Matcha's Dow E-mini Journal

Quote from ~~~:

Okie Example ...

Bidu was a crazy stock...it shot up to the sky b4 it fell from the sky ...

when it was shooting up ...i kept buying coz "relatively" i felt it was still "relatively" low and can shoot up higher & much higher ...to me 2 hrs is like a minute! ... the insane high px is not high enough yet... lucky me, the px really kept going up... ( i closed all the positions and took out the profits on 04/29/10)
but for those who short-Bidu ... they should throw away(cut-loss) Bidu like they sit on hot stove ...

on 05/06/10, i shorted the market, and few of the forumers were angry at me coz i said extreme volatility ..it's a good day for trader. But only one person said he agreed with me (in neke's journal)... i remember his name is Bolimomo :)
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wow, great calls!

Now i feel even luckier knowing you and Boli here , hehe

:p
 
Quote from Bolimomo:

Sun Tzu said:

There are five fundamental factors for success in war - weather, terrain, leadership, military doctrine and most importantly - moral influence.

5 fundamental factors. I interpret/translate the 5 factors in trading as these:

Weather: The market environment (bullish/bearish/neutral, trending or choppy). This is what you cannot control. But it is the most influential factor of all. (Ask Hitler how he lost to Russia. Or Nepoleon.) You must act in favorable weather - long in bullish weather and short in bearish weather.

Terrain: This is the instrument(s) you trade. You have somewhat choices on the terrain. Each stock/index-futures behaves differently. You must observe how each behaves as you observe the terrain. Choose your battle ground that facilitate your winning. For example: go to higher ground. You short only when the move is far extended and cannot be sustained. You long when the stock has dropped so much that it's unlikely to go lower.

Leadership: That is YOU, the trader. You are the general of your soldiers (your capital). If you fight well, you will win. If you fight poorly, your soliders (capital) will die. Your discipline.

Military Doctrine: Only this one is your trading strategies. The hows. The battle plans. The maneuvers. The money management.

Moral influence: This is a tough one. For a real war in a country, typically the defending country has the highest moral spirit. In trading, I take it as the reason for trading. Do you trade to survive? (More motivated, live or die). Or you trade to have extra spending money? (Don't really care if you lose... won't affect you that much.)



Hey... may be I can write a book on this...
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Write more and more, please! I am actually printing out this post now.
 
Quote from PatientOperator:

Hi Matcha,

Not to be discouraged. We all make this kind of mistakes. The countertrend setups in a strong trending market is our #1 "ENEMY". What we need to do is to write this into our trading strategies/rules that we will exercise all our will power and discipline to avoid trading countertrend when we have identified the current trend. E.g. using our latest new weapon, the $TRIN to guide us. We will follow it religiously until the $TRIN changes. We would rather be late or miss the trade by not pulling the trigger at all.

......
Remember these:

The TREND is our FRIEND.
The COUNTERTREND (in a strong trending market) is our ENEMY.
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It's so true. PO! We are not yet ready to enter the Battle to short/long at the extreme. For us, the "extreme" battlefield isn't very clear. So we play the field that when situation is turning, we join the early fight.,
 
Quote from Bolimomo:

Okay... maybe I do my "absent-minded professor" drivels here first. Then I will collect them after a few years into a book. :)

Matcha you have the honor...
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SURE!!!
 
Quote from Bolimomo:

Okay... maybe I do my "absent-minded professor" drivels here first. Then I will collect them after a few years into a book. :)

Matcha you have the honor...
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I am thinking we can make a movie out of the thread and your book. I am ready to audition for the "matcha" role.

:D :D :D
 
Quote from Bolimomo:

Sun Tzu said:

There are five fundamental factors for success in war - weather, terrain, leadership, military doctrine and most importantly - moral influence.

5 fundamental factors. I interpret/translate the 5 factors in trading as these:




Hey... may be I can write a book on this...
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incredible post +111

i rarely learn things from the message board, but i do use rain as an indicator if the market will fall, i mean literally rain, if its raining outside, and the markets high, i will look for a market dump

reason being: everybody is pissed off when its raining, => sell. and sell hard it is.

rainy seasons = starting in may , ends in august.
boring / down markets = starts in may.
 
Good journal. Although I haven't read AB's book I have watched his video and checked out his trading room trial and learned alot.
 
Quote from coolweb:


reason being: everybody is pissed off when its raining, => sell. and sell hard it is.

rainy seasons = starting in may , ends in august.
boring / down markets = starts in may.
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But this depends on where you are based. In California, it rarely rains in the summer. Rains are all done in the winter... :)
 
Quote from Bolimomo:

But this depends on where you are based. In California, it rarely rains in the summer. Rains are all done in the winter... :)
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You have to be in the area where the financial companies are residing,,

new york (manhattan) / nyse
shanghai /shanghai
hong kong / hkex
london / ftse


But you are right, checking the whether if its -50 or -20 in antartica has no effect on traders in new york :)
 
Quote from Matcha:

Boring day. I made 0 trade.

Woke up late. 60 min chart, 15 min chart and 5 min chart sent mix signal. I couldn’t find any set up I am confident to be in. Then I realize Bernanke ‘s speech is at 11Pst. I would rather trade after his speech about current economy.

Market sold off at 11pst. Bernanke’s speech made me feel so depressing.(He totally changed his tone from last speech, in sub-context.) Market then went south even more. I prefer no to chase the sell-off on the speech, so I let it pass. I can only listen to CNBC for 10 minutes. Then I put my Korean Hip Hop music on….

No trade, no set up. It’s probably better this way for today.
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Hi Matcha,

You are smart for not making any trades today. I went the complete opposite and ended up struggling with the mixed signals for the most part of the early session. I started the day trading way too many times losing quite a bit. Then I caught the downtrend after Bernanke's speech. Broke even at that point. But I didn't stop there and kept thinking the downtrend will continue after 12:00 pt even though the 5 min stochastic has been turning up from oversold. Took too many wrong "Short" trades in the last hour and ended the day pretty bruised. :mad:

Lessons learned: Don't trade if the signals are mixed. And be aware of trend changes when it matures.

Yeah! Boli can write the book and you can play Matcha in the Matcha Trading movie!!!!! :D :D :D

--po
 
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