Great advice. Read that book for fun when I was 6. (in plain chinese). We studied some of his strategies in high school text book too(acient chinese). At that time, I didn't connect any of his stragtegies to anything in life. Now I do think his book is a must read in trading, even in life. One more book add to my reading list.
Matcha's Dow E-mini Journal
- Thread starter Matcha
- Start date
Great advice. Read that book for fun when I was 6. (in plain chinese). We studied some of his strategies in high school text book too(acient chinese). At that time, I didn't connect any of his stragtegies to anything in life. Now I do think his book is a must read in trading, even in life. One more book add to my reading list.
Quote from PatientOperator:
Hi Matcha,
Hehe! You are definitely a smarty girly girl!
The pivot points I used are the "canned" study feature in my charting tool. It automatically inserts them into my 5 minute chart everyday. I guess it is not the monthly or weekly type. I think it uses the same formula that you mentioned earlier in this thread. You are correct that it did track the movement quite well lately. Amazingly, today the high was near the Pivot Point and the low was right on the S2. It touched the S2 three times near the close.
Today, I followed your advice to wait "patiently" for the best setup before I made the trades. I remember you did very well when you focused on waiting for the high probability trades. I tried very hard to stay within my trading plan, the trades that I have waited did well but when I strayed from the trading plan and did a countertrend trade to the long side when the trend was clearly down in the afternoon I lost that one. I still need to learn how to be a disciplined trader.
To determine the trend, I look at the 30 minute chart. I look at the 5 minute chart for setup. For entry, I use the chart trader on the 1 minute chart. Then I went back to the 5 minute chart to monitor the trade for exit. At one point, I try to use only the lower time frame (1 minute) chart for setup, entry and exit, but I found it to be too overwhelming (too many setups) and tend to overtrade a lot. I then went back to use the 5 minutes chart to look for setups. This is more manageable (just like Dr. Al Brooks said).
I primary use price action and also use indicators to confirm my setup. The indicators I use are EMA and stochastic. Nothing really fancy. Just try to keep things simple. I try to trade with the trend and wait the pull backs. When the market is in a trading range, I simply use the stochastic to get the cue. Marcel Link has a good chapter on oscillators. His topic on stochastic is very good.
Have a great trading day!
--po
Thanks for nice word! I never consider myself smart. Ha! There are so many talented people out there.
To be honest, you are doing way much better than me. I found these days are so challenging to me. I feel like I often look at too many things, then I felt very ansy. I got in either too late or too quick. I also found that with only one contract, if I don't take profits right away which could possibly damage my account quickly. It seems like the psychological level is 20 points. Most of the time if I don't take profits at 20 points, I either b/e or take a loss instead. I am not sure if I can call it odd, or it's just how YM stretched.
There are times I can nail 50 points right away. But the rarely happened 50 points can't justify the b/e and losing trades.
So I think with one contract, I got to take profits at the first S/R level...
Hi Matcha,
You are way cool!
Thank you very much for typing and posting the Pivot Points Rules. With practice, this could be a very good tool to jump ahead of others when the situation allows to do so.I agree with you that the 20 points for YM (2 pts for ES) is aggressive unless one can use master the setup and pinpoint the entry.
--po
visit www.mypivots.com for more information...also...when will you start trading the YM with real $$ cash?...Quote from PatientOperator:
Hi Matcha,
You are way cool!
I agree with you that the 20 points for YM (2 pts for ES) is aggressive unless one can use master the setup and pinpoint the entry.
--po
Wow! Like I said earlier, you are really smart!!! I can tell you are a very good and avid reader!
Hi Matcha,
I think that's perfectly okay to take 20 points profit in day trading YM. Al Brooks talked about taking 1 point profit in ES (approx. 10 points in YM) can be a way to become a successful day trader. If you see the condition exists, there is nothing wrong to take 20 points, you can always wait for a pull back to re-enter later. Marcel Link talked about something similar in his book. Instead of going for home run for every hit, advancing one or 2 bases isn't too shabby! He is a big advocate on PPC (Preserving Precious Capital).
Have you thought about using trailing stops so that you won't allow a 20 point profit to become a b/e or taking a loss?
--po
I do use trailing stop, tighten my trailing stop on the next lower low or higher higher when price going further. But the price ususally turns back and run my stops. So I ended up getting nothing or a loss. It probably because I moved stops too quickly or the move isn't that reliable. To maintaining a high win rate, it might be a better idea to take profit asap with my one contract when the move isn't parabolic.
