Birth of a trader

I have been testing a new way to re-arrange my charts, made possible by the new monitor I bought last Friday. Previously I had been using the 5 minute chart to get my setup, then I switched to the 1 min or 3 min chart to time a better entry. This almost always resulted in a loss. I think it was because there wasn't any time to study what the LTF chart was doing.

Today I put the 5 min chart above the 1 min chart and was able to watch both charts paint simultaneously. I still need lots of practice with this, but it seemed to be a major improvement.

The only negative thing today about trading this way was I reverted back to moving my stop to BE quickly. I left a lot of money on the table doing this, but I also made a little for a change. We'll see what tomorrow brings.

I mainly concentrated on the CL today. My one 6E trade just didn't work out, and I missed 2 other trades because I wasn't paying close attention. The range was bad today on the Euro and there weren't many opportunities for my setup.

6E Trade #1
The market popped out of its channel and made a new high. It retreated back to the EMA and I was looking for a long entry. There were 4 red candles that brought the market down to the EMA. The 4th candle was a high volume hammer that rejected the EMA. I entered a buy stop 1 tick above that, was filled and killed on the next bar as the Euro started down. -8 ticks.

On CL, the early morning was range bound, and I didn't see any entries. After the market broke the overnight high, I thought a new trend was starting, and was looking for a long entry. Waited for the oil report.

CL Trade #1
After the oil report, price seemed to hold up. The 08:00 bar was a doji, which I don't like, but did close above the EMA. Went long at 91.38 and kept a close watch. The market went up, then turned right around. +1 tick.

CL Trade #2
Got 3 red candles making LH's and LL's. The 08:20 bar was a lame hammer that closed just under the EMA. Went short at 91.23 and since the two previous bars overlapped so much, I was watching for a failure. +2 ticks.

CL Trade #3
The only thing that concerned me on this trade was the pivot low support made during the oil report. This trade was very close to that. I figured that if support didn't hold, the next stop would be 90.52. Was looking for either the bottom falling out or a quick scalp. +10 ticks.

CL Trade #4
I wanted back in that trade after the pullback, so went short at 90.88. Didn't manage it very well. +1 tick.

CL Trade #5
The 09:20 bar punctured the 90.62 support and came back up. Went short looking for another push down, and the bottom falling out. I got 14 ticks, then moved my stop to +10 as the market retraced right back to my entry. THEN the bottom dropped out! +10 ticks.

I was listening to a web cast the other day, and the person said that new traders take profits too soon because they're looking for immediate gratification. Sounds like me. Tomorrow is another day.

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Quote from frank8800:

My focus wasn't the best today. I turned my back just for a minute, only to see a setup pass me by. This happened several times. At other times today I noticed great setups after-the-fact. I didn't see them while they were printing. The amount of concentration necessary to pull this off is very high, and today wasn't a great day.

If I did anything right today it was patience. I didn't revenge trade after I saw opportunities pass my by.

CL was trending down after hitting last night's high, then bounced off a 60 min trend line and headed back up. It popped up past yesterday's high, then fell back to that trend line in a very nice channel. I'm sure people skilled at that kind of trading tore it up.

CL Trade #1
After the 2nd bounce off that 60 min trend line, CL popped up over the EMA, then headed down. After the close below the EMA, I was looking for a short trade. After the 08:50 bar formed, I switched to the 1 min chart to time an entry because the 5 min bars were so big. Went short at 91.52 and was filled on the low of the next bar. Took 9 ticks of heat on my 8 ticks stop before CL dropped 20+ ticks. -8 ticks.

CL Trade #2
I was waiting for a break of the 91.06 pivot low. When the 10:40 bar came close, switched to the 1 min chart to time an entry. Went short at 91.07 and price was price was jumping around so fast, I moved my stop to BE+2. I was going to try and scalp more, but there was a 2 tick spread on the DOM and it was very jumpy. +2 ticks.

On the 6E, price was moving slow and steady. I had 3 limit orders that didn't get filled.

6E Trade #1
Price reached a high around 09:50, then went sideways/down for the next hour or so. Price dipped below the EMA on a nice shaved bottom red candle, then had a weak leg back up, culminating in a red doji. Went short expecting some profit taking selling. Held the trade a long time, but ended up +1 tick.

