Matcha's Dow E-mini Journal

[PatientOperator]

Quote from NoDoji:

Today I took $550 off a trade when it pivoted from just below the round number after putting in a significant new low. I assumed it would put in the round number bounce and I'd re-short there. No. The thing ended up crashing and then I kept thinking it had fallen too far to short. If I'd simply managed the trade using textbook with-trend trade management, I would've been in the trade for another $1100, simply trailing a stop at the high of each closed bar.

When you're trading with the trend, let the trend - not round numbers nor S/R or nor MACD nor Mr. Elliot Keltner Fibonacci - be your friend!

Ditto that! I am with you 100% to stay with what give you the edge - the trend is your friend!!!!!

I have to admit that everyone can get something out of the market using different methods. There are many roads that leads to Rome. I used to try all kinds of things that seemed to work for others and getting mixed results. But eventually I limit to using a only a few things that I am comfortable with.

 

[Matcha]

Quote from NoDoji:

Today I took $550 off a trade when it pivoted from just below the round number after putting in a significant new low. I assumed it would put in the round number bounce and I'd re-short there. No. The thing ended up crashing and then I kept thinking it had fallen too far to short. If I'd simply managed the trade using textbook with-trend trade management, I would've been in the trade for another $1100, simply trailing a stop at the high of each closed bar.

When you're trading with the trend, let the trend - not round numbers nor S/R or nor MACD nor Mr. Elliot Keltner Fibonacci - be your friend!

Depends on the context of the market I guess. Sounds easy, all the books said "you should just ride the trend". but to me sometimes it's so hard to tell whether the trend is ending, consolidating or continuing...

 

[~~~]

Quote from Matcha:



Trading like robot is my eventually goal...

Sweet Matcha

my strategy = trading like water
calm and tranquility water is soft yet very strong
in trading, we need to be calm, cool and flexible like water
water is emotionless but extremely strong..
drops of water made an ocean

if you can trade like water
your dream of buying your dream house for your mom, your mentor(Bolimomo) and buying your dream houses in major cities in the world is not a problem.

 

[athlonmank8]

Quote from NoDoji:

Today I took $550 off a trade when it pivoted from just below the round number after putting in a significant new low. I assumed it would put in the round number bounce and I'd re-short there. No. The thing ended up crashing and then I kept thinking it had fallen too far to short. If I'd simply managed the trade using textbook with-trend trade management, I would've been in the trade for another $1100, simply trailing a stop at the high of each closed bar.

When you're trading with the trend, let the trend - not round numbers nor S/R or nor MACD nor Mr. Elliot Keltner Fibonacci - be your friend!

Another idea that works (although this method is a little looser).

Once the current candle posts a new high/low and closes, put your stop above below the previous bar (unless the current candle trumps it). As long as new highs and lows are made, your stops will be adjusted with it.

 

[PatientOperator]

Quote from Matcha:

The book is a great and pleasure reading. I liked it!
In order to be a master, you got to achieve 10,000 hours, it takes 4 years to study/work fulltime to master the skill. So 3-5years is the right time frame to learn how to trade. But in this career, 10,000 is not garenteed to be a CP trader... There are so much emotions to deal with. One blow out could wipe out everything. So we have to tell ourself as we learn, control risk, place stop, control limit loss.
But I think we can do it! Even though I might need to go back to full time job, Eventually I believe can make as a trader. I don't give up easily.
To avoid some major blow out, I need to stay in SIM. To tell you the truth, when I first started to look at the market, that was last April, I had no idea there is such thing called sim. There is such thing called stops. I thought Fundamental Analysis is the way to succeed in trading. I bought a book called fundamental analysis, I analyzed JPM, HP, CSCO and a whol bunch others I heard from TVs. I also briefly studied Benjamin Gramhan's formulas on stock future value. I did all the stupid forcast for each companies with "realistic" projections. I purchased those names last May, they did go up at one point. So I made some profits. I thought myself was a Hero at that time. Then I repurchased some other stocks in July, based all on my ridiculous fundamental analysis. Until December, all my stocks didn't do anything. So I was a little discouraged. One day, Friend's friend's friend who is a so called guru told me to buy some options, so I totally listened. I bought whole bunch of naked puts. In January, all the options went to 0 value. At that time, I was just traveling in Asia. My dream of shopping like a queen there went to toilet too. After I came back from trip, I thought that this is not the way to trade. My porfolio shrunk 25% over a month! Then I started to do research on trading and realized trading is the most difficult career in the world. Technical anaysis is the key to success.
Now I am thinking everything back, the blow out could be the best thing ever happened to me. If at that time, I did make a lot of profits from those options and stocks, I would have probably lost 50% or even 80% now because I would have put down more money.
I will have to still stay in SIM for a while... because I know I am still not ready yet...As you said, focus on loss first.

Hi Matcha,

I am glad that you like the book. It is my favorite.

Thanks for sharing your trading experience and your encouragement. I, too share a very similar path - started out using fundamental analysis to pick stocks; later discovered technical analysis and the beauty of it to apply to short term trading; have read many many books, too....

I do hope that we can reach our goal to become a CP day trader. You have inspired me to spend the time doing SIM trading to train myself to become a "robotic"/"unemotional" trader so that I can make quicker decisions. Like I mentioned earlier, when I first started full time trading. I jumped right into it doing LIVE trading. I learned my lesson the hard way by paying my dues. Now, I am taking the time to get myself conditioned and be able to go with the "flow" in my trading.

