Welcome to the second installment of the âCorallus Chronicles.â Quick Background: I have a cumulative total of two years of full-time active trading experience (in stocks and equity options) over the course of the last six years, but I am relatively new to the futures markets. Iâve been trading ES for two and a half months, and I am just now at the point where I am becoming mildly (emphasis on mildly) profitable. General Methodology: I am developing a trading style that seeks 1-4 high-quality trades a day. However, if nothing meets my criteria during a trading day, I have no problem with not placing any trades at all. Iâm going to be looking largely for divergences in Stochastics and/or MACD compared to price, preferably with confirmation in TICK and TRIN. Initial stops will generally be 3-4 points, depending on the situation. If a position moves in my favor by the amount of the initial stop, the stop will be moved to breakeven. From that point on, stops will then be trailed, or sometimes not trailed, using discretion. Profit targets will be set prior to any trade entry, and these target levels will often coincide with support, pivot, and resistance areas. Trades may also be closed out when technicals indicate that there is a high likelihood of the current trend reversing. For example, a bearish MACD divergence while holding a long, followed by the current uptrend being broken to the downside. I will continue to monitor 30-min range breakouts and late-day price surges relative to the price of ES at 1:30 EST, but trades made off of these, especially the latter, will be made within the context of the other technical considerations. This time around, I plan to include charts with commentary along with my End-of-Day reports, since, as they say, a pictureâs worth a thousand words!! My hope is that by posting a journal here on ET, I will be able to improve my trading skills by receiving feedback from others and by enforcing a higher level of discipline upon myself by making my trades public. Feel free to comment, criticize or just come along for the ride⦠Thanks, and good trading!!
I hope it will help you to review your trades later on, because as far as your readers are concerned, I believe that if they are intelligent enough they can understand what you talk about even without charts or they can consult their own charts if they care. I say this because if this turns out too time-consuming for you, you should not hesitate to scratch it.
5.5 points from the beginning of the journal (11/18) to the end of November. I didn't trade from 11/26-11/29 (sick days )
Two Trades today. Trade One: 30min breakout. Short 947, Exit 936.5, +10.5 points Trade two: Bought after being set up by three diferent bullish divergences (Stochastics, MACD, and TICK) between the price lows at 11:00 and 2:30. The trigger to enter the trade was a break upwards through the down trendline. Didn't quite pan out. Stopped, -3 points. I was a little late getting into this trade. Below is a chart of today's trades. 2 RTs +7.5 points
Great, some people were teasing me today about my 9 pts. As everyone can see it here, it was possible. I am glad you did not make it 'too simple'... Stick to what works as evidenced by empirical data of Natalie and Mike. Their method works.
I need to quit for the day. I've lost 14.5 points in 4 trades. Whipsawed out of each one in turn. It seems like everything I touch today turns to shit. I feel as though I could incite a rally in the S&P if I were to choose to short right now. Likewise, I could make the S&P drop off the edge of the cliff if I were to buy. I know I'm being unrealistic here, but that is how I'm feeling today. Like all traders, I've felt like this before, and the single best thing to do is stop for the day.
Db, I wish I had been more honest with myself when I said I was done for the day earlier. I ended up going back into the market, only to lose another 4.5 points!! Right now I'm convinced the CME is using my buy and sell orders to decide where to reverse ES. "Hey, look Corallus is selling, better make a rally appear out of nowhere, but just enough to trip his 4-point stop." I have a burning desire to get some of my money back, even just a little bit. This is the worst thought that could possibly cross my mind!!!!! That's it...the computer is getting shut off.