Awash's Journal

Today was a poor day for trend trading. I’m still plagued by the infamous three mental errors/mistakes I always make and I don’t know what to do to resolve them. I believe I’ll only remedy these mistakes with time and experience. Even though there wasn’t much trending today I was able to capitalize off strong resistances areas today.

Trade#1 – [Short 1002.50 11:57 EST & Cover 1000.50 12:36 EST] Double top pattern formed at my reliable resistance area of 1002 - 1003. It was like deja vu from yesterday’s double top. I didn’t hesitate on this trade, thank goodness and was able to cover the position on the 2nd reversal signal (on 1 min chart). I didn’t take the 1st reversal because I wanted to see what developed.

Trade#2 – [Short 1000 14:12 EST & Cover 999.75 14:21 EST] This trade completely frustrated me because I made two killer mistakes which cost me. First I missed an opportunity to enter short off the strong resistance area of 1002, all day that area has proven to be reliable. Secondly, after price turned off to the downside I hesitated to enter the market two times. I was supposed to be short by 1001 but instead I got filled at 1000. At that point it was too late!!!! I couldn’t make the split second decision. I ended up covering at 999.75 on my pivot and doji candle. It could have been worse!

Mistakes for today:
1) 11:22 EST Missed opportunity to go long after price broke out from its early congestion
2) 13:46 EST Missed opportunity to go short off reliable resistance area of 1002-1003
3) 14:21 EST Super late market entry, couldn’t make split second decision (too hesitant)

Stopped trading at 14:25 EST (Too many mistakes today) Guess what? Price turned away from that resistance area on four different occasions today. And I was only able to capitalize once. I really have to bring a quick resolution to my trading errors.
 

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Looks like everytime you lose $ on a trade.. you associate the trade as bad or a mistake. Also in hindsight missing great trades, entries, and exits is very easy to do.

How about just taking a step back and accepting the loss and understanding that its just part of the game.

In my opinion a mistake should only be counted as hitting the wrong button on your keyboard.


--MIKE
 
Quote from Trend Fader:

Looks like everytime you lose $ on a trade.. you associate the trade as bad or a mistake. Also in hindsight missing great trades, entries, and exits is very easy to do.

How about just taking a step back and accepting the loss and understanding that its just part of the game.

In my opinion a mistake should only be counted as hitting the wrong button on your keyboard.

--MIKE
More...

Trend Fader,

I believe that I have a serious problem. My main problem is when an opportunity present itself I lose a little bit of confidence and consequently I become hesitant. That's why I'm practing a 3 error discipline exercise!

As for my trades today I didn't lose any $. Take another look. I believe if I eliminate these problems I'm having I want miss trades, entries or exits.

For instance, today I watched price from 9:15 EST to 11:15 EST, early on price was incredibly choppy and didn't break out until after 11 am. I was intensely watching my monitor but once the signal came I just froze up and didn't make a move. I saw the opportunity clear as day but didn't make a move. I don't want this to continue to happen to me. I want to be able to make a quick decision to enter the market with a clear head, so I want have to think about it in hindsight!! It happened twice today and I had to just stop.

I respect your opinion but I really want to bring a resolution to this problem and only time will tell. To me, a mistake is not just hitting a wrong button it's a multitude of little things that some individuals overlook.
 
Quote from Awash:



For instance, today I watched price from 9:15 EST to 11:15 EST, early on price was incredibly choppy and didn't break out until after 11 am. I was intensely watching my monitor but once the signal came I just froze up and didn't make a move. I saw the opportunity clear as day but didn't make a move. I don't want this to continue to happen to me. I want to be able to make a quick decision to enter the market with a clear head, so I want have to think about it in hindsight!! It happened twice today and I had to just stop.

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I can't answer for Trend Fader. But I felt compelled to answer what I've taken from your post. Try taking a non-signal or try taking the opposite of your signal. If you are using a simulator to trade with the pain involved might just give you the courage you need to trade the right way.
 
Just a few thoughts..

