CL Redux

normally I still use fundamental to guide my day trading. I judged yesterday as a range-bound day, it is a correct assessment. today I will look for some abnormal movement (as you said, rogue move) when inventory comes due at 10:30am.
yesterday I shorted it at 2:12pm with 86.75(I did several shorts yesterday) , though I saw immediately I was in red, I was not totally nervous about that, I know that is a short-sell covering rally before the floor trading closing and I was a little bit too earger to enter), no more than that. it did not break through the HOD. I toke out the trade late with a minor loss ( I told my wife I could take $100 ~$300 loss, and I can recoup the loss next day, actually I broke my rues: I trade based on my wife's happiness and try to show her I can accept loss), the reason is my wife walked around me and saw the red, she was nervous( my limit order is at 86.63, my mental loss is at 86.95).

today I will try use bracket order to trade crude. I may post real time trades to CL Redux to force myself to use hard stop loss. after a while I think I will get used to hard stop. thanks helping me better trading.



Quote from NoDoji:

IMHO, using a hard stop loss forces you to master the fine art of pure technical trading, which usually results in consistent profitable trading. To trade profitably on a regular basis, you must have the odds in your favor and take all strong setups (picking and choosing from among your strong setups each day doesn't work; it's either a strong setup and you're in immediately or it's not a strong setup; still my biggest defect). Having the odds in your favor is simply a matter of finding setups that result in a particular move more than 50% of the time and then trade with a risk:reward ratio greater than 1:1.

Day trading and swing trading require that you learn to trade technically valid setups with stops placed at invalidation points. I shorted CL today because it double-topped on my 3-min chart @ 86.95, which was a lower high than the high of the day (HOD) made only 30 minutes previously, and that HOD sold off over 50 ticks very quickly, and found support at a lower low (possible reversal setup if price fails to break out again). This suggested very strong resistance at the current HOD, and significant resistance at the doubly-failed lower high (86.95). If buyers managed to push price back up through that level, my short setup is no longer valid (if it makes a lower high, it should make a lower low, or at the very least, test the previous low). That's why I want a stop loss at that level. I can always get back in and I want a small hole to climb out of, not a large one.
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Quote from EON Kid:

It meant I would add to the position at 87.00


what factors contribute to that strategy?


When I can’t pinpoint an entry I’ll take a trade in a defined zone. I just look at the RR and see if its still acceptable.

Some people follow their rules, I go on the number of reasons. Many times you get caught up on one idea/observation and take a trade because of it. I found that when I forced myself to list the reasons I not only evaluated the trade more clearly, I had more confidence in the setup.

So I make this quick list on a piece of paper (In my own shorthand), it takes about 10s and some time to evaluate it again. I found that if I could list 6 reasons the trades would work out well. Most reasons are evident before hand and a couple may become clear closer to entry.

Sometimes all these signals line up perfectly and everything is very clear on the chart. In that situation. I would average in and load the trade.
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I actually completely see the same thing in this short trade. You can never know the precise high but yes the stars are lining up on this crude short.
 
the same to me. market not always trend, it trends a while, then sideline. I use a little bigger picture to guide my day trading. I use the day's overall picture to figure out my strategy (in the finer level). I strongly beleive today after the report it will go down to 85

Quote from trackstar:

I actually completely see the same thing in this short trade. You can never know the precise high but yes the stars are lining up on this crude short.
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Quote from trackstar:

I actually completely see the same thing in this short trade. You can never know the precise high but yes the stars are lining up on this crude short.
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Oh, sure, trackstar. Last night you're all "...after i posted this I am short again from .70, a bit of manning up on my part after typing that post. half position, no stop overnight, see yall in the morning!"

But now that the trade's moved like a POINT in your favor you're all, "...stars are lining up on this crude short."

Don't you know I trade based on stars lining up? Why didn't you tell me that last night??

:D
 
Quote from NoDoji:

Oh, sure, trackstar. Last night you're all "...after i posted this I am short again from .70, a bit of manning up on my part after typing that post. half position, no stop overnight, see yall in the morning!"

But now that the trade's moved like a POINT in your favor you're all, "...stars are lining up on this crude short."

Don't you know I trade based on stars lining up? Why didn't you tell me that last night??

:D
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A point is nothing, I daytrade here in the journal for fun. None of my bread and butter positions are day trades.

Keep things in context. Ive been shorting this rally for a while due to monthly and weekly chart indications. Now the daily has finally come to agree.
 
Quote from trackstar:

A point is nothing, I daytrade here in the journal for fun. None of my bread and butter positions are day trades.

Keep things in context. Ive been shorting this rally for a while due to monthly and weekly chart indications. Now the daily has finally come to agree.
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What are you seeing in a weekly chart that says sell?
 
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