Matcha's Dow E-mini Journal

[xroads]

KDASFTG

Brilliant ! You are on the correct wavelength. Before I considered scripting my comments, I pondered over whether I should 'interfere'.
As you have noticed, there is a transformational process. I am merely encouraging the trader to recognize that such a process is necessary.

ref: “Up until the very day you do cross over the threshold into consistent profitability, your proverbial Cart will always be in Front of your Horse, so to speak”.

I understand the context in which your statement is made but, I was applying a different nuance when I used the expression earlier. It's about not counting the chickens before they hatch.

Hats off to your journey ! It's nice to know that there are others.

 

[Redneck]

Quote from Matcha:

Market is a complex beast.



Everyone sees and understands the market differently. So no one can 100% copy and adapt a "so-called magical method". That's why we hungry newbies have been working on so hard to understand the market, understand the setup and build our trading plan around the setup which suitable for us. New traders who want to copy and don't do their own home work will fail quickly. I believe we are in the stage 2-working on our own edge.

No it isn’t – you’ve created that useless belief
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The market is what – buying and selling – simply repeated over and over


You go long – what do you need… Other traders to step in and buy higher, driving price up, so you can then sell for a profit….

Some times these other traders step in…, sometimes they don’t

We use stops for when they don’t



Same for shorting – you need other traders to step in and sell, driving the price lower, so you can then cover for a profit….

Sometime these other traders step in and sell…. sometimes they don’t…..


Again, we use stops for when they don’t

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Who participates in this buying and selling

Institutional traders (includes hedge funds)

Market makers (includes bots)

joe six pack traders


Their goal is the same…, their MO however is completely different – and they each have a different Achilles heal

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Any, every, and all systems, indicators, whatever – have the ability to provide entries that make money


But only until…, and unless…, the trader using whatever system/ indicator – has their mind right… That trader won’t make shit

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Good feelings – are great – but not while trading…

Blowing sunshine up other’s butt – is great – but not while trading…

Pissed off feelings – are also great – but not while trading….

Opinions – are fantastic – but not while trading….


When trading – it’s only about making money – nothing more…, nothing less



One doesn’t need opinions…, one doesn’t need feelings… one simply need take action at the appropriate times

(entering, exiting, sitting on hands, observing, creating/ updating context – are all appropriate actions)

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The price staring you dead nuts in the face – on your chart – contains all the information you need – to trade it profitably

Build some context – then trade it



The first question before entering should be – How much is it going to cost me to find out if this trade will work

Final question – Where will I exit and take my profit


That’s it…. no other questions are necessary

Trade…..

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Now, clear your mind of all the crap – and focus on the job at hand

And please don’t take this as any sort of ‘tough” love, post…..

It is what it is – simple shit – EXACTLY like trading


RN

 

[PatientOperator]

Hi All Sifu(s),

This has been a great weekend with all of you to help us newbies on how to think outside the box. Hopefully all these valuable advice will transform us into better traders.

I appreciate all of your input.

--po

 

[Went Fishing]

Happy Valentine's Day

 

[Went Fishing]

Quote from Redneck:
It is what it is – simple shit – EXACTLY like trading
RN

Very well said, a little common sense goes a long way, just what I needed to hear this morning, thanks.

 

[Matcha]

Today’s trades all reflect 2 of my major trading problems.1. short BO near LOD and below doji signal bar. 2, trapped in the barb wire pattern. As long as I could fix those problems, I will reduce more losing trades.

Trade 1: short. Bad short, I shorted at the low of the day. Below the inside Doji bar and thinking the momentum could drives the move down. Exit when seeing no follow through.

Trade 2, 2 leg pullback buy, +breakout pullback buy. Bars started to overlap. I moved my stop a little early.

