Matcha's Dow E-mini Journal

Quote from Matcha:

Congrats on achieving 1,000 hours!
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Thank you Matcha.

Today was not an easy day to trade. I started out sticking to my plan to trade like everyone has been talking about - trading with the trend. I had 3 profitable long trades in the morning all on riding the uptrend, waiting after a pullback and counting the waves. I was up for about 6 ES points. I will try to remember and stay firm with these type of setups. But in the afternoon when the trend once again change from down to up, I started to steer away from my plan and traded all over the places, ended the day with 6W, 1 Scratch and 4L. Net after commission, I made $6! Enough for a few cans of Campbell Soups :D :D

I think one of my problem is when I lose a trade, I become very undisciplined, I try to recoup the loss and try to enter another trade as soon as possible without thinking through the trade first.

At the end of the day, I read my print out charts and most of the mistakes were quite obvious.

I am going to re-read the Chapter (10) on "Thinking like Sophie the cat" - wait for the best opportunity.... Making the High Probability Trades.

Have a great and profitable Thursday!

--po
 
Quote from ~~~:

To Matcha & PO.

It's okay for big sister to buy U2 a nice dinner and when you become CP, you can take big sister to eat dim sum & drink tea lol. Hey, i have good appetite, can eat many plates of dim sum and drink many cups of tea, so be prepare lol :D
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Thank you Big Sister!

I love dim sum, too! Will work hard to become CP!!!!!


Quote from Bolimomo:

Ha! LOL! :D :D :D

Of course there is anything the canned "shark fin" soup for USD $5 a can. Flavorful soup with corn starch and mung bean threads... LOL
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Ha Ha Boli! I think the $6 I made today can buy one can of Shark Fin soup. :D :D :D


--po
 
Quote from Matcha:


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However, with all the real data feeds in both brokers, they read different datas! An obvious example will be, yesterday on tradestation Trin chart, the trin stay below 0.7 all day long. But on TOS Trin chart, yesterday from 10.10-11.30, trin was above 0.7 below 0.85.
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Some TRIN calculations use the Nasdaq as reference instead of NYSE. But they usually use a different symbol ticker, like $TRIN.Q or something. Perhaps double check with TOS if they are using Nasdaq or NYSE.

The descrepancies probably don't matter that much. The key is to observe the relative state (bullish? bearish? neutral - choppy?). And also observe the trend of $TRIN over the course of the day (changing of the guard - from bullish to bearish and vice versa).

$TRIN is only one piece of the considerations. You need to see them and use them with other things.
 
Quote from Matcha:


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Although I like the way I am looking at bigger picture now to “accurate” my trades, I still need to go back study how to use them properly. I was a bit all over the place lately.

I think I should try to stay in one side of the trade now…. Maybe I could confuse myself less and take less “every valid setup” .

Today’s PnL: -119, 6 trades, 17% winrate
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It shouldn't be too hard to trade the futures today. I know you said not trading the first 2 hours. But if you were...

Take a look at the "bigger" picture. I always emphasize that.
DIA 7/14/10 5min.

See scribbled curves. This has been a tremendous up move for Dow/S&P for over a week. The bulls are not going to give up too easily. Note the nice up-moving 200MA (red curve). This morning we had a "gap" down. Overnight ES down move. It is potentially good for a long trade. Observe that in the morning... after the gap down... only a little bit. S&P around 10 points. Dow may be 80 points. It went to near yesterday's opening low. Double Bottom on the 5-min. On the smaller time-frame (1-min) it also double-bottomed. At about 7:00 am. Double Bottom is a bullish sign. If anything you should bet on long, taking Double Bottom as the signal. (Circle 1) 7:00 am is one of the reversal time marks.

Circle 2: Around 9:00 am... market ran for about 2 hours. Note: Double Top. Same high as yesterday's high. This morning was bearish. If anything you should bet on a short here, taking Double Top as the signal. Double Tops (and Double Bottoms too) are no coincidences. They are psychological areas that trick market participants to act in unison.

