Thanks for advice! I am not sure when I can own a "paradise".... But I have a very big dream of owning paradises in major cities I love... My first dream house/paradise will be for my mom for sure!
Negative day today. I took some unnecessary reversal trades because last night I was testing some reversal tradesâ¦.I paid too much attention to reversal trades today, so I missed all the great big profits trend trading opportunities right in front of me. The morning session I was in positive. Last 2 hours, I took some messy trades. Sometime I am thinking maybe I should only trade one session so that I donât screw up my gains⦠The last trades was able to bring my loss from -$110 to -$33 I found a big problem of my behavior. I consider itâs a problem because by calculating all the cost of this behavior, itâs vey expensive. This behavior is, when I enter a trade, once the trade isnât in my favor, then I would immediately try it again or flip to the other side of the trade. When I say immediately, itâs really immediately without thinking.:-D Sometime it does work. But most of the time it doesnât and cost me a lot. The ratio is about 1:3, working:not working. I think itâs my amateurâs mistake. But from all the articles, seminars and books I have read. Some experienced traders do that quite often. But they are very accurate on either enter again or flip the trade⦠Statistics donât lie. So I need to add another action plan to my trading plan, no flip, no enter immediately when trade isnât in my favorâ¦. TRADE A: Entered on a reversal trade. The previous trend line was broken. It was also a failed breakout trade. Price formed a double top on 2 min chart. So I went short. But I was stopped out at 10102 levels. I was too scared to get in, plus its was 9:00PST here. Enter: 10116 Exit: 10102 14Pts TRADE B: Enter 10157 Exit: 10173 16 Pts Yellow Circle: 10139 is the R1 level, Price tested the level and failed in the morning. So I was expecting Price tested the Suply level and droped. Plus the price here formed a Double Top and broke the previous leg trendline. So I went short here. It truend out to be just a counter-trend scalp, not a major reversal trade. I stopped out at break even. Then I went back short it again, I was wrong⦠Pink Circle: Where I was so confident to think it got to be a supply level. Long upper tail, Double top. Broke todayâs high, broke trendline. So I went short again, and again and long again. I wasted totally 33 Pts just on this area which is foolish and short sighted. Looking at the whole day price action, from morning rally, price retrace to YTDâs High which is also a 50% Fib level 10058, made a triple bottom, then continue move upâ¦.What a nice pattern, I wish I could have known⦠Today: -$36.40 , 11 trades, 45%winrate.
Flipping is an advanced-level maneuver. I would not recommend it for beginners. Because if you flip, and flip, and flip... you may end up frustrating yourself in a whipsaw market. Flipping is warranted if your original assumption is obviously wrong (or that the market has changed suddenly for some reason)... and it is *clear* that the trend is the other way. *usually*... when the market/stock is approaching R1 "for the first time"... this is an important distinction... R1 will typically stop the advancement. If after the first time, market sold-off/consolidated, and now rises to R1 again... it is likely that R1 will not hold. It's tough for day trading Dow/SP today. Because a good portion of the run - reversal from yesterday's sell down - was overnight. When market opens US time, ES already up 20 points. Still... the bias for today should be bullish because of the reversal. Looking for a retracement from the morning high to long. Tomorrow if ES still goes up by 10 more points (Dow 100 points)... I would look for shorting because it may force for a range.
Well, Bolimomo has to be my mentor first. Then let me work my ass and eyeballs off now, focus on some good trades and be CP this year!
You really such a sweet kid Bolimomo is your mentor already , so you have to work-hard & work-smart for your big dreams. Matcha, you can do it, step by step ... TGIF! The World Cup is here, who will triumph in South Africa..let the battle begin... Have a great weekend Mat and Bo
Bumpy ride today. There was a great reversal set up early this morning. I followed my plan, let it pass by. I almost gave back all the early gains(+$175) around 11:30. Last trade brought the day to a 3-digit profit level. But I missed the break out trade which took out previous YTDâs high. I listened to Linda Raschkeâs seminar â5 Basic Patternsâ during lunch break. I am going to attach the PDF here for new traders. Besides discussing her indicators and patterns, she mentioned the importance of setting up tight stops. I guess I am very influenced by her presentation, plus wide stops are always my problems to ruin profit. So somehow, my stops were very tight through the day. The win rate comes down a lot, but the profit does increase than previous days. She also mentioned about only focus on basic patterns you are familiar with or even only trade one pattern you know can make you a living, I thought that was cool. But itâs hard to do for sure, you need to have huge âpatienceâ to wait for this very set up! Todayâs trades were also influenced by the book I flipped through in Boarderâs yesterday. John Carterâs âMaster the tradeâ. There was this chapter about why most of people failed. The number 1 phase destined to fail is: get too positive, get too encouraged to win, win, win not lose. Conventional wisdom doesnât work in trading. You should only focus on loss/risk management, protecting your capital rather than think about the profit first. You should focus only on great trades, great strategies not the money to buy something luxury. You should also consider losing day is not a shame, itâs normal. Every loss is a winner. You can learn from it. ⦠Sounds easy but really its hard to do Some people who have this Phase I problem, tend to move or remove their stops and think they can be rich quick or get even from the huge loss yesterday. Being stopped out can at least keep you in the game for a while, but one large loss can set you to fail and your full time trading career is over ⦠I kept reminding myself all these since last night. So today, I learned to focus on stop loss. I also stop talking about trading with some of my friends and relatives. Because the first question they ask is always: how much money are you making now. They either think itâs gambling or think trading can make them a millionaire next day. For some reason, I feel some stomach sick every time I heard these types of comments and questions about trading. I always tell them trading is very difficult. Not a lot of people can make it at the end. Same as in every industrial, it takes at least 10,000 hour to learn. Tremendous ups and downs moment you have to deal with. I am not sure if I can make it at the end but I am trying my very best. I think only traders understand traders. Anyways, I am not doing the best today, especially in last 2 hours, I got chopped⦠But I feel like my mindset has shifted to a right direction. I also didnât chase the market. I am happy with it. The hard part is to keep this same mindset. TRADE A: Short Entry:10135 Exit:10109 26Pts TRADE B:Short Entry:10132 Exit:10112 TRADE C: Long, out very quick. Entry:10153 Exit: 10166 Todayâs PnL +$116.33% winrate Weekly Recap: PnL: +$491.80 Avg trades per day:9 Win rate:44% Mistakes: 5 Cost of mistakes:$422.00 Comments: Still too many trades per day. NO move stops. Set up relatively tight stops. No chase the market. Wait for the best setup. Protect the capital. No counter-trend trading
Yes, work hard /smart! Thank you! Have a great weekend in fabulous Asia too! I am not a sporty girl. I am just a Coco Chanel fantasy type. But checking out hot soccer players are always fun!
I have met him face to face and I have read his book. Like his book. But he is a snake-oil in real life. My read. Very true. Being a trader is a lonely journey. Unless you find some partners. I suppose it's similar to trying to explain to your family that you are an aspiring actress waiting for your next break.