Iterative Refinement

[guavaman]

Quote from Spydertrader:
For those using the drill today, the 12:15 & 12:20 bars should have worked out rather nicely - about 17.5 points in ten minutes. That sure makes up for a bunch of errors. [/B]

Unfortunately for me I was on "break" (union rules )due to the low volume preceding that.

 

[WGTrader]

I too missed the big run up. I was having lunch. I wasn't expecting a move until after 1:00. Oh well, I'll wait for the next train!

 

[TIKITRADER]

I was not trading till late today, when I noticed price retracing towards right trendline around 2:20pm. Waited for a point three to form. Entered the 2:30 bar towards the end and washed with a tick loss.
Patiently waited till the 2:35 bar gave confirmation of increasing volume and entered.

Well, I exited on this bar and took profit, and I just posted I need to do my best to stay true to the method. Doing so would have kept myself in a very nice run.
I have not seen such a clean move in a long time like that, and I exited to early.

Although very happy that I am consistent, I need to let the channels play out!
The drill Spyder posted will be a very good addition to myself and my feelings. I can only benefit from such good advice.

 

[FerdinandAlx]

Quote from FerdinandAlx:

Today I made my first trade in a Hershey stock.

To test the waters I decided to start out small. I bought 1000 EMKR @ 12.94.

I sold EMKR today for a 5% gain. Volume seemed kinda flaky so I decided to get rid of it. I'll buy back in tomorrow if I see the stock move up in my unusual volume list.

I've also recently moved from being a papertrader to being a payper trader in the ES and I'm seeing pretty consistent profits .

Good trading to all, here's my ES chart for today:

 

[Pr0crast]

.

 

[guavaman]

A strange day indeed.

I began the day by trying to implement the drill suggested by Spyder. At some point in the morning I decided I did not have sufficient understanding of exactly what he suggested so I put off the challenge until tomorrow after seeking more info. Thank you Ivob .

After this decision I continued to trade and was under the impression that despite a few set backs and frustrations I was doing pretty well today. Not so. Since I don't check my P&L I wait until the EOD to check how I did. Fully expecting a double digit positive point day I was a bit dismayed to find that I actually lost six points. Such a bummer . If I didn't know better I would swear that trades operate on some type of multiplier Negative trades X 1.75) and the positive trades X .65 . Honestly it seems this way.

Two of the frustrating events for me today were highlighted in the pink boxes. If it is visible, the thick orange lines represent what I thought were valid PT3 channels (the thick orange lines were the RTL'd of it). In both situations I was in a long position. The fist box I was long from the 12:00 and the second I was long from 14:05.

Because I had reverted into the "trigger happy so exit at the first sign of a retrace" mode; I exited both trades when the RTL (thick orange line) had been breached to the down side thinking of course I was on the wrong side when this occurred so I need to cut the losses short (so to speak). Again, not so. In both cases the market rocketed up without me. Boo hoo.

 

[Spydertrader]

Quote from guavaman:

Two of the frustrating events for me today were highlighted in the pink boxes. If it is visible, the thick orange lines represent what I thought were valid PT3 channels (the thick orange lines were the RTL'd of it). In both situations I was in a long position. The fist box I was long from the 12:00 and the second I was long from 14:05.

Box One

Note the Lateral Formation which indicates Price still maintains a Left to Right Traverse. As long as Price stays within the Lateral Boundaries (which it did), the market has not yet reached its 'valid Point Three' Transition Point. While I can understand how one might 'see' the previous bar as the 'valid' Point Three, the next Bar's failure to exit the Lateral Formation provides a clear signal to hold.

Box Two

A Sym Pennant - followed by an Outside Bar. One of the more difficult challenges facing a learning trader is learning to 'see' when sentiment change occurs within a particular Bar, thereby creating an Intra-Bar Gaussian Shift. Fortunately, when an Outside Bar forms, it also provides a solution. With time and experience, you'll be able to spot the acceleration of Price and Volume movement which occurs before the formation of an Outside Bar. Until then, applying the If1-If2 Solution - specifically on an Outside Bar - places the trader back on the right side of the market.