For my training, I saved all my charts and print them out at the end of each trading day. Just like Dr. Al Brooks' trading guideline #31 (on page 385) I marked every single trade and study them and place more emphasize on the losing trades. I called out the mistakes I made and learn from them. I found several things that I keep repeating that I need to improve on. I hope I will be able to do what the doctor said about being able to look at any part of the chart and "instantly" understand what is happening and be able to enter and exit trades with minimal or no uncertainty or anxiety (as in his trading guideline #33 that I have to find my trading style).

Have a great trading day tomorrow!

--po

 

[~~~]

Quote from Matcha:

The book is a great and pleasure reading. I liked it!
In order to be a master, you got to achieve 10,000 hours, it takes 4 years to study/work fulltime to master the skill. So 3-5years is the right time frame to learn how to trade. But in this career, 10,000 is not garenteed to be a CP trader... There are so much emotions to deal with. One blow out could wipe out everything. So we have to tell ourself as we learn, control risk, place stop, control limit loss.

yeah.. 10,000 is definitely NO guaranteed to be a CP trader... control your emotions..money management..risk management..good at reading chart and catching trend etc .. in order to be a good trader, you need to be emotionless and fearless when you're trading .. doesn't matter you are trading 1k or 10,000,000k.




But I think we can do it! Even though I might need to go back to full time job, Eventually I believe can make as a trader. I don't give up easily.

When starting out, working full time under intelligent boss is the best way to learn how to trade and get paid every month. Working for an intelligent boss also teaches one to be humble and discipline. One will cut the learning-curve to more than half if he/she is under a good mentor/boss.

i started out as a trainee .. in 3 years, i was managed to save 200k but still i was trading clients $$$ only. In 5 years, my saving was more than 500k. ( i was extremely frugal and renting a mini tiny room, all i did was work & worlK & more work)

In 1997.. the Asia Financial Crisis was My Big Breakthrough! I used my partial-saving 300k to trade my own account and i made 1 million plus. I bought my 1st smal cozy apt .. still working hard and travelling around the world on vacations... i traded stock, oil and gold, currencies and invested in Real Estate...$ made $ and produce more money .. eventually i became my own boss..

Matcha, i have no doubt you can be a good trader .. just need a little time and practice.. you're on your way to success ...




To avoid some major blow out, I need to stay in SIM.



You are smart ... using SIM to perfect your trading skills...



At that time, I was just traveling in Asia. My dream of shopping like a queen there went to toilet too.


you're so cute! i sometimes shop like a queen too when i am on shopping vacation.. i am a foodie too.



Now I am thinking everything back, the blow out could be the best thing ever happened to me.


i went thru a lot of hardships when i was young ... i treated it as blessing from the sky ... because of the adversity... i am strong and wise today

 

[Matcha]

If statistics are correct, trending days only happen 2 days in a month, this day should be the day generate the monthly income and cover all the losing days. Then today is the day, I must be retarded. I didn’t take advantage it at all. Looking at 6/15 chart, that was a trending day too, I didn’t take too much advantage of it either.


In the past 3 days, price formed D/B with pullback pattern, this morning at the opening on 5 min and 15 min chart, the 20EMA crossed above 100 EMA signals a very bullish trend reversal. I visualized all these before put on a trade. The first trade worked out, but I had to leave my desk before 7:30, so I had to get out before it goes higher.

Back at 9am, saw the setup I like, even though it’s 9am, I went in on a long position. Then stopped out, then went back in, moved my stop, stopped out. Doubted myself, took a short position, stopped out again. Wasted 5 trades on one leg, then I gave up. Market shoots higher without me…

Had to leave early at 12:30 too. So I had to get out TRADE B before 12:30.

Losing focus, lack of trading trending day mindset makes me not take advantage of the trend. Also makes me feel foolish.

Today’s PnL: $51.00, 10 trades, 40%winrate

 

[Matcha]

Quote from ~~~:

Thank you for sharing your experience with me. Very impressive! I have been living in a frugal life to pursue trading now....Just started to learn to take some responsibilities. It was hard! No shopping, eating out for me anymore...

 

[Matcha]

Quote from PatientOperator:

Hi Matcha,

...

For my training, I saved all my charts and print them out at the end of each trading day. Just like Dr. Al Brooks' trading guideline #31 (on page 385) I marked every single trade and study them and place more emphasize on the losing trades. I called out the mistakes I made and learn from them. I found several things that I keep repeating that I need to improve on. I hope I will be able to do what the doctor said about being able to look at any part of the chart and "instantly" understand what is happening and be able to enter and exit trades with minimal or no uncertainty or anxiety (as in his trading guideline #33 that I have to find my trading style).


--po

Analyzed charts and trades at the end of the day is a great exercise. We do realize the mistakes. But to me, OMG! I can't believe it's so hard to not to repeat the mistakes... today I took a long with trend trade, D/B with the MA. Then I was stopped out twice by those pin point bars. Then the price looks like a D/T pattern, so I took the short trade without thinking anything more even though the trend was so strong. Then I was stopped out again. I realized that I just took a counter-trend trade... foolish me
The enter and exit trades with minimal uncertainty is the hardest part! I think it takes lots of practice... and trade only one set up to begin with...

 

[Matcha]

Quote from athlonmank8:

Another idea that works (although this method is a little looser).

Once the current candle posts a new high/low and closes, put your stop above below the previous bar (unless the current candle trumps it). As long as new highs and lows are made, your stops will be adjusted with it.

Hi, Athlonmank8!
Thanks for posting. Are you refering to the bar on 5 min chart? Does this strategy work on only a strong parabolic move- price printing more than 3 or more green /red candle with higher high/low/close?
Do you often get stop out with such tight stops?