Tuesday, January 31, 2012

Trading Psychology Tests - Tue 1 31 12

The number one thing we always hear is separating emotion from trading. I couldn't get rid of my emotion today, so I didn't trade. I missed the big move up this morning. I started to come out of it and got focused for the pm session. That session was a test of trading discipline. There was only a range of overlapping, poor quality price action. No trading and that's a good thing.

Monday, January 30, 2012

British Pound Futures 6B Break Even - Mon. 1 30 12

Lots of overlap today on the bars. I missed so many entries that I became frustrated, which is an emotion, which interferes with thought and the trading analysis process. So I took a trade at a breakout or trigger rather than a limit at support long. After wiggling up & down I got out break even.

Not happy, it continued up and down, more overlap, but if I was thinking, I would have waited for the low limit and entered there, and would have had a tight, very small stop, and good scalp gains. Also there was another chance at the exact same level to the tick for another entry later on that I was not prepared for either.

Took a walk, it helped to get some of that emo turned around.

Sunday, January 29, 2012

Sunday Night Futures Market Action Trending - Sun 1 29 12

Rare nice trends this evening on the currencies, somewhat US indexes, gold, oild, US dollar. After a very nice trending down leg, a short base and a trend turn up with follow thru. Very nice, tradable, and not seen so often so early.

I didn't take any, they all seemed so easy and having seen so many nights of lack of follow thru, I didn't trust any of the setups. All of my analysis was correct, so it was good practice.

Must stop now and rest for the morning. I'd like to be ready for the US equity opening.

Looks like a potential long after this PB, but I gotta stop now...


First long after PB would have failed. The 15m comparison with 5m below shows why:

Thursday, January 26, 2012

Small Gain Trading E-mini Dow ($5) Futures - Thu 1 26 12

Limit trade entry method with the tightest possible stop. Since my account size is very small, I am only taking this kind of trade. It was only a scalp, it was also at the point where, if price action moved lower, would be the stop out point of a long entry of many possible long trade scenarios.

So as price advanced favorable for me, I advanced my stop quickly since I was ahead nearly 10 points, I got 9 ticks. It did move a little more but didn't hit my target of just under the prior pivot high. So what I kind of missed was shorting that stop out point, the reason I say that is because that point is where bulls would decide that price action turned bearish.

At that point, price did fall much more and the trend was confirmed down. But it is hard to switch bias so quickly. Maybe someday I can analyze the reverse of my current position, sounds challenging.

E-mini Dow ($5) Futures is YM - CmeGroup

Wednesday, January 25, 2012

Mistakes - Wed 1 24 12

There was a time when I was calling myself NQ Trader Jay,* when I was trying so hard to be a good trader, but I was still making a lot of errors. Most of these mistakes were due to my trading psychology. I knew I had to change it. It took me YEARS to change it.

I can finally say that I now have a different psychological trading state of mind. So when repeating a mistake from back then, it can make me wonder if I am reverting in my psychology, well, I am not. But what I did was repeat a habit from back then. That's a huge difference. More on this later.

*I was focusing on trading the NASDAQ 100 futures contract, I almost never trade that now

Free Futures Trading Room Today and Tomorrow - Wed 1 25 12

Today and tomorrow is the Pristine trading room for futures FREE entry! I'm in there, it's really good. Take advantage of it while you can.

I had a crappy trade, 6A, Aussie dollar was a really great entry but I managed it very poorly, using that old scared money method of advancing stop too soon. And, that dumb stop got slipped! I haven't been slipped since tradestation. So I only got BE+1 :( it went on for 20 more....

Tuesday, January 24, 2012

Missed am Trading Tue 1 24 12

Up late working on getting the machines running to do the blog from Linux. My trading plan rule number one now is to be disciplined in preparing. So up late but needed rest, so up late in morning, then need to prepare same way, no cheating, so I miss the morning, will be prepared for afternoon. This is starting to work for me.

Monday, January 23, 2012

Scalp Traded British Pound Mon 1 23 12

There was a drop in all the currencies and the indexes but 6B was holding in what looked like a bull flag. It was the strongest of the bunch which usually means don't short it, but all the others were moving so far and this one was lagging but it was forming a failed bull flag so I took the break under a small consolidation.

I got filled well and was favorable pretty fast, which is rare. But of course, follow thru is very rare and as it was moving, I saw a spike in the dollar which usually means a pullback so I set my target very conservatively at the extreme of the prior move and was filled and out for a tiny scalp.

Sunday, January 22, 2012

Some Links

Added new tab for Links I use every day. For me & you. I use them sometimes from here when I'm on a browser not on my main machine; no access to bookmarks.

Must know the news release times and how big of a news event it is.