Charting my trades
- Thread starter jboydston
- Start date
Granted each day sets up different, but doing your homework in the evening, and then tweaking that somewhat based on pre-market indications is important. Going into the trading day without a plan of attack(not a bias) is not wise. As Linda Rasche states over and over, let the market come to you, i.e. wait for YOUR setups, don't force the issue, is paramount. How many trades per day is irrelevent, take what the market and your vehicle gives you. Scalping is different and delay is death ,you are on automatic pilot essentially; so don't mix issues, or try to trade different ways id. Stay true to your signals; but after trying all methods, I find effort versus results leans heavily toward my seeking out the larger id moves and avoiding the 'noise'. Hence, I'm alert but can sit back and wait for the market to set up for me, then I spring and consequently can wait out the ensuing move without getting jumpy.
So the indicators you choose to follow should correspond to the type of moves you are after; any thing else on the screen will only serve to confuse.
So the indicators you choose to follow should correspond to the type of moves you are after; any thing else on the screen will only serve to confuse.
stkcowboy, this is great! Exactly what we need more of here: constructive, intelligent dialogue.
My thoughts:
1. no rhymn nor reason to your trade setups.
Yes, most of my trades are "gut feeling" with T/A to back them up. I have been trading for about 3 years and have found this most profitable. However you make a very good argument that I will have to consider.
2. the times you 'pick' to trade seem to me to be the amateur or high risk setups(ones where I would be selling to you).
Well put.
I have almost no success trading the morning. Afternoon just seams to work better for me.
3. dump the MACD and all other osc; they are a waste of time and keep you out of best trades.
OSC's are just noise in your In your opinion? I can definitely see your point. Use price action and MA's instead?
4. you seem too nervous, you need to let your trades work for you otherwise you will always be churning your account, small profits/losses each day.
I have definitely been more nervous after increasing size to 3-4 contracts.
5. if you must persist in scalping then do much more of it, a few trades a day, cherry picked, is not the way to scalp.
My intention was not to scalp, but with larger size even a 4 tick move seams to convince me to close the trade early.
6. since you are trading a market proxy pull back a little and trade the larger id trends by using 5 or 15 min charts with BB and two ma; and as ditch says only trade in direction ofr both ma.
Very wise. I know better. discipline makes (the trader's) world go 'round.
7. stop shorting new lows or buying new highs on a 1 min chart and realize you are in the noise and there are no trends; refer to 6. above.
Agreed. A little momo I though in for good measure. Most of these trades I made upside down, trying frantically to get back positive for the day.
8. specialize in only one or two setups so you can then go back after a week and review how you're really doing, as I said you are all over the place.
Yes, this is much more logical.
9. your thread and charts are wonderful, good work ethic, makes me feel you will be successful if you specialize in your setups and step back a little and forget the chump change mentality.
Thank you , I hope this thread can be mutually beneficial.
10. remember one good trade a day is much better than what you do and is less stressful, hence you will last longer as a trader; you will definitely burn out and get physically sick at your pace-this is very important to consider.
YES YES YES! I have a sticky note on my monitor that says "It only takes one."
My thoughts:
1. no rhymn nor reason to your trade setups.
Yes, most of my trades are "gut feeling" with T/A to back them up. I have been trading for about 3 years and have found this most profitable. However you make a very good argument that I will have to consider.
2. the times you 'pick' to trade seem to me to be the amateur or high risk setups(ones where I would be selling to you).
Well put.
I have almost no success trading the morning. Afternoon just seams to work better for me.3. dump the MACD and all other osc; they are a waste of time and keep you out of best trades.
OSC's are just noise in your In your opinion? I can definitely see your point. Use price action and MA's instead?
4. you seem too nervous, you need to let your trades work for you otherwise you will always be churning your account, small profits/losses each day.
I have definitely been more nervous after increasing size to 3-4 contracts.
5. if you must persist in scalping then do much more of it, a few trades a day, cherry picked, is not the way to scalp.
My intention was not to scalp, but with larger size even a 4 tick move seams to convince me to close the trade early.
6. since you are trading a market proxy pull back a little and trade the larger id trends by using 5 or 15 min charts with BB and two ma; and as ditch says only trade in direction ofr both ma.
Very wise. I know better. discipline makes (the trader's) world go 'round.
7. stop shorting new lows or buying new highs on a 1 min chart and realize you are in the noise and there are no trends; refer to 6. above.
Agreed. A little momo I though in for good measure. Most of these trades I made upside down, trying frantically to get back positive for the day.
8. specialize in only one or two setups so you can then go back after a week and review how you're really doing, as I said you are all over the place.
Yes, this is much more logical.
9. your thread and charts are wonderful, good work ethic, makes me feel you will be successful if you specialize in your setups and step back a little and forget the chump change mentality.
Thank you , I hope this thread can be mutually beneficial.
10. remember one good trade a day is much better than what you do and is less stressful, hence you will last longer as a trader; you will definitely burn out and get physically sick at your pace-this is very important to consider.
YES YES YES! I have a sticky note on my monitor that says "It only takes one."
