BO YODER: your trading plan post was and is a gem of a post. I have learned that one of the secrets to successful trading is trade criteria, triggers and discipline.With these three profitable trading is inevitableSo my congrats to all traders who approached todays market with the same game plan.
Days like today- arrghhhhh!!!
- Thread starter janko
- Start date
Today I waited until that beautiful sustained rally about 10:30 and then said to myself "okay, now", made a single trade, made my nut in about five minutes, turned off the computer and took a nap. Was thankful and figured why press my luck. If I'd been greedy I probably would have pissed most of it away.
I consider myself a fairly intellegent individual and having been around for a few decades, I thought I knew myself fairly well. Trading has changed all that. I know how to trade. I know the setups. I know the rules. I know beyond a doubt that they must be followed religiously. I know it is suicidal to short new highs but I did it several times Friday watching in disbelief as my hand moved, of its own volition, to the mouse and clicked. The only conclusion I can come to is that I have been possessed by some demon. I need stronger medicine than Mark Douglas. Any priests on the board?
ps Excellent point about the trin Ditch. I used to keep it on the screen but for some reason had omitted it on my present setup. Thanks for the reminder.
ps Excellent point about the trin Ditch. I used to keep it on the screen but for some reason had omitted it on my present setup. Thanks for the reminder.
janko...
I trade the Eminis and QQQ exclusively.
In reference to the NQ emini...every morning I review my trade methodology to prepare me for the first trade.
Friday morning via the ALL SESSION settings...
(I prefer ALL SESSION settings because without them you'll see those infamous GAPS between yesterday's trading close and the current trading day open...these GAPS more often than not are misleading and mess up a traders indicators in the morning sessions)...
using the 1min chart and 3min chart...if any of these time frames has my Bollinger Bands and my Price Exponential Moving Averages (10eMA, 50eMA) above the 200eMA at 0930am est...my initial bias is Long.
Note: Via the 3min NQ chart (ALL SESSION)...the above did occur.
However, this doesn't mean I'm going to go Long.
What it really means...if I do see a Short trade setup signal...I reduce my number of contracts to control the risk...if I see a Long trade setup signal...I go with the normal trade size (contracts).
Vice versa for the opposite situation.
Simply...what I'm saying is this...If you are a discipline trader and when you get a trade signal via what ever criterias that has proven to make you money regardless if the market is going up or down...DO NOT HESITATE AND TAKE THE TRADE.
If it results in a loss...its part of the game and you can walk away from the loss knowing you followed your trading plan.
If it results in a winner...don't pat yourself on the back too long and start preparing for the next trade.
Now...reviewing your own trade methodology (indicators, stop/loss strategy, profit-target strategy, risk management and so on)...review similar days like this past Friday to see how you did.
Look for any deviation from your trading plan on Friday from previous trading sessions under similar conditions that morning.
I just did that this weekend and saw similar trading patterns via my own indicator setup and price action in the A.M. for the NQ via the 3min ALL SESSION chart back on...May 17th Monday, May 14th Tuesday (questionable), May 8th, Wednesday...I'll stop there with the days for review.
janko...look at those days above I just mention to see if you had similar difficulties via your trade record. If so...then you know have something to correct (fix).
If you did well on those other similar-like trading days...applying the same trade setups...
don't sweat it because you followed your trading plan.
Also...you said something about decreasing volume. When it comes to the Eminis...decreasing volume is not a criteria in any of my trade setups on days like Friday...its a misleading indicator...only spiking volume that helps prepare my Short setups has merit with me.
How did I do this past Friday: 4 Trades...3 winners and 1 loser...all Short positions.
Did I stick to my trading plan...yes.
Had I not...regardless to the info on the winners and losers...it would have been a self-defeating day.
Note: On Friday...I did get 3 Long trade setup signals via my own trade methodology after 11am est.
Why didn't I take them? (taking a shower, talking on the phone to an insurance guy and making travel plans with a travel agent).
NihabaAshi
This is something I've used for a while now and has been helpful to me in determining the open range and daily direction.
http://www.daytradersaction.com/education/high5synth.asp
There are two additional tabs at the top on the same subject.
fwiw.
Bsulli
http://www.daytradersaction.com/education/high5synth.asp
There are two additional tabs at the top on the same subject.
fwiw.
Bsulli
Regardless of the common wisdom about shorting new highs, I still think that is a bull market philosophy, predicated exclusively on the fact that there is great BUYER momentum and not the simple fact that there is alot of COVERING momentum...
So many of the once tried and tested rules that seemed like gems of advice 3-4 years ago can just be thrown out the window...This market is sell into rallies, buy into multi-day breakouts lower...Regardless of what we all think is correct or proper or the RIGHT thing to do...The reason why everyone wanted to sell yesterday is because we have seen for more than 4 months now that every extended one day rally gets reversed...And that the very best entries have occurred, IN THE PAST, near the close of the one day rally, when everyone has shorted all day long and then decides not to carry a losing position overnight or over the weekend...But the difference between this price action in a BEAR market and this price action in a BULL market is that the people forcing the market higher are the unwilling victims as opposed to the active participants...I think that is kinda what separates the bear market from the bull market anyway, it is just a constant series of exploiting those people on the wrong side of the trade over and over again...
Vulture
I agree up to a point. I still think it is a mistake to short a NEW high(over yesterday's high). I will short the first failed test of a new high in a heartbeat but the majority of times that I don't wait for that test I get burned. This almost always happens when I go into the day thinking I know whats going to happen. The market is the greatest teacher I've ever had but she wields that ruler with no mercy.
I agree up to a point. I still think it is a mistake to short a NEW high(over yesterday's high). I will short the first failed test of a new high in a heartbeat but the majority of times that I don't wait for that test I get burned. This almost always happens when I go into the day thinking I know whats going to happen. The market is the greatest teacher I've ever had but she wields that ruler with no mercy.
janko,
Sorry about that. I have the dates posted incorrectly.
They are the following...June 17th Monday, May 14th Tuesday (questionable) and May 8th Wednesday...via the 3min all session chart for the NQ.
Thus, I typed May 17th instead of June 17th.
NihabaAshi