Friday Log - Abbreviated Session

Today was an abbreviated trading session due to a weekend in NYC. Tried trading this morning with no success. Market was very volatile at the open plus had to get ready to leave for NY so my head was not in the game nor calm/focused enough to trade.

I almost set a trade prior to leaving as I thought the market would at least test the overnight HH which it did plus five-six more. One of these days I'll have confidence to put on a trade and let it work without watching. That will in deed be a good day.

Monday starts a new day, new week and a new month.

Trade Well !

Thursday Log – Sliced and Diced

Too many trades to critique today as I started strong, got caught up in the chop and didn’t play the channel as well as I could have. I had a couple of emotional trades today after a “tweet” called out buying / selling programs and didn’t trade what I saw. Instead I traded what he saw. It’s interesting to see what others are saying about their bias on the market but in the end, I must make my own decisions. In the future I’ll be more conscience of this fact and write down what I see and trade accordingly. Result: -12

This market has been very tough for me to trade this week. I’ve been caught in bad positions more than I care to acknowledge but I must review and learn. Maybe it’s the end of month volatility that is throwing me off this week’s game? I’m having a difficult time getting in sync with the market this week but becoming familiar with recognizing my “feeling” of being out of sync productivity wise during the trading day.

Stops were very good as I did not have more than three point losers. That was a plus. Also, I was “experimenting” with getting back on the horse after a loser and taking either the same or different position. I’m working to minimize the fear factor after experiencing a bad trade. TraderFeed had another great post yesterday (May 27) titled “How Do I Handle the Mood Swings of Trading”. One of the quotes that hit home was “The threat of losing can turn into the opportunity of rethinking market assumptions”. What a thought provoking way to think about your position and stops! Also within the post is a thread to an earlier post of his on a related subject.

So tomorrow it’s back to the charts, the price action and patience as it’s a fresh day and I truly am digging out of the hole. More accurately I’m pulling myself off the chopping block after being sliced and diced and handed another helping of “Mr. Market’s humble pie.

Trade Well !

Wednesday Log – Missed Opportunities

The first missed opportunity (MO) was the emotional spike @ 1000 once the existing home sales number was announced. Had the thought of going short near overnight high of 914 but never entered. Price hit 12.75 before diving to 905. If it looks good, take the trade. A low risk entry with a 2-3 point stop above overnight HH. Result: MO #1.

I was a bit anxious to trade today after yesterday’s lack of action and playing a game of scratch while today began the same. Due to my anxiousness to trade I entered into an emotional short trade that in the end made me ante up. A range bound start to the AM session, I entered near what I thought was the top of the range. After taking out my three point stop, price proceeded to hit my target of 907.25. Tried another quick trade with a tight stop but lost that as well. I was irritated with myself by taking the emotional entries. Result: -8.0

Although overall I feel I’ve been patient and trading with minimal emotion, today I was impatient and Mr. Market sent me a wake up call. So now I was forced to “work” by going into damage control mode (DCM) and begin scalping back my two boneheaded emotional trades. I was going to try a couple bracket trades today but did not feel comfortable with brackets while in DCM.

After coming down and touching my previous stopped out trade target which was also the trendline (beginning from yesterday last LH) and lower edge of intraday range, waited for price pattern. Once price made a “close enough” IVB, I entered long @ 07.75 and looking for 1-2 pts on 2 C’s. Target hit @ 09.25. Result: 3pts.

Next trade I laid in the weeds for the test of previous day HH of 911 and stop run which occurred. Went short @ 911.25. Target was 2 points on both C’s. Peeled one off once 2 pts. were in the bag and swung 2nd with tight stop. Another successful scalp as DCM was now virtually completed. Scratch on the day. Result: +4.75

Trendline was broken at 1300 and looking for two legs down. Market made intraday LL of 94.25 @ approx. 1338 which also tested VWAP. Missed opportunity after second leg retracement to 902 area. Initial trade idea was to go short @ 40% Fib and TC set-up but did not take the trade. No excuses. Missed at least 4-6 points. Result: MO #2

Once LL was tested, internals, ETF’s were weakening and on slight pullback I went short after PP had been previously penetrated. Was thinking that market would go thru LL by 1-2 points so first target was 95.25 which was hit. Second target was 93.25 from where I walked down the stop. Had thoughts of 91.25 but did not want to get too greedy after recovering from the earlier 8 point deficit. Exited last C @ 93.0. Result: 8.25

At the end of day, the CE trade would have worked off the bottom area of 890. Again, hesitated on going long as shorts needed to cover. Potential of 2-4 points. Result: MO #3.

Good recovery from early deficit but left several points on the table thru inaction when set-ups presented themselves. When the set-ups occur and there is a low-risk entry, do it! With proper trade planning, the worse thing that can happen is getting stopped out with a responsible loss. I’ve recovered from deficits before and can do it again. Have confidence.

Trade Well !

Tuesday Log – Feels Like Monday

Today’s action found me on the sidelines most of the day. Felt like a Monday, traded like a Monday and I took minimal trades, just like a Monday on this Tuesday after the Memorial Day weekend.

Market opened long and wanted to get in but wanted to wait for CC report. Market went parabolic after CC report announced @ 1000. Was waiting for low risk pullback once the market went parabolic but the train left the station without me. I’m looking to use 1 minute chart on these hard moves in order to find an opening to participate as there was a subtle pullback on the 1 minute. This is a method outlined in Brooks’ book.

Tried a CT short at top of the range @ 1139 but ended as a scratch as price failed to move to 901 area (bottom of range). I was being very conservative and patient through the day.
Result: Scratch

1415 reversal period came and went without the anticipated pullback. New high was made at 1439 which looked like a move to run stops and in hind sight that’s what it was. There was lighter volume, SS and ADX divergence with the HH and waited for trendline break which occurred @ 1454 and then anticipated two legs down.

Went long to early before second leg was completed. Tightened stop to above swing of 1st leg and got stopped out. Result: -3

Took the other side (short) to ride the second leg down which worked out although may had tightened the stop too quickly. I did not have closing order ready @ 905 support area which was first MA touch and would have been a TC long set-up. Next time I must have PO1 set with 50% of position taken off and re-set remainder with stop @ B/E and second target for PO2 which would have been hit. Result: +3.25

I need to be in the mind set to enter bracket trades and will do better with this aspect of my trading tomorrow. One thing I was more conscience with today were my stop locations, but more importantly analyzing and identifying “at what price level am I wrong”. Seems simple enough but did not really think of it in those terms until hearing it from ‘Q’ @ Tickerville.

Also, beginning to be aware of the price action strategies as discussed in “Reading Price Charts Bar by Bar”. Just about completed the first read through and will be reading it several more times. At this stage of my trading, this book takes my understanding of price action to the next level. Hard to put this book down and plenty of “ah, ha” moments as Brooks explains several price action points that are very familiar after spending literally hundreds of hours of ES chart time observing and participating in price action.
Tomorrow is another day.

Trade Well !