Tips on the Mental Game

Forgot one

Here is exactly what my charts contain

Price - on each chart

Volume - on one chart

An EMA - on my trading chart

Time - on a couple of charts

Horizontal and diagonal lines - that match each other - on each chart


RN

 

No you didn’t make a plan – then “outgrow” the damn thing (ever heard the term revise)

I know exactly why you abandoned it


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Make a flippin plan – trade it – revise it, OFF trading hours – till it works - then stick to it


In it, identify your set ups in such detail that a dumbass redneck could understand it/ them – or a 5 yo – take your pick

Know your set ups like the back of your hand..

Follow your plan come hell or high water

And of course revise it – as necessary – off trading hours only

But before revising - absolutely know it is the plan that is deficient.. and not simply a matter of an idiot executing the plan poorly (no offense intended)


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Intraday – I don’t scan for stocks – I trade a very small universe… and typically I trade one stock repeatedly for a period of months – then move to the next one

I’m not out to be a hero… I trade to make money… one of my advantages is knowing the typical behavior of what I’m trading.

I know its typical behavior because we meet up every day – for months on end

RN

 

Could you expand on this?

This made me think of the interesting way in which the diagonal lines interact with one another. I'm not very smart so I haven't figured out the dynamics yet - if you draw trendlines on the daily, hourly, 15 minute, whatever, they don't match up with each other. They have different slopes - Price could be hitting the daily chart trendline but that same daily trendline, on the hourly chart, doesn't match up.

How do you match 'em...is one correct? i would 'guess' the daily

 

BD

Regarding the two above posts – I will respond to both…, but before I do... Please complete the following for me

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With regard to intraday trading specifically…. How do you utilize, (if at all) the following charts;

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Iow – I’m asking next to each chart below, you describe

The function / purpose it serves you

The amount of emphasis/ importance/ focus you place on it

for/ while day trading

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Monthly Chart –


Weekly chart –


Daily Chart –


1 Hour chart –


5 minute chart –


1 minute chart –



Thanks
RN

 

Monthly Chart –

Almost zero - I just have daily, hourly, 5 minute, 1-2 minute

Weekly chart –

Almost zero

Daily Chart –

Highly significant, 6mos - 1 yr. I look for stocks that have shown me they are going in a direction for a reason - there are a couple patterns, if price reversed direction or broke at key areas, I anticipate being 'completed' or 'continuing'

1 Hour chart –

Essentially the same importance and function as the daily, the last 2-4wks - Just focusing on areas I believe I can catch moves early. Multiple tops/bottoms, some kind of 'clean' looking chart

5 minute chart –

A little less important. Here I'm watching the previous 3 days or so for the same above and potential plays off their highs/lows.

1 minute chart –

I watch this because it's real time. The other data is just a couple seconds behind. Here again, where can I find price moving for a reason being supported along the way. In addition, it should offer a risk of 1-15 cents or so. I mostly risk right off a new high/low (don't want intraday chop)

I pay attention to the open price. I don't really want to go against it unless a stock has moved 1-2 dollars + and I anticipate a reversal in the S&P - then it at least has room to run

I feel I understand how price moves out of agreed upon areas by buyers and sellers. Where it must be supported and what to anticipate based on these responses...after that it's going to do what it's going to do.

 

Recall I remarked your approach is bassackwards – the above confirms it

You're essentially ignoring the overall picture (the most important higher order S&Rs… Ranges… Direction) and instead focusing on the minutia



I would also submit – you may be paying attention to the opening price, but in the bigger picture – have no idea which way price is really headed.. of how it is likely to move along its way of getting there


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Simple observation

Saying you won’t go against a stock unless it has move 1 -2 dollars...

Is akin to saying price moved this far so its time to short as it can’t go any further

BS... Many traders have gone broke thinking/ trading like that

And it’s immaterial whether you’re anticipating the S&P is reversing or not – ever heard of decoupled movement

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No Sir – imho you really don’t

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Below are two links

The first will give you a way to bring in the bigger picture… the second, how to execute within the bigger picture


I respectfully recommend you tear into them... break em down and work to understand their content

Ask any questions you have


http://www.elitetrader.com/vb/showthread.php?threadid=215130



http://www.elitetrader.com/vb/showthread.php?threadid=235350

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I’ll answer your two posts above next

RN

 

Yes, they must have different slopes as there is more information contained within the same number of bars

By, having a set way of drawing lines… by eyeballing… and by ensuring the lines always cross at the same price point(s) across the various TF charts

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Take some time and practice drawing lines – soon it’ll become second nature…

You may even pick up some interesting tidbits about how price moves over/ through different TFs (hint..)

RN

 

RN,

Interesting how properly drawn lines tie together the story. Low risk bets could be nothing more than Geometry - it was always my favorite subject

I'm trying to work thru many questions on the technicals I could bombard you with on my own for the time being.

Just one question - as you follow price, are you concerned with cycles (Hurst or whatever)? Since PA can be repetitive (I look for those I 'see') so I was just curious because timing can be the most difficult part. Don't mean to get ahead of myself.

BD