Birth of a trader

[frank8800]

Great day for following rules. Bad day for making money.

Trade #1
Price failed to make a HH after the last push above the EMA. This last push on the 07:24 bar was a weak green candle, with the next bar closing under the EMA. Measured 7 ticks down from the last pivot high and entered a limit order. Stopped out. -8 ticks.

Trade #2
Price dropped through 1.4197 support and started a retrace back to the EMA. The 08:36 bar trapped longs and reversed short. Entered short on next bar. Had some alarms go off when price broke the bottom of the last green candle where the trapped longs should have gotten out. I was expecting price to continue down after breaking 1.4186 but it didn't. Had 5 MFE and was dying to move to BE+1 on the next bar but opted to hold steady. -8 ticks.

Trade #3
This was the pullback to the EMA I was looking for, and a small bar formed at 08:51 with more trapped longs. Entered a stop order under that bar. -5 ticks.

 

[Joman]

Dear Frank,

Though it is always easier to comment at the end of the day, I hope the comments I have attached will help you.

Overall, I have the impression you've been chasing the previous swings all day long because you missed it (used to do that a lot )

Once a trend line has been broken and the counter trend bars look stronger than previous bars, it is an indication that the trend might have changed for at least 2 pushes.

Good luck.

 

[jas_in_hbca]

Hey Frank,

Here's a couple thoughts and hopefully my trading insights are better than my penmanship. (not sure how to post directly on your chart)

When people talk 'context' i think it means look a the recent action as well the current.

I wouldn't have taken that first trade based on my notes on chart. BUT if that kind of set up generally works for you then keep doing it.


trade 2 - no comment

trade 3 i would have like to see more weakness and as noted there were signs the trend was reversing to the upside.

I put what in hindsight looks like a good Sell and is the kind of PA i look for.

rgds,

jas

ps As you know i'm no expert so take my comments FWIW

 

[frank8800]

Quote from Joman:

Dear Frank,

Though it is always easier to comment at the end of the day, I hope the comments I have attached will help you.

Overall, I have the impression you've been chasing the previous swings all day long because you missed it (used to do that a lot )

Once a trend line has been broken and the counter trend bars look stronger than previous bars, it is an indication that the trend might have changed for at least 2 pushes.

Good luck.

Thank you for your comments, they do help and I appreciate it. It's pretty clear that the first trade was premature, just as you suggested. Although I'm not too put off by 4 green candles in a pullback leg, the fact that price didn't sell off after a break of the support level should have tipped me off.

That kind of thinking crossed my mind on the second trade. Near the low of the day, I was expecting price to sell off after the low of the previous green candle was breached. When it didn't continue to drop, I was conflicted on staying with the trade or getting out with a smaller loss. I've been working hard on trying to stay with the trades and not get spooked too soon.

On the 3rd trade, I did notice the strong green engulfing bar, but in my (incorrect) reasoning, that small inside red candle showed a lack of enthusiasm for buyers and seemed like a good idea at the time.

I didn't get in this morning until almost 6am, so I wasn't able to chase the others

 

[frank8800]

Quote from jas_in_hbca:

Hey Frank,

Here's a couple thoughts and hopefully my trading insights are better than my penmanship. (not sure how to post directly on your chart)

When people talk 'context' i think it means look a the recent action as well the current.

I wouldn't have taken that first trade based on my notes on chart. BUT if that kind of set up generally works for you then keep doing it.


trade 2 - no comment

trade 3 i would have like to see more weakness and as noted there were signs the trend was reversing to the upside.

I put what in hindsight looks like a good Sell and is the kind of PA i look for.

rgds,

jas

ps As you know i'm no expert so take my comments FWIW

Thanks for the chart. No problem reading it. Both you and Joman pointed out the same problem with my first trade.

Selling under that price rejection you marked would be hard for me because I don't know where to put the stop. It was a very nice drop, though.

One reason I took that 3rd trade was because price didn't continue up after those strong green bars off the low. The small, inside red candle indicated to me a lack of buyers. However after the close of the next candle, I realized price just made a HL and I was in trouble. Probable should have cut my loss at that point.

My first trade offered no chance for a scratch, but my second and third trades did give me a small time window to get out with a smaller loss or a BE trade. I considered it, but one of the things that has been frustrating me is bailing out of trades too soon, only to see them run in my direction. I guess I need to learn the difference between bravery and stupidity.

 

[frank8800]

Trade #1

The Euro had been in a down trend all morning, then as it popped above the EMA it broke the higher time frame trend line. Had a green bar bounce off the EMA and I went long 7 ticks above that swing low. -8 ticks


Didn't do a good job on taking all the trades. Seemed like every time a setup appeared, it was near the HOD and I got cold feet. Price just kept going up.

 

[frank8800]

Today seemed fun. Don't know why it was different than any other day, but I just really enjoyed myself. Only made 1 stupid mistake.

6E Trade #1
The morning session was flat/up and price started making HL. The big red candle at 05:15 failed to drive the market down. Went long 1.4280 and was looking for a break of the 1.4285-ish resistance level. Tightened my stop up after the 05:33 bar. When price failed to push higher, moved to BE+1 and got out with 1 tick of slip. 0 ticks.

6E Trade #2
After the failed move higher, was looking for a breakdown. Entered off a 1 min chart, but didn't get the movement I was looking for. Moved to BE+1. +1 tick.

6E Trade #3
Total mistake. Entered this before the bar closed and paid the price. -4 ticks.

 

[Joman]

Hi Frank,

To have fun is important, you must enjoy the game to succeed !

Here are my comments for today's session:

1st trade: you were focusing on HL from the previous bars but looking at the previous swings you would have seen a wonderful channel. I've attached my 5 min EUR/USD spot chart.

2nd trade: you're shorting some overlapping bars after a swing down right at support level (shown on my chart too)

You then had a very nice failed final flag and channel overshoot long entry which was THE crowded trade: we were very bullish since the asian session and we were within a 25 pips range at the top for few hours. A re-test of the HOD was therefore likely.

Good luck.

 

[frank8800]

Quote from Joman:

Hi Frank,

To have fun is important, you must enjoy the game to succeed !

Here are my comments for today's session:

1st trade: you were focusing on HL from the previous bars but looking at the previous swings you would have seen a wonderful channel. I've attached my 5 min EUR/USD spot chart.

2nd trade: you're shorting some overlapping bars after a swing down right at support level (shown on my chart too)

You then had a very nice failed final flag and channel overshoot long entry which was THE crowded trade: we were very bullish since the asian session and we were within a 25 pips range at the top for few hours. A re-test of the HOD was therefore likely.

Good luck.

Thanks for the analysis Joman. I totally missed that channel. I did see the long entry off the 07:00 bar, but it was right at a red level news event, so I passed on it. I tried to go long off the 07:12 pivot, but wasn't filled. The next long opportunity for me was off the 07:30 doji, but I don't like taking trades off them, and it was right at the HOD, so I passed. That was the last entry signal for me for 25 ticks. After that, I just watched.

 

[frank8800]

Two dumb mistakes and one crack under pressure. Every trade had a problem. Added up to a bad day.

Trade #1
Traded too close to the news and right behind major barbed wire. Enough said. -8 ticks.

Trade #2
Too focused on pivots to notice that price was making HH's and HL's and this was not a short signal. Plus it was right at the market open, just to add volatility to the mix. -8 ticks.

Trade #3
Took 7 ticks of heat on my 8 tick stop, but held it for 2 more bars. Even said to myself the worst was over, but wanted out of the trade. Cut a winner short. +1 tick.