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Frank, enjoy following your thread,...but this chart,.....is killing me,....I waited for a pierce of 92 yesterday to go short, Have it written down still @ 92.04 entry,...... had to pee, came back, hit my level, (I never place an order when I'm not there), wouldn't you know it.....and, of course,.....you guys went out to play without me. :-)
Keep up the good work,.....I enjoy reading it. Thank You
 
Quote from frank8800:

I was listening to a web cast the other day, and the person said that new traders take profits too soon because they're looking for immediate gratification. Sounds like me. Tomorrow is another day.
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Frank, you are spot on there. When I started trading CL I did the same thing. When you prepare your order to put on the trade, KNOW in advance your levels. Have all S/R levels, minor and major, as well as levels where S could become R (and vice versa) in a trend noted in writing and in front of you at all times. Then allow the trade to work its way to at least an initial target zone before grabbing a profit.

I got some trading in today because my visitors are not arriving till later.

I shorted 91.00 exactly where you did. 90.62 was a key support level to be tested, so that would be my first initial target zone. When that level broke, next zone was 90.47. Buyers stepped in @ 90.54 and I covered @ 90.70.

Price remained very weak and I shorted again @ 90.61 just minutes after my previous exit. This was at the same time you shorted @ 90.64. I, too, had yesterday's low noted @ 90.33 and a break of that level was my initial goal. It broke, retested for a twin bottom and I covered @ 90.30.

So we had two matching trades and very different outcomes. Your goals were instant gratification and my goals were minimum technical targets in the direction of the trend.

I said this to a friend of mine learning to let winners run in CL: You need the experience of letting a 20-tick profit come all the way back to stop you out break even a few times because it didn't reach your profit target zone. Once you get to where you won't settle for less, you'll start getting a lot more.
 
Quote from NoDoji:



I said this to a friend of mine learning to let winners run in CL: You need the experience of letting a 20-tick profit come all the way back to stop you out break even a few times because it didn't reach your profit target zone. Once you get to where you won't settle for less, you'll start getting a lot more. [/B]
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oooo, Thank you Doji-san,....That has been a very frustrating part of my oil trades. I have been averaging out mostly, stops 8 - 12 cents, (or above crowd).....PO #1- 15cents, then 20 cents, and 3rd, (I only trade 3's right now) is the main support / resistance level/30 cents based on daily ATR, other things......damn I want to watch someone else trade CL for a couple days,....I know I can get better results,....
 
Quote from NoDoji:



So we had two matching trades and very different outcomes. Your goals were instant gratification and my goals were minimum technical targets in the direction of the trend.

I said this to a friend of mine learning to let winners run in CL: You need the experience of letting a 20-tick profit come all the way back to stop you out break even a few times because it didn't reach your profit target zone. Once you get to where you won't settle for less, you'll start getting a lot more.
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Thanks for the encouragement NoDoji. It's nice to know that at least today I was on the right track!
 
Traded with more confidence today, but violated 2 rules and got burned both times.

CL traded in 2 narrow bands today, with a drop around the 7am news.

CL Trade #1
CL started drifting down, and after a shooting star, there was a big red candle that ended right at the previous pivot low. The next bar broke that, then drifted up. I was looking to join the trend, and went short 91.10 off the 1 min chart. It was a perfect pullback to the EMA with a small bar. Trailed my stop but was taken out. -6 ticks.

I watched that pivot low 91.20 get broken with no heat at all. This was my incorrect signal that the market was going lower.

I was on the phone during the 7am news and watched 2 entries into that big drop pass me by. My hand was on the mouse, but I didn't want to be distracted in a trade. Both of those entries were clean with almost no heat.

CL Trade #2
CL bounced off of yesterday's low and formed a double bottom, then a pullback channel. The 07:55 candle broke out of the channel. I was looking for a test of the low and at least a 15 tick scalp. Placed sell stop under that candle and was stopped out. -8 ticks.

CL Trade #3
After the push above the EMA, I was looking for a 50% retrace of the range which was around the 90.95 pivot low. My mistake here was not adjusting my hard target for the pivot (it was set at 30 ticks). I entered on the 1 min chart and trailed my stop. Had 20 MFE. +11 ticks.