1) Fear seems to be your primary hurdle to overcome. Why so fearful? Is this money that you plan to trade, a very small, but very vital part of your income? With money you can afford to lose, and a stop loss plan in place to limit catastrophes, fear shouldn't be the driving force...imho. If you do not have the capital, nor the stop loss plan, nor the freedom to live, while you work on the Real learning curve that occurs with real money in real time, wait until you do, to eliminate some of that fear. For most traders of the professional level, I think they have only 2 outcomes upon entering a trade, and they are nearly 100% at peace with Both outcomes (i.e. profit, or stop out for loss) before they enter. Not wanting to lose money and wanting to make money are different places psychologically, as are not wanting to lose and being afraid to lose.

2) Your method seems a) short time frame and b) objective. "Spends a reasonable amount of time around an S/R level" "Takes out a S/R level by a decent amount" When words like reasonable and decent are in your trading plan as triggers, its no wonder you have some doubt before entering. I'd attempt to define entry signals and exit/stop criteria a bit more rigorously before continuing trading.


Just my very meager 2 cents...take care
 
AWASH,


Get off the 3 min chart....It is eating you alive...we become accustomed to our beloved charts and can't trade without them.
Trade without it...Go to at least 5 min., preferably 10 min...set them up side by side and compare all three...for months....the longer the chart time frame the smoother it gets.
You must not become discouraged as I was when I quit trading last fall...a year later and many charts and a 1000 more hours study and I am ready to trade again.

I worked for an investment company 2 years ago and got hooked on Emini S & P. Nsdq will whip u to death...S & P is the only way to trade if you want smooth, steady, predictable flow. I am talking about intraday trading..I like to sleep @ night...

As far as watching external information, forget it....Trade with 3 or 4 points stops, and enter trade appearing on screen in front of you....Not what the underlying market is likely to do based on CNBC..Greenspan days are worth watching...Don't enter just before he speaks, but trade what your system dictates afterwards....3 or 4 pt stops....2 pt stops and u r eaten for lunch.
 
Today was a perfect day for trend trading. Early on I continued making the same errors so I took myself out of the market to revamp my game plan.

Trade#1 – [Long 1007.25 10:30 EST & Cover 1006.25 10:45 EST] I finally entered the market, although it was late I wanted to test the up trend. Went long of a higher low bounce off new support. Price turned choppy moving back and forth for 15 minutes without a clear direction. I decided to cover the position for a small loss because I didn’t like what I was seeing, not to mention reversal signals.

Mistakes for today:
1) 9:54 EST Missed opportunity to go long after price broke my R: 1006
2) 11:08 EST Missed opportunity to go short after price turned down
3) 11:19 EST Missed opportunity to go short after price broke all new support levels (too hesitant)

Stopped trading at 11:22 EST (Too many missed opportunities early on) MY OFFENSE STINKS!! By going to the sidelines I was able to REGROUP, REFLECT, THINK and ANALYZE current and past trades. Missed opportunities (market entry) were the major drag over the past few weeks; I was able to find a temporary resolution. From now on I will set buy stops or sell stops accordingly near s/r levels that way I can easily get pulled into the market without relying on myself to make the decision. For example, when price was moving up this morning it broke my resistance level of 1006, a buy stop will be two ticks above the resistance zone (or maybe before it to test the strength of the break). If price makes a strong break the buy stop will pull me into the market and all I’ll have to do is just watch price and prepare my stop-loss & profit target order. I have a better defensive game than an offensive one. I’ll try this for a few weeks and hopefully my offensive game will improve. All feedback is welcome because this is something new I’m trying consistent with my trading system; hoping my hesitation will diminish.
 

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Aaron D.

I see that you are following your primary entry rule of taking the second (retracement) movement but you really need to use the stochastic indicator as the trend indicator more. Clearly the first trade you made was countertrend if you looked at what the stochastics were showing.

On days like today, good trending days (Lord, please let them return), try to just pick out the middle of the trends (when the stochastic indicators are between 30-70 percentile ranges) Grab some smaller wins - good for your confidence.

Keep Going - you'll be there soon.

Peace.:cool:
 
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