In The Batting Cage and Watching Tape (EWS)

More than likely this week’s posts will be a bit thin of content. My trading might be minimal due to my involvement with learning / studying of the EMS (Emini Wizard System) during the day (and night). If you don’t see trades posted in my journal then you know where I’ve been concentrating my time…in the batting cage, working on my swing as well as watching the video tape (observing the system) in order to improve my game and further develop my edge.

The EWS is just what this trader needed to take his game to that next level in the trading journey. The methodology has amazing structure, support from ‘E’ is prompt, insightful and collaborative while the community developing among the members adds a supportive edge to our confidence as we share insights.

One reader of this blog asked me to comment about my thoughts of the EWS system and asked me to “be honest”. Well, that’s the only way I am or will be. You may not get the answer you’re looking for if you are shopping around the same question to others, but I will give it to you straight. It might have been a longer answer than he wanted, but I feel it needed to set up some personal background. Review the comment section of the July 10, 2009 blog for insights into my decision to get onboard with ‘E’. If you have additional questions, please post a comment.

I will write more about the system in future posts as I learn the system. It is a proprietary system so I will not be posting anything that will compromise ‘E’s’ system and the many years of hard work it took him to create it. I will however share general information about the system with others who are considering joining so they can make an informed decision on whether or not they want to participate. No arm twisting from me.

Monday Log – One AB Then Worked to Improve My Swing

Trader Tip – Always use various time frames when looking at the market. You will gain different perspectives and clues from each level. Remember, the higher the time frames are in control and trump the smaller time frames.

Yes, the baseball analogy. Being an avid fan of the game and seeing that trading and baseball have a lot in common, I’ll occasionally submit these parities into my blog.

I only took one trade today and it was in the first 30 minutes of the regular session. I went short on a CO once price penetrated last Friday’s close. I saw support in the 872 area so that was my target. I did not leave any runners on and for all intents and purposes got out very near to bottom of 871.25. I had considered pulling the short trigger earlier but was trying to get a feel for the early movement. Result: +3.0

That was it for me. I went back to the training room and worked on my swing by understanding the EWS. The day started out like it was going to be in a range between the 870 – 885-890 area. But, it turned out to be a trend day as observed on the 10 minute chart. I had a long in waiting at 887.75 which was the first pullback area after the big spike at 1130. Missed it by 2 ticks. I wasn’t going to chase and was content closing out the balance of the day in the training room while concentrating on my studies and various aspects of my swing.

Trade Well !

Friday Log – Morning or Nothing?

Trader Tip: Patience, it is one of the most important emotional attributes a trader can develop. In hindsight it’s always easy to see the trades. When caught in the cross-fire of battle and having patience to wait for the proper, low risk set ups are what separates the pros from the wannabes. If we find ourselves wanting to force trades even though the right set-up has yet to appear in our cross hairs, take a break. Step away from the trading platform, get away from the environment and come back once refreshed and your mind is clear. We can then refocus on trading the right way and with what patience will bring us and that is profits! Patience is a virtue…and can be VERY rewarding too!

Pretty much another day like yesterday although I tried to play twice. Saw resistance level in 80-84 area and had an order loaded in the first half-hour for 82.25 which was approx. two points above overnight HH, yesterday close and PP. Missed by a couple points and had the trade set prior to the consumer confidence eco report was announced at 0955. It did not pick me up so I did not chase. Had one other MO on first big pullback at 1010 as price tried to retest high of 80.25 but missed it as I was more engrossed in my EWS studies.

Tried one more time to trade in afternoon session, entered short at 72.75 and added at 74.75. The 74.75 was the better entry as price began to grind between 872-876. Was looking for PO1 at 70.75 which ended up being too aggressive. Did not take profits in 72 area of support. In hind sight, that was what the market was giving me and should have taken it. Result: Scratch

So, “nothing” for me today other than having the satisfaction of not forcing any trades. In the end, that IS something!

Have an enjoyable weekend and remember to always….

Trade Well !