CL Trade #4
This was a break out trade that I thought I'd try. I've been watching many of these work, or at least provide enough room for a scratch.

CL made 2 more pushes up past the EMA until finally on the 10:35 bar it failed to close above. The pivot low formed on my 2nd trade was broken and CL had now formed a LH and LL. I was expecting a test of the LOD, or at least the last pivot low.The 10:45 bar stopped to the tick of the double bottom formed on the last push down. I was aware of that nearby support, but went short anyway (mistake). Entered sell stop 1 tick under and was filled and stopped out. -8 ticks.

The mistake I made on this trade and trade #2 was to sell at the bottom of a range.

6E Trade #1
My 6E trade was bad. I had been watching the market trend lower, and instead of selling pullbacks, I tried to sell a retrace of a leg. The main problem was the obvious support at 1.3658 which is exactly where I entered. My incorrect thought process was support becomes resistance, and after the 06:35 bar broke that, it would come back for a test. It did, but kept on going before finally moving in my direction. -8 ticks.
 

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Had to leave in a hurry on Friday for a camp out, so I didn't get a chance to put up my journal. Too ragged out to trade today. Funny what walking 20 miles with a backpack will do to you.

This is for Friday, Feb 4th.

I wanted to focus more on CL today. Consequently I missed some nice pullback entries on the 6E. No matter.

The pre-market in CL was very whippy, and I didn't see a good entry. The 05:30 news caused some big fluctuations, and I wanted to wait for that to die down. The news caused a big drop, but the overnight low of 90.50 held, and CL started to make its way higher. The 06:05 bar was a big green candle, and I was looking for a long trade.

Trade #1
Really poor timing here. Still getting a feel for scanning 2 charts simultaneously. Was looking for a pullback entry on the lower time frame chart, but what I managed to do was get caught on the bar's high tick and taken out before price moved higher. -8 ticks.

More news coming at 7am, so I waited and watched that triangle form. There were several false breakout probes downward. After the 07:10 bar, price kept forming LH's. I watched that double bottom form right before the price jumped off the cliff. There was no heat on that play, but I didn't take it.

Price bounced right off the overnight low before heading down. I was watching price fall, and to be honest, I was dumbstruck and more than a little nervous. It was very violent.

Trade #2
I really wanted to get in on this drop, and was watching it on the 1 minute time frame. Found a good place to enter the trend, but got 2 ticks of slip on the entry. I put a sell stop at 90.52 but was filled at 90.50 and stopped out on that bar. -8 ticks.

Switched to sim to play that breakout of the 89.20 LOD.

Sim Trade #3
Price broke the LOD of 89.20 and I waited for a retracement higher. At the close of the 08:45 bar I entered a sell stop at 89.20 and was filled on the way down for a 30 tick hard target. No heat at all.

After price settled down, I switched back to live.

Trade #4
Price finally closed above the EMA on a 2 push move. I was looking for a 50% retracement on this move. Bought the first pullback after the close above the EMA, but it was a scratch. +1 tick.

Today I definitely let the violent move fluster me. I really, really wanted in on that. I saw some entries earlier, but fear kept me from entering the order. Possibly the best thing I did today was get back on the live horse at the end, even if it was just a scratched trade.

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Its not a good idea to try and scan two charts before you enter a daytrade. Believe me I tried with hundreds of others hear on ET, The best compromise for me, I use a 3 minute the first hour or so then a 5 for the rest of the day sometimes on very trendless day even a 8
 
Quote from ddlee:

Its not a good idea to try and scan two charts before you enter a daytrade. Believe me I tried with hundreds of others hear on ET, The best compromise for me, I use a 3 minute the first hour or so then a 5 for the rest of the day sometimes on very trendless day even a 8
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Yeah, I would agree it's hard to watch multi charts. I two watch 2 markets. CL is one of those markets just just make watching 2 charts really hard. Which ones do you watch ddlee?
 
DT, as far as market go, I watch the CL (oil) GC (gold) and the SI (silver) futures, but trade only gold and most recently silver
 
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