Ken's RED days: Lessons Learned

KCalhoun

KCalhoun

GOAL: To help avoid errors and reduce stops.

  • 7/10 PnL -$478
  • 30+ trades,, I overtraded choppy open Friday
  • Avoid inside days where S&P opens in middle of 2day chart
  • Focus on 2day high breakouts and gaps vs bottomfishing inverses
  • Charts like WIMI CGC were strong
  • Done right: hedged TZA with TNA; progressive downscale; avoided lunch chop
 
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With all due respect, Ken, you are too attached to your list of garbage inverse ETF's and 3x ETF's.

Meanwhile 10 shares long of TSLA would have made you $1500 today.

NFLX also an all day runner.

If you would focus on the FAANNG stocks you'd probably find more opportunity so long as you would be willing to go with the trend rather than fight it. TSLA can be hard to borrow depending upon your broker, but the options are very liquid. The others are easily traded from both sides.

I believe you said you were trading a small account. Focus on the right list and your $25,000 could be $50,000 in August if this market keeps up. And if it doesn't then we play the same list from the short side.
 
Gaslight Capital said:
With all due respect, Ken, you are too attached to your list of garbage inverse ETF's and 3x ETF's.

Meanwhile 10 shares long of TSLA would have made you $1500 today.

NFLX also an all day runner.

If you would focus on the FAANNG stocks you'd probably find more opportunity so long as you would be willing to go with the trend rather than fight it. TSLA can be hard to borrow depending upon your broker, but the options are very liquid. The others are easily traded from both sides.

I believe you said you were trading a small account. Focus on the right list and your $25,000 could be $50,000 in August if this market keeps up. And if it doesn't then we play the same list from the short side.
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Sincere thanks, I completely agree.. just what I need to hear. I'll refocus on what I do best which is daytrading momentum runners vs inverses.

Old habits are hard to let go of, I'd done well with them in March. I'll try to stop trading them for now.

Right re FANG stocks, often great for intraday swings. Good insights -- thanks.

In my chatroom I post lots of winning alerts for my traders to learn from but I miss trading them often because of my preoccupation with the ETFs. I'll change that, it's time. I appreciate your intelligent, thoughtful comments.
 
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KCalhoun said:
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Old habits are hard to let go of, I'd done well with them in March. I'll try to stop trading them for now.

Right re FANG stocks, often great for intraday swings. Good insights- thanks.
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Old habits hard to get rid of? Like holding onto longs? I dropped that habit back in March. It got me nowhere fast, as the market did it's thing.

Now may not be the time to completely stop the idea of trading inverses, what with all the crazy coming soon through H2 2020. You could be stopping your shorting of the rise at a peak, as I stopped longing the drop right at the bottom.

Crazy days we live in.
 
KCalhoun said:
GOAL: To help avoid errors and reduce stops.

  • 7/10 PnL -$478
  • 30+ trades,, I overtraded choppy open Friday
  • Avoid inside days where S&P opens in middle of 2day chart
  • Focus on 2day high breakouts and gaps vs bottomfishing inverses
  • Charts like WIMI CGC were strong
  • Done right: hedged TZA with TNA; progressive downscale; avoided lunch chop
More...


talk about day trading US index futures on 10 Jul 20.

During the early US session, ES NQ RTY movement was rather chaotic and indecisive.
In fact, its movement was already chaotic and indecisive during the earlier Asian and Eur sessions.

I made some losses.
Fortunately I traded with reduced quantity, and stopped trading US session earlier.

overall, 10 Jul was not a good day for trading index futures,
but a good day for those who traded crude oil and copper futures.
 
Ken:

Greetings! I hope you are well. I think I mentioned this before, go read "The Zurich Axioms," particularly Axioms 1 and 2. Always play for meaningful stakes! Best wishes!
 
KCalhoun said:
Right re FANG stocks, often great for intraday swings. Good insights -- thanks.

In my chatroom I post lots of winning alerts for my traders to learn from but I miss trading them often because of my preoccupation with the ETFs.
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Take the ETF's off of your watch list.

As long as you continue to pay them any attention they will handcuff you.

Also, listen what you said: "I did well with them in March." March was four months ago! We are now in the second greatest bull market of the last 20 years, and you are stuck on inverse ETF's? TSLA is up 600 points in nine trading days and you are waiting for a collapse that has already come and gone so you can make a few points trading an inverse ETF? Think, Ken, think.
 
Excellent points; thanks to all.

It comes down to rules, best practices and DISCIPLINE to follow through. Such as:

  • Only trade gappers and 2day high breakouts
  • Avoid inside days and charts
  • Don't do any short bias trading when TRIN <1
If I'd followed my rules I'd have skipped ETFs today. I need to kick myself, because I know better.

Great tip gaslight re taking them off watchlist, I'll try that. Besides, TVIX being delisted should tell me something...... new rule for me is no more inverses unless s&p loses 3k
 
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Overnight said:
So basically if WarGames concludes with Joshua never learning how to play tic-tac-toe.

LOL! S&P down to 150 would be bad.
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KC, you like my post as if it is funny.

I am serious. S&P 500 down to 150 would be BAD.

 
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