Flash's Self Improvement Trading Journal

Quote from Girlpower:





?????????????:confused:

best

Natalie
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Meaning I have nothing to add.

Except possibly that it's easy to confuse chasing price with trading trend. If you're going to trade trend, you have to be as exacting in defining what it is you're looking for and what you're going to do with it as you do when scalping.

Most traders don't want to do the work of creating strategies and plans and testing them. They'd rather "feel" their way through the market day. Maybe that's something everybody has to get out of his system. But the sooner, the better.
 
Quote from dbphoenix:



Meaning I have nothing to add.

Except possibly that it's easy to confuse chasing price with trading trend. If you're going to trade trend, you have to be as exacting in defining what it is you're looking for and what you're going to do with it as you do when scalping.
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Good point. It's important to know when to enter on a pullback. Not too late and not too soon. This basically means having some well defined entry criteria and sticking to them.
 
This is a nice journal, so please let's keep it that way. No personal attacks, etc. Thanks.
 
Quote from Flashboy:

Also want to point out..

That I occasionally trade currencies.. and only enter on pullback to the 20 EMA..

and these trades usually work out great.. mainly due to the currencies trending the way they do...
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Jeff,

Out of curiousity...

if your able to recognize what a trend is (whatever that definition is for you or anyone else) in currencies...

how come you just don't sit back and wait for similar setups in the Eminis even if it requires waiting (having lots of non-trading days) until you see something similar in the Eminis as your able to do in currencies.

???

Note: I don't trade currencies...so I have nothing to compare charts with.

Also...to prevent philosophical discussions...

ask traders to explain something to you via charts especially when your asking them questions about something they have said to you that may not be clear to you via just words.

Jeff...what's your metodology for trading White Hammers?

I asked because you said you used the 5min chart in that White Hammer signal...

Quote from Flashboy:

Bought at 985.00.. 9:53 am

stop 981.50
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9:53am est is 3mins after 9:50am est and 2mins before 9:55am est...

(White Hammer completed itself at 9:50am est)

Simply...you enter your Long position in 2mins into a dark/filled candlestick that had already produce a long upper shadow with 3mins remaining as it confirmed the below with every passing second...

resistance...not enough buyers...sellers in control...3mins to prepare for plan B.

Did you have a plan B?

Also...this is not an issue of hindsight forecast...

its an issue if you understand White Hammers and what candlesticks are doing just prior and soon after.

I posted a chart with some info I hope you have time to explore. I would have written more info on that chart but started running out of room.

I want to only post it on that chart in not in this message post to encourage you to print out that chart.

P.S. I make mistakes myself in trading White Hammers. However, the key is stop/loss placement to minimize the loss when wrong along with recognizing the reason it failed to make a quick decision to reverse the position as the stop is taken out...

Plan B for that type of White Hammer.

(Don't be staring at your profit/loss screen and miss a good trade reversal signal from one position into an opposite position when stops are hit for this type of White Hammer)

Realities of trading.

NihabaAshi
 

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Quote from Girlpower:



So? - you don't need to capture the entire move to be profitable...



You don't need to catch the beginning of the move to have a low risk profitable trade.



That is a common misconception.

If the move is an up move, unless it is very fast indeed, there will usually be a pullback from one reasonable time frame bar to the next. Look at the 10 min candles. The close is not usually the high, and the low of the next bar is usually below the close of the previous bar. I call this the overlap. down moves display the same characteristics most of the time.

Is this not another entrypoint with lowish risk associated, and clear failure point and a good target to place on the trade?

The there are all the reaction pullbacks along the way which you can find in almost any timeframe, aren't they good entry points?

The market doesn't need to be moving very fast in any direction either. The price can be creeping slowly upwards or downwards via a series of highers and lows. Are they not also good entry points with lowish risk, clear failure points and good tragetting?

Have another look and identify all the possible entries into the trends as they occur - you will be amazed how many there actually are that have an acceptable risk/reward associated.

Best

Natalie
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Natalie,

I understand what you are saying..

Its hard for me to put on a trade once I feel Its moved a good bit. because it seems to correct most of the time then continuing.. so I try to wait for the correction

can you give me an example of yesterday's 7/31/03 2 moves down where you may have entered .. if you would have at all..

thanks
 
Quote from electron:



Good point. It's important to know when to enter on a pullback. Not too late and not too soon. This basically means having some well defined entry criteria and sticking to them.
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Agreed - this is where using a small timeframe chart inside a larger one really makes a difference. From the large one, you can identify the trend easily and whether the trend is running out of steam. from the small one you can identify the entry/exit points, failure points and use tight stops.

There is no need to use a 3.5 - 4 points stop if the entry point is correct. jeez. That's 14-16 ticks. The price needs to run a long way against you to cover that kind of distance and it means taking on a lot of risk for the potential reward. It's enough to be a minor trend all by itself...

best

Natalie
 
Quote from electron:

Good point. It's important to know when to enter on a pullback. Not too late and not too soon. This basically means having some well defined entry criteria and sticking to them.
More...

Exactly. The most common failing I've found amongst trend-traders (God love 'em) is that they have no clearly-defined criteria to distinguish between pullbacks and reversals, and the tactics for trading each are not the same for both.
 
Nihabashi,

That post and chart was worth starting this thread... great points..


my method for trading white hammers??

if my stochastics is oversold.. and clear white hammer is formed.. like the one earlier today..

I try to buy within the body of the hammer.. usually at least 2 ticks below the top of the body of the hammer..

I've always been putting my stop 2 ticks below the shadow of the hammer..

I see now in your chart.. never thought of looking at the candles prior to my entry candle .. to see if they have long upper shadows.. I will go back through my charts this weekend and see if I can see that occurence elsewhere..

the next candle after my entry went up before going down.. you said it formed a dark body I believe.. I'm not sure we're looking at the same thing..

now I can see with your chart how/why I should have exited this trade.. and Natalie's point about the length it traveled to stop me out being a trend in itself..

You stated the candle after my entry with its long upper shadow showed there was still resistance and that a short trade could have been taken.. would you actually enter short in this scenario???

thanks again for the help guys/girls..

this is why I started this journal.. hope others are gaining knowledge from it as well..

And nihabashi you're right.. a picture of the chart attached with notes is much easier to read and understand and see it in front of you.. thats why I post them everyday..
 
Quote from Flashboy:



Natalie,

I understand what you are saying..

Its hard for me to put on a trade once I feel Its moved a good bit. because it seems to correct most of the time then continuing.. so I try to wait for the correction

can you give me an example of yesterday's 7/31/03 2 moves down where you may have entered .. if you would have at all..

thanks
More...

Sure. Duly attached

best

Natalie
 

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