I'm getting killed today in the YM.

Discussion in 'Index Futures' started by lynx, Jan 19, 2010.

  1. lynx


    Hi Everyone,

    I thought I finally had this trading thing. I've been breaking even for a few weeks now.

    Today I got killed in the YM as I kept shorting on the way up. I did everything right by my "system", I shorted at various resistance points but it just blew through each one and went higher.

    I came back to the computer at 2:30 and saw the price wiggling in a nice shallow up trend and figured I'd grab a few ticks. Bought at the low of the channel and WHAM it went lower.

    It's not like I lost a ton of dollars or anything but it sure is disheartening to do everything "right" and still lose 27 ticks total on 4 trades in a row.

    The thing is, I'm not sure what I did "wrong" today, and what I should change in the future.

    Let the ridicule and ass-kicking begin. What kind of moron could fail to make money on a day like today, right?
  2. lynx


    OK, just shorted again at 10,659, at 3:14. The rationale for the trade was that the price was in a down trend and it was coming up to hit it's trend line. Stop at 10666.
  3. i took a hit early in the morning and ive just been staring at my screen in disbelief for the past few hours.

    BTW, ever trade DJX options?
  4. You sound very new. Its a good thing that you followed your system to a tee. This discipline is vital for long term success. However, so is a viable system. Sounds like you need to do some more work on the system part.

  5. lynx


    Well, obviously that didn't work. I'm out for the day. Now that's it over I can see I should have been watching out for the 3:15 reversal.


    Actually, I'm not new. I've been trading futures since 2006, on and off, trying to learn. I took advantage of a lull in work to try it full time this month.
  6. lynx


    No, I tried stock options many years ago. But no matter how much I read up on them I could never get a feel for how the price moved. It would always seem like I'd get a big move in the stock price like I was hoping for but the options would hardly budge.

    Something to do with volatility, probably.

    It's something to take a look at though, thanks.
  7. You are countertrend trading in an uptrend day.

    On days like this you must establish rules to keep you from fighting the trend. The higher lows and higher highs coupled with the shallow pullbacks can help you detremine what kind of day it is.
  8. I was convinced it would turn into a reversal day as I was expecting consolidation the next couple days.

    Oops, I was dead wrong.

    I ignored the 3 consecutive 15K+ 1 minute volume bars @ 9:45. That was a good indication the up move was for realz.
  9. lynx


    Yes, that I do. Good advice.

    Thanks, makes me feel better to know I'm not the only one.
  10. Handle123


    Markets before and after a holiday have a slight bias to upside, just like the last two days of the month and first four days of next month as well. I don't recall who did the study some years back.
    #10     Jan 19, 2010