Did you seriously take a lunch break with a position on? I don't even take a bathroom break while a position is on let alone a lunch break! Allow me to refer you to a thread by rs7:
http://www.elitetrader.com/vb/showthread.php?threadid=6956
Particularly the 3rd and 4th posts on the first page regarding Exits are apropos.
<Edit>The very long post by rs7 entitled Size is also excellent in talking about the issues of fear and increasing size and is probably also appropriate in light of the stops issue mentioned in the next post.</Edit>
Ok what I'm noticing:
I really like the fact that you are taking responsibility for your trades. You have posted them here and are writing them up. Your past trades are your best learning resource. If I could make a couple of suggestions:
Get to know the types of positions you are putting on inside and out. Figure out how far the market can go against you with the trade still proving out right. You need to figure this out because you need a more consistent stop loss procedure. If you find you don't have market points to put stops above or below, then you might try to see if you are getting into your trades early. If you waited for the trade to set up its top then sold as it started down instead of selling into the rally would that make a difference? Also, stop thinking about your stop losses in terms of dollars you are willing to lose. Think about them in points, just the same as if you were doing one lots. The market doesn't care if you have one or 50 contracts at risk, neither should you.
You seem to have a method of entry based off the trendline. This is a viable method. You should come up with a few rules to help you execute the trades at the right times. You might find that when it breaks through the trendline to the upside, for example and then trades back below the trendline that this gives you a good entry signal and give you a good point to place your stop order.
Figure out what type of trader you are. There is a difference in many traders between what type of trader they are and what type of trader they want to be. You need to be true to yourself so that you are not in conflict.
Understand your weaknesses and build rules and systematize your method to protect you from your weaknesses. Use your discipline to follow your rules. Like Clint Eastwood said in one of his movies, "A man's gotta know his limitations." If you like to chase the moves, set a fixed amount from the trendline (or whatever your trigger point is) and don't take the trade if if goes beyond that. Like if it has already moved down 2.5 off the trendline, it might not be a good risk/reward trade to sell it down there. Of course you need to know when to break the rules too but that comes later.
I really like the fact that you are taking responsibility for your trades. You have posted them here and are writing them up. Your past trades are your best learning resource. If I could make a couple of suggestions:
Get to know the types of positions you are putting on inside and out. Figure out how far the market can go against you with the trade still proving out right. You need to figure this out because you need a more consistent stop loss procedure. If you find you don't have market points to put stops above or below, then you might try to see if you are getting into your trades early. If you waited for the trade to set up its top then sold as it started down instead of selling into the rally would that make a difference? Also, stop thinking about your stop losses in terms of dollars you are willing to lose. Think about them in points, just the same as if you were doing one lots. The market doesn't care if you have one or 50 contracts at risk, neither should you.
You seem to have a method of entry based off the trendline. This is a viable method. You should come up with a few rules to help you execute the trades at the right times. You might find that when it breaks through the trendline to the upside, for example and then trades back below the trendline that this gives you a good entry signal and give you a good point to place your stop order.
Figure out what type of trader you are. There is a difference in many traders between what type of trader they are and what type of trader they want to be. You need to be true to yourself so that you are not in conflict.
Understand your weaknesses and build rules and systematize your method to protect you from your weaknesses. Use your discipline to follow your rules. Like Clint Eastwood said in one of his movies, "A man's gotta know his limitations." If you like to chase the moves, set a fixed amount from the trendline (or whatever your trigger point is) and don't take the trade if if goes beyond that. Like if it has already moved down 2.5 off the trendline, it might not be a good risk/reward trade to sell it down there. Of course you need to know when to break the rules too but that comes later.
Regardless of whether I agree or disagree with your trading methods, I want to say that your annotated charts with profits, entries and exits is an excellent way of presenting your journal, probably the best I have seen so far on Elitetrader...
When I was struggling, I would look back at a series of my trades and joke to who would ever listen that if I just reversed what I did I would be profitable; i.e. short instead of going long etc. But it depressed me because it was true, how could I be that bad and actually be trying that hard!! Well, it dawned on me what a fine line there is between success and failure or between profitability and loss; and I just needed to fundamentally/drastically change how I perceived movement on a chart from taking the easy trade, i.e. following the crowd(buying highs, shorting lows) to being uncomfortable and taking on risk(the mkt rewards risk takers by its nature).
Looking at trades#6,7,8 I would have been on the opposite side clearly and on #9 I would have been pressing the bet instead of being nervous and jumping ship on the first contra move, because your setup was perfect there.
So, not trying to be critical here, but I see you as a train wreck about to happen if you don't step back and analyze why you seem to be on the wrong side of most(not all) your trades. Possibly a more expert person here if he sees the same thing might have a better insight for you.
Looking at trades#6,7,8 I would have been on the opposite side clearly and on #9 I would have been pressing the bet instead of being nervous and jumping ship on the first contra move, because your setup was perfect there.
So, not trying to be critical here, but I see you as a train wreck about to happen if you don't step back and analyze why you seem to be on the wrong side of most(not all) your trades. Possibly a more expert person here if he sees the same thing might have a better insight for you.