It was a fun day. I Did call the day's top within a few points and was actually short at 9569 For some strange f'd up reason I only took 10 points profit... Cutting my profits short. I think I was scared that it would test the high again and stop me out.
It went all the way down to 9500 and better.
I was sort of in practice mode from what I am learning.
I will post screen shots and my tracker later. For now, how it played out (And this is from memory only) is the day's high was tested with no follow through on the volume, divergence in the TRIX, then it closed back below high, traded down so it was trading below the 50 SMA on the 3 minute chart, which then set up Another TRIX Divergence, confirmed by weak volume on the upswings, then smashed through the weak floor on it's way to 9500...
It was all over after that test of the high, no new bids found value at those levels - the sellers began to take whatever price they could get, and the buyers thinned out until a better value area was established, which was around 9500, the opposite end of the value area extreme.
I am grateful for my
-$71.40 day, since it just tells me that my strategy is not quite there yet, especially the exits. My entry method is pretty solid, have no problem picking several high/low swings throughout the day, even if I am only 50% accurate with 2+x my risk on the wins, that will do it.
It doesn't take too many 50+ point days on 1 contract to obtain serious returns. My passion is to master my method. These small loss days are just practice, I am not worried in the least about several more small loss days, as
I am practicing and perfecting my art.
As Luis said at swifttrade back in the day "All I want is consistent profits or consistent losses, nothing erratic, if you are a consistent loser, we just have to change a few things, or refine a few things and it will turn around". - That was from vague memories...
I am aware of the loss trap and the role it plays with traders who find themselves in a drawdown right off the bat. I am just determined to focus on consistency. Also with my present risk levels of 1-2% per trade a 20% drawdown is almost guaranteed.
At that point (20% dd) I will demo trade in order to continue practicing whithout eating away at my account. I don't mind losing money but if I can gain confidence and experience through paper trading then it seems like a great idea.
My goal is to iron out those bad habits that slowly eat away at my account, while practicing and refining my strategy.
I am interested in mastering my dynamic approach to the markets.
Van Tharp hasn't sent my psychological profile back yet, that should help!. I will post it so all can see into this traders mind and see an example of the power of the profile.
I am becoming very good at managing stress throughout the day, which was one of my weaknesses. The secret is in living a wholly balances and fulfilling lifestyle, maintaining a journal, meditating, healthy choices etc...
I am also becoming more aware of picking up on the day's major swings, and leaving the small scalp moves for the scalpers.
Ideally making 2-5trades/day with just 50% accuracy and 2x reward on the wins is what I am shooting for. It won't be long now baby!
I have a new hobby too, downloading mp3's off the internet, the legal way! haha. I am working to clear my Karma on all front's which includes replacing the 5000 songs that I had on my HD before it crashed with legit, bought and paid for music that I enjoy. I found a couple good sites but the following seemed the most solid. @ .09 cent's/track and around $1 for an album full quality, it seems illegal....
http://www.legalsounds.com/