"Trading's Been Good So Far"

Friday Log - No Panic Button

Made a couple points on the open/close set-up early in the regular session. Put into account previous days resistance in the 47-49 area so I wasn't expecting much to upside. Lack of quick action let most of the opportunity dwindle. Hit first long target with remainder break even Result: +2.0

Went long again using 43-44 area as support as well as combo thinking from overnight high. Got on the wrong side and then failed to use my stop "thinking" 41 was the extreme bottom. Wrong again. I averaged in as price continued down which wasn't a smart move. Had a stop set in 35's but from previous observations and experience, anticipated price to retrace to around 50% of the move...which it eventually did. Thought price would bust through 44's and test the 46-49 area and maybe get to 51's. Price never made it and I stayed in a bit too long. Result: -5.50

A couple things I learned today was even though the position went against me and I did not play the trade sequence in a smart, well planned manner, I did not panic like I used to do in the past. I saw I was on the wrong side of the combo, saw the H&S forming on the 5 min but stayed fairly cool and collected. I'm finding myself becoming more familiar with the rhythm and flow of price action and anticipating what it might "logically" do even though course was not reversed today as I should have.

I was aware of EWS combo, the perils of averaging in on a losing position and still need to develop better habits to avoid those negative situations. Still, what I got out of it was no panic. Emotional stability seems to have been achieved even in adverse trading situations. Now I need to see if I can continue the emotional calm while also improving my trading habits...no doubt I will. Life is good.

Trade Well !

Thursday Log - Voo Doo Economics

I began my trading day planning 63 area to hold as resistance. Waist, PP and weekly mid lined up nicely along with a couple other clues as outlined within EWS. Anticipating the jobless eco report at 0803, I locked and loaded to go short at 62.75 which was below PP and beyond the overnight high(anticipated the "normal" 1-2 point overshoot). My stop was at 64 and only put on one C to test the water.

The trade triggered and was stopped out. Price went to 64's where it seemed to lose momo so I re-entered short @ 63.75 with 2 C's. Scaled out at 61's and 59's. Two trade Result: +4.75

Bought near support level of 54's but stopped out on tight stop. Re-entered long in 47's for scalps at this point. Went to the well again long in 47's around 1038 but got in too early and took 5 point hit but my stop was controlled and planned. Took the short side to gain back some loses which worked out well. 4 trade Result: -1.25

Went short in 44's over lunch session for a scalp with anticipation of stab thru 43 low which did fill. Runner ended break even. Next went long in 43's during PM session once price hit another support area and doji formed. Scaled out in 46's and 47's. 2 trade Result: +9.25

Was looking for long pop from 45's and 46's last 45 minutes of session. Only worked with one C, kept trying to get a couple here and there, worked tight stops and took 5 trades during final 30 minutes. If I was quick and more nimble, I could have easily carved out 1.1.5 scalps but was thinking a run to 49-51. Result: -2.25

Overall a good day but my trade economy was not as sharp today as last couple sessions. A few more trades than I needed to be involved with during final 30-45 minutes which was rather voo doo-ish but risk was small and only played 1 C to insure bulk of profits were preserved.

It was another day of seeing the market pretty well, having a basic plan, realizing a comfort level with my confidence and trade execution. I've been very satisfied with my emotional stability the past few days/weeks and putting EWS techniques into play daily. Combo thinking is getting sharper but still need to work on expanding the concept into larger frames and letting those trade ideas "work". The best way to do that is by creating leverage with more contracts. This will be a work in progress. With some luck, skill and some "voo doo economics", the market is becoming much less scary and much more predictable.

Trade Well !

Wednesday Log - The Fed Frenzy

Returned from the long weekend today only to be greeted by good old Fed Day. Went into the trading day looking to get involved with the morning move thinking there wouldn't be much more until the emotion of the FOMC announcement at 1415.

The first hour was pitiful as the market was basically in a 4 point range. I adjusted my "1st hour" range to reflect the low as of 1040 which proved to be more accurate a range to work from. Looked for the close/open trade to scalp a couple early points with about a 2 point stop in 69's. Once price went thru yesterday's close, I waited for a slight pullback and entered in the 67's. 1st target was 65's where I took 2/3 of position off with runner remaining for stab at overnight low area in 63's. Price stalled, I didn't like the "feel" of holding the short so went flat in lower 65's. Result: +5.0

Waited for Fed announcement before getting into another trade. Went short @ 1421 in 73's after emotional spike up. I was only looking for a quick scalp with lighter position than first trade of the day. Scaled out, re-set stop to breakeven which triggered before price stabbed into 75's. Result: +2.0

$TICK reading hit +1300 at about 1430 and again about five minutes late on divergent volume as price made new high in 75's. Went short again in high 74's with smaller position than 1st trade of the day, trying to preserve profits already bagged. First target was 72's and last target was a runner for 68's. Result: +7.0

Another day of planning, patience and getting a good feel for the market produced good profits. Using my experience from watching previous price action during Fed Day helped me work the "Fed Trade" without the emotional frenzy.

No losers again today and good trade execution, management and sequence economy. I've been seeing the trades better, my confidence in letting the trades work is sharper and my trade management has seen improvement as I go for the initial target and scale out with a plan in mind. We'll see how the rest of the week goes but feeling strong these past several days...Fed Frenzy or whatever the fuel source, I'm prepared with confidence, not cockiness.

Trade Well !

Monday Log - Under the Influence

Went on an extended weekend jaunt to ACY (Atlantic City for those not familiar with airport codes). My bride wanted to visit with a couple relatives who were planning a trip there so we decided to make the 5 hour drive. So, I'm reporting from Harrah's Casino Resort.

Started my trading day at 0830 by setting up my trading plan and looking to trade the primary move only. I reviewed the overnight action, last weeks range and in particular the Friday range and close. I was tempted to go long from the open around the 54's looking for the half gap move but held off. Instead, I had my short loaded in the 67's which hit at about 0945. Scaled out in 65's, 63's and was looking for last C off at 51's but missed the buy to close by one tick. Once price began to gain some support, I closed the trade in 53's. Result: +9.75

One trade sequence, conservative entry and exits. Well planned, virtually no emotion and I let the trade work. Initial stop was 1.5 points then moved to B/E on balance once 1st profit objective was achieved. One thing I need to consider in the future in regards to my trade management is to take part of my position off by about .5-1.o before a key S/R level. Just missed my final target by one tick, which was one tick above the overnight low. To many traders were running for cover about 1.0 before that support level so might be prudent to exit prior to that price area and leave a runner on (or add) in order to capture additional profit potential.

In the end, I felt good about the trade, my patience and planning for the trade. Maybe being under the casino environment influenced my perspective? Not sure but it sure felt good to trade for no more than an hour and then hit the other game in town.

Probably no trading or post on Tuesday as we'll be driving back to VA.

Trade Well !