Tuesday Log – Accumulate Profits

Trader Tip: Be aware of pivot points. These are important levels that floor traders tend to work off of. I use the Carter pivot formula which is close to Woodie’s formula. All traders should consider plotting the pivots for themselves so they understand the concept. A very useful website for pivots is: http://www.mypivots.com/dn/?symbol=189 . Pivots offer clear levels of support and resistance areas. The Traderfeed blog is a good resource for pivot probabilities.

At the open I was looking to fade the gap down if internals were strong as yesterday and overnight price closed above 889-892 area of support. I missed the initial down move and waited for first pullback once price stabbed through overnight low. I could have stuck with trade on 2nd C longer but failed to do so as I was looking for 886 area (S1) as first support area. Certainly could have stayed in trade with BE stop. Result: +3.0

Second sequence trade was a TC set-up. First pullback to mid-upper KB. It was textbook but once again should have stuck with initial target on second C before tightening stop. Wanting to realize profit rather than letting my trade idea work continues to cut into my profits. First PO hit and second initial would have hit if not for moving stop. Maybe I need to just set the trade and walk away for a few minutes? This is one of the most difficult parts of trading, let runners run or at least let you trade idea work. Result: +4.5

Studying the Emini Wizard system and already discovering a new dimension to help my trading. ‘E’ talks about profit areas and to accumulate profits and not to look for it all at once. Certainly makes sense. Although we are only two days into his tutelage, I see that he has a patient style for sharing information, responsive to student questions and is pretty organized with his spreadsheets.

Entered a CE trade at 1535 but would have been better off SOH. ETF’s and indicies were making close to new lows and should have played it more conservative. But stuck with rules, only traded on profitable day albeit indicators were marginal for snap back scenario. In the future I will pass on the CE set-up when indicators are marginally in my favor. -1400 extreme TICK (triggered @ 1450) is usually a good signal to fade the move after a second stab at the lows. Looking pretty weak. 872 area next support area. Result: -3.0

Trade Well !