Big Candles

I've been working on holding back on any trades except for the C/O and gap set-ups during the first hour. The volatility is generally too great and it's to hard for me to change my mind in a fast market.

Lately I have found much more consistency and success after the first hours range has been established and the market settles down. Combo plays can be a clue but I'm finding I'm much better off waiting for "easier" set-ups.

Gave a shot at a long (long-shot) in the 1118 support area after a potential set-up appeared but the market wasn't ready to throw me a bone. Got stopped out and waited for the next trade until the 1112-1110 bottom was hit and tested before getting long and riding the entire position up to 18's with 1.25 trailing stop as I had to leave for the afternoon matinee of Avatar (awesome movie).

There was a gap fill from 12/31-1/4 of 1119.25-1113.25 that was hanging out there until it filled today. Should have been a clue for me before getting long at 1118's. The short play once the support in the 1119 area was tested and broken was the trade to ride lower before considering the long.

Watch out for BIG candles and the first hour. They can be a menace to planned trading...at least for this trader.


Trade Well !

Stop & Look Around

I continue to trade daily while limiting outside distractions. I've needed to refocus my attention to what I am doing and thinking during the trading day while establishing better patience and control. My efforts seem to be paying off.

This week kinda clicked for me as I realized my patience and stalking for trades has been much improved "all year" (hey, only 2 weeks into 2010 but it's a start). I've been waiting longer for better, low risk set-ups rather than taking emotional trades "just to get in". The trades will come.

Virtually everyday, there are 1-3 great set-ups that can turn profitable and validate our thought process about the trade. I am now waiting more patiently outside the volatile periods and waiting for the right time to enter once my set-up appears in the cross-hairs.

This business is the toughest thing I have ever tried to learn. But it is a passion and never once have I ever considered quitting. It's about tweaking this and that, rallying resources, stepping back at times, referring to other traders' thoughts, ideas and strategies while developing our own styles. It takes time, lots and lots of time, patience and persistence. But eventually, those of us who persevere will eventually break through and achieve the consistency and satisfaction of cracking this hard shelled nut.

So during the past couple months, I've been a "low rider" when it comes to participation in Eminiwizard chat, TradingConcepts charts and Trader Twitter "Tweets". I just needed to refocus on me for a few weeks, get through the holidays while regaining confidence and further developing patience, market rhythm assessment and trade planning / managment. Sometimes its good to just slow down and take a break.

"Life goes by pretty fast. If you don't stop and look around once in a while, you could miss it" - Ferris Bueller

Trade Well !

K10

After taking an extended vacation through the holiday's, I am back and ready to resume regular trading, blog entries and routine. The time off was needed as the holiday period between Thanksgiving and New Years included dinner parties, out of town travel and enjoying the season with family and friends without too much pressure.

So now it's time to refocus on trading and improving consistency which is 90% mental. Developing patience, being aware of loss aversion and commitment within trades are valuable and important disciplines to practice during each trading day and within the framework of each and every trade.

As I move forward in 2010, I have revisited and re-established a off-line journal to help identify key trading ideas, results and affirmations. Although I will continue to post in this blog, my entries will not necessarily be daily as before which will help me redirect my daily time management.

May our trading be prosperous in 2010.

Trade Well !

Monday Log - Scalps Only

Tried a couple trades in AM session and called it quits for the day. Difficult to get a read during the higher volatility periods of the first hour. More success in lower volatile periods. Result: -2.0

I'll have minimal postings for the next month / thru the holiday period. Holiday trading periods are difficult, going out of town for 2 weeks and jury duty will make daily postings difficult as the flow will be difficult to keep in rhythm with.

Trade Well !

Tuesday - Friday Log - Expiry Week

Minimal trading this week and needed a little break from posting in my journal. Tight ranges, expiry week and long periods of time with minimal movement is difficult to engage in all day.

Next week is Thanksgiving holiday. Opportunities for decent trading expected on Monday, Tuesday and Wednesday AM session. Enjoy the weekend.

Trade Well !

Monday Log - Expiry Week

Entered a short trade early in 99's after the open planning for half gap. Internals were strong and there was no significant profit taking after 0900 so I was guarded. Stopped out and turned position around immediately as I went long from 1101's. Scaled out prior to R2/04's and in 06's. Two trade Result: +5.5

Attempted a couple lunch session scalps. Ended as a scratch. Tried one more scalp in late lunch session entering long in 08's and exited high 09's. Result: +3.0

Friday the 20th is expiration Friday. Expect volatility during the week.

Trade Well !

Friday Log - AM Only

Did not enter a trade until after the 0955 Consumer Sentiment report was announced. Waited for the market to tip it's hand. Went long in 86's once angel formed and price tested the GLO and RTH opening price areas of 87-88's with two point stop. Scaled out in 88's and 89's just under PP. Result: +5.50

Tried a couple more scalps in mid-late morning which cumulatively resulted in a virtual scratch. Closed it up for the day prior to lunch session.

Trade Well !