Trade 3, re-enter. I exited when see a bad follow through after 11:10 break out bar and I decided to stay away from this Barb Wire pattern waiting for a Breakout pullback setup. Market broke out testing the HOD. There was no pullback. When I am in the trade, then bar started to form a tight Barb wire pattern. I need to either get out do nothing or I should sit back and relax and let the market tells me whether I was wrong.
Live
PnL: -$92, 3 trades

Thanks to KDASFTG’s article about “high probability myth”. I believe I understand more about what trading really is. It totally changed my view on trading and the definition of “system/edge”.-It’s all about “me”. I spent some time looking and comparing trading curve of past trades in 90 days, 60days and 30days period. I did see an improved trade distribution graph. From large losses to smaller losses. From less/small gains to a bit more moderate gains (Thanks Wentfishing to advice me take profit at “normal run”). I also categorized all the losing trades. Now my job is to eliminate them-to cut the losses.

I know my profit still sucks a lot. And it will be for a while. I understand it takes time. My focus is still learning to “build the context into the setup” and to execute the trades with no emotions.(From RN). I shall also not worry too much about missing trades. Every once a while, I will only just watch the PA and learn.

Happy Valentine's Day!

 

[Matcha]

Quote from Redneck:


It is what it is – simple shit – EXACTLY like trading


RN

Thank you. I tried very hard to clear all the crap in my mind this morning.

I am working on "build the context into the setup" and trading "the system" right.

 

[PatientOperator]

Quote from Matcha:

.......

I know my profit still sucks a lot. And it will be for a while. I understand it takes time. My focus is still learning to “build the context into the setup” and to execute the trades with no emotions.(From RN). I shall also not worry too much about missing trades. Every once a while, I will only just watch the PA and learn.....

Hi Matcha,

Happy Valentine's Day!

Ditto - I, too understand it takes time. What you said sums up what we need to do moving forward.

My trading today:
- Not good. 5 trades. 2+, 3-, net -2.25 ES points.
- Lessons learned - it's so easy to identify my mistakes after the facts!
Well, tomorrow will be another learning day!

--po

 

[NoDoji]

Quote from Matcha:

Trade 1: short. Bad short, I shorted at the low of the day. Below the inside Doji bar and thinking the momentum could drives the move down. Exit when seeing no follow through.

From the chart it looks like you shorted after price broke the LOD and formed the inside bar. It looks like that initial break was where you should've shorted and either bailed when it failed to follow through, or at least bailed when price came back to visit there and failed to break. I may be misreading the chart, but that's how it looks.

Quote from Matcha:

Trade 2, 2 leg pullback buy, +breakout pullback buy. Bars started to overlap. I moved my stop a little early.

Trade 3, re-enter. I exited when see a bad follow through after 11:10 break out bar and I decided to stay away from this Barb Wire pattern waiting for a Breakout pullback setup. Market broke out testing the HOD. There was no pullback. When I am in the trade, then bar started to form a tight Barb wire pattern. I need to either get out do nothing or I should sit back and relax and let the market tells me whether I was wrong.

Again, I may be misreading the chart (I can't tell exact bar highs/lows), but it appears that price didn't violate support on either of your long trades.

 

[Matcha]

Quote from NoDoji:

From the chart it looks like you shorted after price broke the LOD and formed the inside bar. It looks like that initial break was where you should've shorted and either bailed when it failed to follow through, or at least bailed when price came back to visit there and failed to break. I may be misreading the chart, but that's how it looks.

I shorted below the 7:50 bar(12208) during 8:00pst bar is forming.After the order wass triggered, the bar turned to be a 1 tck failure bull reversal bar. I exited.

Again, I may be misreading the chart (I can't tell exact bar highs/lows), but it appears that price didn't violate support on either of your long trades.

You are correct. It's another mistake i made, I went for 2 leg pullback setup, then price started to overlapping. I exited before let market stop me out. then I reenter since I saw a 2nd signal, then I exited again since it's overlapping. I thought I should wait for a breakout pullback to go long.On both trades, I didnt wait for market to stop me.(mistake).
The horizontal tight trading range has always been my problem. I could take series of losing trades in this pattern. But once it broke out, it usually gives some nice profit.(usually without me becuase I gave up after a series of stopped out)
I now decide I should either let market stop me out or I should get out wait for BO pullback. If I don't get it. then just let it go...

I will do a better job note my entry and exit tomorrow