jasinhbca's quest for discipline, knowledge & profits

[Alpha Trader]

And I like No Doji's "Traps", which are often failures of some type. It is where the market sticks it to the uneducated.

@Handle123 most times a lot of experienced traders and algos actually enter these trades and get jammed too, but react fast enough to turn the small loss into a very profitable trade.

When the trade turns into a "trap", the following ensues most times (just my humble opinion based on background research):

1) Since these trades can be so subjective, most algos will bail out and not take the other side. This causes liquidity to dry up in the direction and spill over the other way.

2) Astute traders recognize this very fast and will cover their position AND add a DOUBLE/TRIPLE position in the other direction, since the probability of the trade is even higher now. This further draws out liquidity and enhances the momentum in the other direction.

The timeframe between 1) and 2) is only a few seconds, but is significant in the context of things and just goes to show the advantage that's algos hold over discretionary traders (and it is a credit to you for having diversified your trading in this sense).

3) Once this is done (the few seconds window), whoever is still sitting in the trade is getting jammed.

The longer one stays in, the worse it gets. Due to a "trap" forming, the move in the opposite direction happens fast and with decent-good momentum. Eventually, most bail out with a loss, which gives these kind of trades a very good R:R (as most times 2-3 legs ensue) and probability.

 

[Handle123]

Thank you, well explained and I am still learning.

 

[Handle123]

Done for the day, Starbuck time.

 

[Alpha Trader]

I am still learning.

Aren't we all @Handle123

The day we think we are all that is the day we start our downwards journey.

Hope all is well on your side.

 

[Handle123]

Aren't we all @Handle123

The day we think we are all that is the day we start our downwards journey.

Hope all is well on your side.

Doing well any time I don't have to sit here too long to make my daily nut. Just don't have desire any more to be here longer than I have to, but when you throwing good quantity of lots, don't have to trade long. Say you have a goal of $200 per lot each day times 253 trading days is $50k times 20 lots, you making good money, just don't lose often. Doesn't matter how you make $200, two $112.50 trades or 25 one tick trades, net $200 if you retail. I know two guys their daily nut is $100 net, they throwing huge numbers 500-1,000 at trades, they take 1-2 trades then go play golf no later than 45 minutes.

You just need one pattern to do well, and learn when not to take trades and when price telling to do something. At "walls" take profit and don't fight walls to entry, let the others fight the walls.

I am just more interested in learning to trade stock/ETF options and trading them, like when other people's money decays and I am the banker.

 

[Alpha Trader]

Doing well any time I don't have to sit here too long to make my daily nut.

Most days I'm sure you're done by the time most people get into their 9-5 jobs. It truly is a blessing.

I know two guys their daily nut is $100 net, they throwing huge numbers 500-1,000 at trades, they take 1-2 trades then go play golf no later than 45 minutes.

They found life's secret sauce!

You just need one pattern to do well, and learn when not to take trades and when price telling to do something.

Wise, wise words. Simple advice, yet rarely heeded.

 

[jas_in_hbca]

Quitting early. Taking the $$ and calling it a day.

Again missed the surprisingly big move in CL today while watching NQ chop around a bit. CL had some clear signals for me when I did start watching so most trades there today.

Overall, I did exactly what I wanted to do. Patient waiting for trades, gave trades time to work, exited one with a loss (CL) and immediately (& correctly) reversed to capture a nice profit. My targets were too low in CL today. That's an observation not an error.

10 trades today. 1 NQ trade I did not give enough time. Took a profit when looked like a swing was going to hold. That was about the only mistake. Happy about that.

Trading was relaxed today.

+48 CL ticks
+1.25 NQ pts

 

[Iwilldoit]

Thank you for taking time out of your busy schedule to reply. I really appreciate it.

Al Brooks is very difficult. Read Bob Volman instead, IMO.

I have read in someone else's post, that they also deem Al Brook's material as "difficult". Are you able to explain how it is difficult?

You're not ready to sim trade until you come up with a Trading plan. Lots of ET posts about trading plans.

I have a set of rules for every b/t. Rules for Entry,Exit,Stops etc.

If you keep testing the Handle method you may find you don't even need the other books.

Regardless of how successful I will become, I will never stop learning and improving.

I have read most of H123's posts, and will read every post in this thread as you recommended.

Thank You Jas, you thread has indeed been very inspirational.

We will be in touch,

IWDI

@jas_in_hbca

 

[schizo]

My current goals are to:

1. continue to have patience in trade selection

2. complete my trade worksheets which will track my entries, exits and mistakes

3. Review the days chart to increase my knowledge of PA and better understand my entries. The better I understand my entries and exits the less hesitation on execution I hope to have.

4. Hold my winners longer

5. Remember to treat each trade independently. Sometimes I'm taking quick profits just to get back to even for the day despite PA to the contrary.

Interesting thread, albeit little too long (in length) to stomach in one sitting. I would like to know if you managed to overcome the above difficulties you've laid out at the outset of this thread. Needless to say, these tasks are pertinent to all traders--have in the past and will very likely continue into the neverending future.

 

[Handle123]

10 trades today.

+48 CL ticks
+1.25 NQ pts

You bought up a stat that many overlook in their back testing and stat on getting stats by the hour. Some hours have very so so returns on trade. And others have the best. When I backtest anything, I delete out top/bottom 10% of the trades as I am searching for best averages to seek best protective stops and first targets. What many "newbs" don't look at or consider is ave per trade. In day trading unless you trading off the Dome and doing 200 trades a day, less trading is best, the commissions really add up if you are retail, ten trades can be $50 in Crude Oil. So that is a half a tick, have to always consider how you doing in hourly on loss percentages as when added to commissions, it going to be even more trades to get to breakeven.

So today you ave 4.8 ticks per trade and 4.3 ticks after commissions. This shows how near perfect you have to trade spread out over handful of hours and as hours goes by, more drained you become. I prefer to have a goal on any market I trade, make that goal and quit, I want less trades and much higher ticks per trade counting wins/losses and breakevens, the lower the ave ticks, more importance to trying to get plus one tick on breakeven trades, otherwise breakeven is a losing trade.

Keep up fine trading Jas and journal, before you know it be making $10k weeks.