there was a 5m PSAR cross that indicated a long position at 930. This was confirmed by 5m SST (OS) and MACDh (crossed the zero line). Got as high as 937 w/in 30 minutes. The existing home sales number at 10:00 contributed slightly to this run-up. I hesitated, though, and didn't take this trade b/c the price had run away from me. At 10:47 there was another 5m PSAR cross, this time indicating a short at 935, which was also the R1. Simultaneously, TRIN was just starting to bounce up off of the lower BB on the 5m and TICK was dropping. 5m SST was overbought and its lines had just crossed as well. ES dropped nearly 7 points down to 928.25 w/in 30 minutes. ES continued to sell off, getting down to 923.25. Didn't take this trade either for some reason. Just watched it all the way down, thinking, "Damn, I should have taken that trade." Am I paralyzing myself with too much information, too many indicators? Perhaps. Now that we were trading around the area of primary support, I started looking for a potential reason to buy in the area of 925. Finally, I found my reason in the form of a bullish TICK divergence between the 12:00 low and the 12:30 low on the 5m chart. It was by no means a major divergence, but in my mind it was a good enough reason to take a stab at S1. Went long at 924.5. After a long wait, the price started to improve slightly. At 1:26 the cash index hit the upper BB and I started to get a little uncomfortable, so I moved my stop to breakeven. I thought to myself that if this trade was not to be, then let me get stopped out at my entry price. Was targeting the pivot at 931. Got a little impatient, though, and sold at 927.25 for a gain of 2.75 pts. Price eventually went on to hit my intended target. Note to self: Need to become more comfortable with sitting tight on a breakeven stop and letting the market work for me. At 2:10 I tried to impose my own will on the market and entered again on the long side at 930.25. There was no real reason behind this trade outside of a nagging feeling that there was upside momentum to this market and we would get back to 936. I remained in this trade until 2:24 when I exited because there was a lack of any price advance. Gained a single tick on this one. Overall, I'm pleased with today's results, but I wish I had had more balls in the morning. I recognized two good setups in the morning, but I fell prey to hesitation. 2 RTs +3.0 pts
You are recognizing patterns well, don't worry about too many indicators, there are really not so many of them (TRIN and TICK, stochastics, perhpas MACD which usually does not add anything new), plus you are trading only 3 setups. Or perhaps as many as 3. On some days 3 setups can be a lot. Good day.
Probably because of all the indicators. When you're looking at all that you're looking at, plus TICK and TRIN, you're bound to get conflicting signals. When you get conflicting signals, you hesitate, and before you know it, the trade is gone. Figure out what's working for you through your EOD chart review and what is only making you unsure of yourself. You may find that the price bar, along with what you know of support and resistance, is enough. --Db