Thursday Log - Study Day with EWS

No trades today. I was watching the market from 0800-1000 and was not enticed to get involved. Turns out it was a choppy day. Glad I took the day to bury my face in the Emini Wizard System. All I can say is "wow"! What an eye opener.

Trade Well !

Wednesday Log – As Simple as 07 / 08 / 09

Trader Tip – The VWAP (volume weighted average price) is a wonderful tool to have plotted on your charts. I use it on my 1 and 3 minute charts as it gives me a good sense of direction with what side of the market I should be trading. I only use the middle line of the VWAP. Google VWAP for more info.

The numerical sequence of today’s date lined up nicely with my one round trip trade during the wild AM session. That first 90 minutes was crazy as the bulls and bears were pulling the rope in both directions with the bears finally taking control.

The CO set up once price penetrated yesterday’s close prior to knocking on the 79.25 door twice on the 3 min. Entered a sell entry stop @ 78.75 and filled but not before another attempt towards the PP and overnight HH. Internals were mixed but decrease in volume and SS divergence on HH gave me the confidence I needed to average into my position and added @ 81.75. Price ran thru the overnight HH of 882.5, ran the stops and stopped short of the PP where my stop was.

Internals began to weaken and NQ and TF began to fall hard so the trade began to get comfortable. PO1 finally hit just after 1100 and scaled out of my positions from there as I peeled off at key support areas. Had one remaining runner left for final possible push towards daily S1 and weekly S2 970 support area. The trade sequence was flat at about noon. No afternoon trading performed as I had to run some errands. Result: +25.5

This was one of those trades where I felt good about how I managed the trade. Although I did take some heat during the consolidation period 1000-1030, I had a good plan, saw strong resistance in 84-86 area and traded the way the market was telling me to trade. It is trades like today where I feel a sense of accomplishment in the development of my trading melon. Man, is it hard to redirect our thinking from how we are hard wired for everyday life and how we need to think in able to survive in this trading jungle. In the end, I’m told, it’s as easy and as simple as 1, 2, 3, or should I say 7,8,9? It doesn’t happen quickly but eventually it comes around and everything lines up.

Trade Well !

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 !

Monday Log – Today’s Trades & Trader Tips Begins

Today I will begin to post a “Trader Tip”. I’m not certain if it will be daily or just frequently that I post the tips but I want to capture aspects of trading that I find important.

Trader Tip: Market internals are an important part of a day trader’s basket of indicator’s. The pro’s monitor these indicators each day. Learn about and be aware of Advance/Decline, TRIN, TICK, VIX.

Still shaking off some cobwebs after the long weekend so I wanted to be conservative while I get my brain acclimated back into the game. First trade was prior to ISM eco announcement but did not stay in the trade. Was it a MO? Hindsight says it was but volatility got a bit crazy and I scratched.

Next trade was long in 887 area thinking 2nd candle of day would be support. Price continued down, realized I was wrong and got out as price went lower. Result: -1.5

After EDRP and first pullback to mid-upper KB, I went short on this first TC set-up of the day at 885.25. Price entered a chop zone and closing in on lunch time lull so had a stop just below 887 and stopped out. A three point stop would have kept me in the trade but as it turns out it was a poor entry and profit would have been minimal. Result: -2.0

Final trade of the day was going long in 886 area once double bottom held in 885 area around 1235. Price came up to previous high of 888, knocked on the door a couple times before going thru. First PO1 was 888.25 and hit. PO2 was discretionary with max being in 900-901 area in which a trailed a manual stop. Total trade sequence Result: +6.0

For the day +2.5. I’m exploring a new system to compliment my trading as I signed up for the Emini Wizard System over the weekend. I’ve been following ‘E’ for a few weeks, communicated with him and have been intrigued by his call outs of how the market will likely behave. He has communicated promptly to my tweets/emails and believe he is one of the good guys. I look forward to learning his system and picking his brain. It looks much more complicated than other systems I’ve been exposed to but that’s probably because it’s so unfamiliar.

Trade Well !