Good books on futures daytrading/scalping?
- Thread starter wartrace
- Start date
It's very simple...not complicated.
His method works during a specific 5 hour duration. I'm not lying...that's what he said.
Further, he doesn't need to go get a PhD to know when to use the method and when not to use the method. He just needs to keep reviewing his statistics that show him that he's not profitable in the regular trading session (never ignore your own stats).
Some methods aren't designed to work in EVERY type of price action and some trade methods do not perform well if used all day...especially if he's not automated. Therefore, if one (a discretionary trader) knows when the method is profitable and when its not profitable...
Kind'uv stupid to change the method when the trader only needs to change himself involving how he interacts with the market. In fact, we got too many journals here at ET where traders are pulling in some good coin (several thousand per day) in the morning session to only consistently give it all back in the regular trading session.
****We got too many traders out there "addicted" to trading instead of just trying to be profitable.****
Just think about all those profits per day if one can master their psychology and only trade when they know when they're most likely to be profitable. Seriously, why trade a time duration you know that statistically you're going to give back all your profits.
Yet, if you're suggesting he gets an "additional" method suitable for the regular trading session to go along with his profitable trading method that's suitable for 3am - 5am time duration...
Nothing wrong with that advice. Until then...the problem is him if he continues trying to apply his trade method that's only suitable for trading in a certain type of market condition before all the volume and volatility shows up.
P.S. If he has backtesting stats that shows he "should" be just as profitable in the regular trading session...I will still say the problem is "still him" because he's not executing his trading plan properly to achieve those profitable results that his backtesting gives hints that he should be profitable in the regular trading session. Thus, the problem is still not the method.
Edit: Meant that he said from 3am - 8am (a 5 hour duration).
I'm just suggesting there's no way to know if his "method" (assuming he has a method and isn't just trading by the seat of his pants based on some ideas) is valid during his pre-market hours because he said he's only been at it a week and had a few days where he was up during those hours.
I'm suggesting we only go by what he tells us instead of trying to "guess" at other things.
He's profitable in the morning and not in the regular session...his words...not my assumption unless you have some sort'uv intuition that he's not telling the entire truth via your "there's no way to know" statement.
Until then...enjoy the profits and do something else (play golf, go skiing, spend extra time with the family, read a book, go exercise, go for a long scenic walk...anything not trading related) during the time periods he has stats that shows he will perform poorly when trading in a particular market condition not suitable for his trade method.
I agree. He can't have much in the way of stats after only a week, and his view that he does "really well" during a certain time period doesn't mean much if he has no means of determining "really well". Without knowing exactly what his method is, the thread winds up being another one of those in which a variety of traders make suggestions based on insufficient information and the OP learns nothing. If he has no thoroughly-tested and consistently-profitable trading plan, a library of books on psychology aren't going to do him much good, if any.
I agree that since I have only been at it a week that my perception of "doing well" is meaningless since there is no proof of consistency yet.
I have a "basic" trading plan I am testing however it doesn't seem to work in heavy volume. Since it doesn't seem to work I decided i need to do more research.
I have a "basic" trading plan I am testing however it doesn't seem to work in heavy volume. Since it doesn't seem to work I decided i need to do more research.
Quote from NoDoji:
Although CL is a technically beautiful instrument for day trading/scalping, it can quickly take you down with the smallest lapse of discipline.
I recommend mastering Bob Volman's Forex Price Action Scalping using a 1-min chart/1-min 20EMA during the pit session hours.
Once you've done that, you'll be able to put together an awesome trading plan
Also, study anything by dbPhoenix here on ET.
Thanks NoDoji - I will check that out.
Seriously,
If you're now saying that your original statement about being profitable in the morning is a "meaningless perception"...
Why would your prior statement about "doing poorly in heavy volume" be anything more than a "meaningless perception" ?
My point, you gave an earlier definitive statement about when you're profitable and when you're not profitable. Regardless to my views of what you're now saying...spend some time in ET journal section to quickly learn what happens when someone starts "tweaking" a profitable trade method that's profitable in a specific type of market condition in comparison to trading it in a market condition that "seems" greener with those big swings and big continuation price action to only find out that their consistent losses in those other types of markets was due to discipline issues and failure to follow the trading plan. Thus , its the trader...not the method.
My point, you shouldn't be worry until your method "stops" working between 3am - 8am est. Until then, continue enjoying your profits between 3am - 8am est regardless to the fact that you've just started trading.
Then again, market conditions are always changing. Therefore so do trade results which is why we as traders don't have the exact same trade results every trading day. Thus, I'm suggesting that your method one day may start being profitable in the regular trading session (the field that seems greener to you) and stop working between 3am - 8am due to a change in market conditions. When that happens, what will you do:
1) Tweak your method (make changes to it) again just because it's not able to work in EVERY type of market condition
2) Abandon your method and try something new
3) Not use your method between 3am - 8am
I'm not being a wise butt but I've seen too many traders here at ET (especially in the journal section) make a lot of profits in a specific type of market environment to only abandon their methods or make changes to it because it didn't work in some other market condition that seems greener over there sort'uv speak...resulting in a losing trading day by the end of the day.
Don't fall into that newbie trap as so many before you have done via choosing the above #1 and #2 in an effort to try to outsmart every type of market condition instead of just trying to be profitable.
By the way, just a reminder, most profitable traders know when not to trade instead of making changes to their trade methods. Simply, they don't trade in EVERY market condition especially when they have statistics that tells them when not to trade.
Also, you mentioned overtrading. That's usually a statement to imply you're taking trades that's not part of the trading plan because if they were part of your trading plan...you're trading exactly the way your trading plan dictates. Thus, its not over trading.
P.S. You've been here at a trading forum since 2006 although you've only been paper trading for a week now ? Surely, you've had time to read ET's journal section.
P.S.S. I go long periods during the trading day without a single trade. Not because I'm not getting any trade signals. In contrast, its because I suck at trading "within" those particular types of market conditions. This practice has consistently allowed me to close my trading day at a profit even though I may not have reached my trading goal for the day.