- Spydertrader

 

[ehorn]

14 Trades, 12.00 points, 35% ATR

I was looking for an uptrending day today and, well, we got it Though I must admit, I remember thinking the day could be an inside bar on lower volume also but that was soon dismissed (i.e. 12:20pm).

I was 'see'ing the morning well and anticipating well (but I find that when I feel like a have a good beat on things - I am early on my reversals). I was quite early on my first reverse (held through some pain as bar 13 moved against me (though on low volume). I sidelined the short at 11:02AM for a profit of 9 points after 2 trades in the morning.

Got back at 1:20PM (feeling cocky after the morning session) to see I missed a really nice move! So I entered (on the wrong side) then washed for a painful loss (-4.25) Got back on the right side and was anticipating bar 58 to dip below the RTL forest level channel for a bit before resuming the uptrend (Well that did NOT happen) and by the looks of it I was not alone because that bar shot up VERY quickly (strength took me by surprise). I reversed when it broke the lateral formation I have annotated. Being shaken by that move I sidelined to regain my composure. Also, I had another bloody loss in the afternoon (-6.25).

So I go from feeling like "The Man" in the morning to getting put back in my place by mid afternoon.

But I managed to pick up a good chunk of bars 60-63 and carve bars 70-75 fairly decently and made back some lost ground and then some. I have attached my ES5M chart. My plan for the next several sessions is to set aside my mode and focus on the drills Spyder has outlined. (Also I will not eat Mexican food for lunch anymore while trading)

As a side note - I have not had many opportunities until recently to watch the market for an entire session - and this much I can say... It is mentally draining!

Spyder, how long would you say it took to develop the mental stamina to maintain solid focus for the duration of a session?

 

[Spydertrader]

Quote from ehorn:

Spyder, how long would you say it took to develop the mental stamina to maintain solid focus for the duration of a session?

When I first started monitoring, I'd grow mentally drained by lunch. I'd even feel as if I needed a nap of all things. Slowly (over a period of 2 to 4 weeks), I built the mental stamina to monitor all day long.

Some things that help ...

Take breaks. You'd be amazed at how 5 minutes here or there refreshes and reinvigorates. Who cares if you 'miss' a bar or a trade. Another train will be along shortly.

Power down. Even when it isn't break time, you don't need to have laser-like focus for every single minute. Log onto the ET chat room, play some solitaire, post something in the thread or call a friend on the phone - all the while keeping one eye on the market. This serves two purposes. One - only focusing 'half-way' helps conserve mental energy, and Two - doing so helps you to avoid over-analysis and over-trading.

At the end of the day, leave the computer, market and trading behind. Go spend time with family, friends or head to the gym. Your mind needs time to decompress and recharge. Give it the time it needs.

The entire process (while hard work) should also provide some fun along the way. Don't let yourself turn it into a chore.

- Spydertrader

 

[ericta]

Quote from guavaman:

A strange day indeed.

I began the day by trying to implement the drill suggested by Spyder. At some point in the morning I decided I did not have sufficient understanding of exactly what he suggested so I put off the challenge until tomorrow after seeking more info. Thank you Ivob .

After this decision I continued to trade and was under the impression that despite a few set backs and frustrations I was doing pretty well today. Not so. Since I don't check my P&L I wait until the EOD to check how I did. Fully expecting a double digit positive point day I was a bit dismayed to find that I actually lost six points. Such a bummer . If I didn't know better I would swear that trades operate on some type of multiplier Negative trades X 1.75) and the positive trades X .65 . Honestly it seems this way.

Two of the frustrating events for me today were highlighted in the pink boxes. If it is visible, the thick orange lines represent what I thought were valid PT3 channels (the thick orange lines were the RTL'd of it). In both situations I was in a long position. The fist box I was long from the 12:00 and the second I was long from 14:05.

Because I had reverted into the "trigger happy so exit at the first sign of a retrace" mode; I exited both trades when the RTL (thick orange line) had been breached to the down side thinking of course I was on the wrong side when this occurred so I need to cut the losses short (so to speak). Again, not so. In both cases the market rocketed up without me. Boo hoo.

are you trading SCT?