Bet on it that it will re-test the morning low. It did. Broke the early low a little bit. But the 200MA (The Chinese Wall in moving averages) held up price. The 200MA would be profit area. And if you want to bet, can bet on a reversal again to long.

You only trade one contract. (Small account). And you decided to day trade. (The most difficult kind of trading.) You need to be a choosy snipper. You don't have a shot gun. You have only a few bullets each day. Make them count.

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Quote from PatientOperator:

Thank you Big Sister!

I love dim sum, too! Will work hard to become CP!!!!!

--po
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If i am hiring now, you and Matcha sure will be selected coz u2 have the good attitudes :) Are you in California? I am going to NYC in Sept... if you guys are in NYC, we can meet in Per Se or Chinese restaurant ... don't worry abt the bill:D
 
Quote from PatientOperator:

I think one of my problem is when I lose a trade, I become very undisciplined, I try to recoup the loss and try to enter another trade as soon as possible without thinking through the trade first.
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I've done this often. The key after a loss is to wait very patiently for your next PRIME setup.
 
I want to leave you all with this thought. A quote from the Rocky Balboa movie. But I have paraphrased it as I can't recall the exact line:

Balboa: It is not how many punches you can throw at your opponent. It is how many times you can get back up after you've gotten punched in the face...




Trading... how many times can you pull yourself back up after getting a series of punches from the market?
 
Quote from ~~~:

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I am going to NYC in Sept... if you guys are in NYC, we can meet in Per Se or Chinese restaurant ... don't worry abt the bill:D
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You are so generous ~~~. :)

Now that I have buttered/cheesed/olive-oiled you up... would you give me an expense account??? :D



... slow day in the US market...
 
No early morning trade today. I spent all morning learning to properly read TICK and TRIN along with my multiple time frames tick by tick. I found that TRIN can be a great tool to measure when to take profits.

Trin and Tick should be straightforward tools to indicate market directions. Not sure why they are a bit difficult to read for me. I might need more time to get used to them…

Market had a big sell-off this morning. On 15 min chart price is trading in the channel. The sell off is just the down-move leg in the channel. Today’s play could be play with channel trading on 15 min chart.

The first 2 short trades (trade a and trade b) I took were stopped out. The 10258 level was the confluent zone of the S1 and 50% fib retracement. The rally has made 3 waves. The ralley move looks very weak with bears intervention in each legs. On tick chart, tick reached above 1000 level. But the 10258 isn’t the turning point to come down. So my 2 short trades were stopped out.

After the short trades failed, I went long. Trade C basically ended up a small profit.

TRADE D: Price formed a double top patterns at 10270 level. This is also the 61.8% retracement level. TICK reached above 1000 level 3 times.. TRIN is making higher high. Looks like the final leg could not sustain and is going to reverse. Plus the signal red body bar shows up. So I took a short. And it went well. I took profits when TICK hits below -1000. It was an absolute perfect place to take profits. Without TICK’s help, I would think of holding it until it hits 10204 S2 level. But the 10204 was never reached. I could have ended up being stopped out and only getting small profits.

Trade D nailed 38 pts, not too bad.

I didn’t chase the last parabolic reversal up. I prefer to let it go.

BTW, I am using 5 min intervals on TRIN and TICK. And I switched to bar chart after staring at candle charts for 2 hours confusing myself without getting anything. I hope it’s OK.

Today’s PnL: +$155, 4 trades, 50% winrate
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Quote from PatientOperator:

Thank you Matcha.

.....
I think one of my problem is when I lose a trade, I become very undisciplined, I try to recoup the loss and try to enter another trade as soon as possible without thinking through the trade first.

At the end of the day, I read my print out charts and most of the mistakes were quite obvious.

I am going to re-read the Chapter (10) on "Thinking like Sophie the cat" - wait for the best opportunity.... Making the High Probability Trades.

Have a great and profitable Thursday!

--po
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sometimes winning streak can lead to undiscipline too! you tend to take all the false signals...
Trade without emotions are difficult...
we got to focus on each individual trade. forget about the PNL.... When we reach the daily goal. we can log on sim...
 
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