Awash's Journal

Quote from kserra:

cdbern,

I see what you are saying here, how did you overcome this problem I find myself that it is too easy to try to talk yourself out of a trade if you think that the market "looks weak" therefore I am working towards finding a good profit target to look for on every trade, however it is frustrating to miss this by a tick, so therefore I try to trail reasonably tight stops to insure I do not lose on a once profitable trade by missing just the tick I was looking for.
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Since I don't hold long term, I suppose I could be called a scalper. Although it is my assumption that scalpers go for every trade they can lay their hands on, which I don't do. So with each trade, I shoot for at least 1 pt. If the movement is strong as indicated by the tick volume, I'll hold that position until the tick volume indicates a reversal of merit (as opposed to a minor retracement). Doing it this way, I've been able to gain 1.5-2.5 pts per trade whereas before I would jump out at 1 pt regardless. If the tick volume indicates a retracement, I bale out without hesitation.

Trading is like fishing, you catch what the stream has to offer that particular day and circumstance.

Hope this helps, if not, let me know
 
Quote from cdbern:

Since I don't hold long term, I suppose I could be called a scalper. Although it is my assumption that scalpers go for every trade they can lay their hands on, which I don't do. So with each trade, I shoot for at least 1 pt. If the movement is strong as indicated by the tick volume, I'll hold that position until the tick volume indicates a reversal of merit (as opposed to a minor retracement). Doing it this way, I've been able to gain 1.5-2.5 pts per trade whereas before I would jump out at 1 pt regardless. If the tick volume indicates a retracement, I bale out without hesitation.

Trading is like fishing, you catch what the stream has to offer that particular day and circumstance.

Hope this helps, if not, let me know
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ADDED NOTE

In the beginning I used various indicators. However, they are lagging not leading which told me nothing and caused the problems you have described.

Once I eliminated those from my screen and strictly used tick volume, learned how to interpret them, then checked 3 & 5 min. charts for patterns or trend, the problems ceased.

Also practiced this on a simulator until proficient and confident the interpretation was working as I wanted it to. Sometimes I still get stung, however usually its my own fault.

I need to remember that "perfection is a process.... not an event"
 
I’m happy with the bulk of my trading today and with my entries and exits. Took a lot of s/r signals because of the tight range and I focused more on my chart instead of watching my bid/ask screen.

Trade#1 – After going short the market turned choppy and I should have covered but instead I waited a bit to see what would develop. Nothing developed and decided to cover for a quick loss. I’ll focus more on my market exit rule #3 next time in order to save loss on a losing trade.
*Short 1118.00 - 10:18 EST
*Cover 1120.00 - 10:59 EST [ P/L: - 2 ]
*Target below 1117.00
*Stop 1122.00 (WIDE)

Trade#2 – Took reliable s/r signal in the 1121 resistance zone not to mention negative divergence. I was on time with this trade and boy was I happy. I set a realistic profit target of 2 points based on previous price action and the opening price (1118). Good way to redeem myself from playing in the early morning chop!
*Short 1120.50 - 13:10 EST
*Cover 1118.50 - 13:29 EST [ P/L: + 2 ]
*Target 1118.50
*Stop - 1121.75 (TIGHT)


Trade#3 – Entered again off reliable resistance area of 1121, at some point I was banking the market was going to breakout of its range but it stalled! My initial profit target was 1118 area but I decided to cover my short after price failed to break through 1119.
*Short 1120.75 - 14:05 EST
*Cover 1119.25 - 14:29 EST [ P/L: + 1.50 ]*Target 1118.00
*Stop 1121.75

Trade#4 – Entered again off another resistance area of 1122, but priced failed to follow through within a certain amount of time! Covered trade because of no follow through!
*Short 1121.50 - 14:59 EST
*Cover 1121.50 - 15:13 EST [ P/L: 0 ]
*Target 1119.50
*Stop 1123.00
 

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Quote from easyrider:

Awash

The first trade of the three is the only one that makes sense to me. It just didnt work out. The other two I see no reason to take. Divergence on a short time frame is very iffy, imo.
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easyrider,

Do you think you can elaborate more on "your opinion" concerning Monday's trades 2 & 3? This may help me put things in a different perspective.

Respond at your convenience!
 
Quote from cdbern:



(b.) can be deadly if indications are the market isn't going to reach your target but you hold on because that is your target . Its a place to start, but be careful unless you are accustomed to holding for long periods. Personally, I'm not.
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Quote from kserra:



Awash how do you plan to do deal with this ?
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kserra,

How do I plan to deal with predetermined profit targets that may not be attainable?

After I enter my position, set my profit target and initial stop I plan to continue managing my trades by analzying price action along with other market breadth indices and current support & resistance levels.

For instance, today's trade#3 had a profit target of 1118. Price became highly volatile after my short entry at 1120.75. Price preceded to move down in the direction toward my target but ran into some strong support at 1119.

For roughly 10-15 minutes price lingered around the 1119 area, failing to continue downward. Around 14:25 I realized my initial profit target was possibly unattainable and I started to reevaluate my exit strategy. I decided to cover at 1119.25 in order to bank some points.

In short, I'll take whatever steps necessary to manage my trades properly, whether that means constantly analyzing price action or patiently waiting for my target. My overall goal is to avoid premature exits.

All input welcomed!
 
Awash

I dont usually critique trades but I like the way you are going about this journal and felt obliged to butt in. I dont really know your strategies so I probably shouldnt have said anything. My number one rule is "do not trade in the middle of a range" and both of those trades were initiated in the middle of one. Some people make money in ranges but it is generally with countertrend type trades at the extremes. You will save a lot of money by following this rule.
 
What cdbern recommended is a technique of neuro-linguistic programming (NLP). Basically, it's a way to program your subconscious into doing what you want and not what it has already been programmed to do (programming resulting from previous traumatic events that typically embed fear and greed into your subconscious responses). NLP is the basis of what Tony Robbins uses (though Robbins repackaged the material in a mainstream-consumable way that initially turns off skeptical or cynical people like myself).

Flashboy would be better armed in defeating his personal demons with a little understanding of NLP and its techniques. I recommend reading "Introduction to NLP" by O' Connor for the skeptics/scientific types and "Unlimited Power" by Tony Robbins for the more open-minded. NLP is a huge subject with many more studies and books than these, but I feel that these are the best introductory books on the subject. Be warned that much of NLP has to be learned experientially (learned by doing) and cannot be learned academically (just reading the book won't help, and you'll feel silly about NLP until you actually try it and notice it working).
 
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