Eccks that's a lot of reading, want to take this over to my thread in the Journals ?? Averaging down wise, was the main thing that turned my $700 into $10,000 it's just not working in the current market conditions, it's never that easy, it's never black and white it's always a shade of grey somewhere between the 2. Can I repeat tomorrow, find out Monday I expect I should be able to, but I will need to be in a playful kinda mood, just playing a game after all And I'm human, not a robot so I don't go into those depths of analysis, momentum is the only long term edge, start at the quickest ie immediate momentum and work outward.
Review. 10NOV2014 Trade #1: +3.75 1. Sold at a SL PB. 4155. 2. 4159. A breach of the SL. 3. 4146, pre mkt swing low, or breach of SL. Notes: Saw weakness and decided to exit in order to book some profit. After exiting very large bull bar retraced entire move. ALmost. Trade #2: -2.75 I didn't make a plan for this move, I just thought "continuation". The supply line broke and I should have been looking for a long PB. Lack of focus and discipline with my plan. Stopped out, rightfully so. Wasn't upset about it. Trade #3: +4.25 1. Perfect Pull back after SL broke. Long at 4155.5 2. Initial stop 4153, which would breach DL 3. Supply Line created pre mkt. 4159.75. Or a breach of the DL I would exit. Notes: SO far today, I'm learning how sometimes these small successes can add up. I don't have to be a greedy pig looking 20 point runs. Get in, take a chunk, get out. Trade #4: -1.75 1. PB to DL. Long at 4161.25. 2. Initial Stop below DL, Plus 1 tick. 4159. 3. Target pre mkt high 4163.75. Or a breach of DL. Notes, Stopped out because DL was breached, BY ONE TICK. AHHH. Little upset, but I said, "That's the game, let it go...next." Kept my head. Trade #5: +3.25 1. Long on PB to DL, In a channel, 4162.75 2. Initial stop 4162.25. LOVE THIS. Great entry. If it breached DL, out. Signal Invalid. 3. Measured move. Channel in place. Target 4166 mean of channel. Notes: Trade went much further! Even better? I wasn't bothered. Oh look at price move, cool, let it go, next opportunity. Right now, price is continually rising, my signal is not yet present, and I'm ok with this. I have to go to my JOB. Summary, Profit of 6.75 points today. I'm learning a lot of patience here in the 5. I was originally concerned that my signals wouldn't be here, etc... Its just not the case. I'm enjoying watching the 5 more, because I feel more in control, especially of myself. With the 1 there was so much analysis, bars printing very quickly etc... I look forward to continuing this journey, and I'm about half way through Douglas "Trading in the Zone". Great material for anyone who has not read it. My schedule for the week: Tuesday must replay bar by bar Wed, Morning SIM, Thursday, replay Friday --> Try to SIM, but I am watching my two daughters, one happens to be needy (3 months) If no SIM, replay. I hope to attain SIM consistency during the rest of this year. I also hope to really learn a traders mindset as well. Chart attached. Also, I enjoyed the candlesticks for some reason. I can't even explain it. I felt more in tune with them compared to OHLC bars. Granted they all represent PA.
I could blow sunshine up yer skirt and say overall good job - but I won't The above is problematic and very troublesome One slip up in discipline - could be the one That leads to more / reverting back That leads to a tremendous loss That leads to the loss that breaks you / your account ========================== It only ever takes just one fuck up - and will for as long as you trade ================= Granted..., ultimately you did the right thing (stopped out) But it started out badly..., and could have ended a lot worse Never allow yourself the indulgence - it's one we can never afford RN
"Eccks that's a lot of reading, want to take this over to my thread in the Journals ??" I apologize- I expressed my thinking without thinking. -expressing - " constructive beliefs" and i am neither qualified to spew advice- Nor a successful trader-qualified to expound on what one should or should not do- i think this desire to share my beliefs"is my ego's way to reinforce my recent enthusiasm of how i expect I will become the success i desire to be-If I just learn to get disciplined and do it ' right' . with consistency. i think it is best i concern myself with these type of thoughts-psyche structure in my own approach to the market-and not to try to another's approach- we all have our own approach- What is "right" for us- may just be for us-alone. Some will succeed in ways we cannot get our head around- Perhaps those that do so- simply do not trade like the average trader- this positive reinforcement stuff is just a personal issue I will work through. That acknowledged- I will still ask questions- out of interest- and learning- Good Luck! SD
As a 'trend trader'- my technical question is what stopped you from allowing trade 5 - entered at the low of the channel- took a smaller profit- why did you not allow the trade to run further? Or- Why not lock in profit on 1/2- allow remaining 1/2 to run with stops raised below each closing bar low? or at the top of the channel? Is there a reason to conclude the trade with a smaller target? Why not allow a portion of a winning trade the opportunity to run higher until it fails to do so? Why lock in small gains on successful entries- when the larger gains could be realized by getting the stop up to protect the entry- take partial profits- let the remainder run until it fails to do so. If you are Sim trading- give this a try- test it out- Take the trade- get the stop to BE- take profits on the initial target- perhaps 1:1 Risk to reward- Now you are up to where your entry cost is covered- -take 1/2 off- and follow the remaining move adjusting the stop below each low of each higher bar- ? The question becomes- can you take an entry at a channel or trend low- and see multiple bar gains? Small stops and small gains are offset by a larger winning trade-would be my thinking in a trending market- The bigger trending trade- makes up for those minor losses- doesn't happen as often I expect- because trending is likely not the normal state- but perhaps it is worthwhile to consider allowing one to run when it occurs- Improves the P&L- Again- JMHO- Good Luck- Like your thread & charts! learning here-
I've been considering how to respond. And I was at work... If I was some poor schlap trading for the fun of it, a hobby, not because I want a new career etc.., I would tell you how much progress I've made and you should be Oh So Happy... I'm not some poor schlap, I want to trade for a living. If I need to understand that taking trades outside of plan is this detrimental, than I need to understand this. I need to own this. I agree with you. The trade was out of plan. I was yet willing to take it. What else might I be willing to do, undisciplined, if it's this easy for me to do? Thanks for pointing that out. It is as detrimental as you say it is. The best traders do not deviate.
Great question. Easy answer...I'm still getting used to the 5 m. On the one minute, you can follow the demand line quicker. However, on the 5 minute with a strong bull bar like that, I could have held. Hard Answer...while I was trading the 1 m, I found that I could get some REALLY nice runners. I also found, that MANY trades would come back to B/E. I did not look at todays activity after that last trade so I don't know what happened. All in all, you are right. That trade had the potential to move much further, but I'm beginning to adapt the mind set of, "Instead of riding the whole trend, including the pullbacks etc..., take out some chunks." I want to produce a daily PnL...eventually. I wouldn't hold a trend all day ever. I would pull chunks out. Maybe that's just me. Maybe I need to change. But that is how I see myself trading. Pullback, take a chunk, go flat. Pullback, take a chunk, go flat. etc... Lastly, if I were a swing trader such as yourself, I would hold through those pullbacks, as long as they didn't retrace more than 50% or so. It also was a nice measured move with low risk.