That's why I don't care for sims...I haven't seen a simulator out there that can model my own stupidity and irrationality when there's real money on the line
My Trading Journey - Thoughts, Ramblings, Live trades
- Thread starter _eug_
- Start date
Why do you say that and what do you recommend? I am in pacific time zone so US markets are really good in terms of time.
I have a buddy who is a forex position trader (gave up day trading after 1.5 years of losing) and he is pushing me in that direction but I really like day trading. I thrive under stress.
You seem to be about as good at price action as I am....which is you say not.
So I looked to where in the market I could make money and be wrong on price movement...short options. And since I'm risk adverse (a condition working in insurance does nothing to help), I use credit spreads to limit the loss on any one trade. I make money on time decay regardless, since gains are limited, I don't get greedy and keep a winner-soon-to-be-loser open, and I close the majority of positions for a gain.
Another week of trading gone by. Paper trading now but taking it very seriously this time. Basically the same level of commitment as with real money. Had 2 winning days and 3 losing days this week. Losing days way bigger than winning.
I am getting more proficient at identifying key s/r levels for the day but I still cant trade them properly. I mark out levels before the day starts and write down an idea of what will happen during the day and even if my exact idea turns out I still end up taking stupid little trades here and there and end up with a big losing day.
I am also experimenting with time based charts vs constant volume bar charts. I like the way the constant volume charts look, especially when viewing the Globex overnight session. Although I am having a hard time deciding on settings with those. Been toying around with 3k as short timeframe, 10k trading timeframe, and 100k as longer timeframe to identify s/r levels.
At this point I cannot figure out if a s/r level will hold or break out and my trades are basically random. I will be spending time back testing some ideas that I have to see if there is any edge in them. I want something more than just blindly putting limit orders at s/r levels and hoping for the best although I guess I can test that and see if it will actually provide a positive expectancy.
I am sticking to horizontal s/r levels... I dont really believe that trend lines work in realtime. Especially since they look different depending on the time frame and time / volume / tick charts.
The basic patterns that I see from observation and that do appear to work are failure tests (Wyckoff spring or upthrust) and 3 bar reversals. Not so sure yet about patterns that confirm the actual break outs. I guess a pull back to confirm R turned to S? or consolidation right under the level with higher lows (acceding triangle formation) Sometimes price blasts through and runs away not to return until way later in the day. This is just from daily observation and what I read in books. Without back testing I cant be sure.
Basically my goal is to put together a plan that allows me to identify major s/r price levels and to take positions there based on price action and take profits at the next nearest minor s/r level.
I also try to watch the Time and Sales at the S/R levels. I filtered the settings so only blocks of 10+ contracts show up but I really cant see any tells there at this point. All I got from it and the CVB bars is that volume significantly dies down from 11:30 to about 2pm est. Only small lots go through at that time and bars print super slow. I didnt notice this when I was just watching time charts. I guess its best to avoid doing business at this time. Problem is I get so into the action that I lose track of time. Need to set some sort of alarm.
I am getting more proficient at identifying key s/r levels for the day but I still cant trade them properly. I mark out levels before the day starts and write down an idea of what will happen during the day and even if my exact idea turns out I still end up taking stupid little trades here and there and end up with a big losing day.
I am also experimenting with time based charts vs constant volume bar charts. I like the way the constant volume charts look, especially when viewing the Globex overnight session. Although I am having a hard time deciding on settings with those. Been toying around with 3k as short timeframe, 10k trading timeframe, and 100k as longer timeframe to identify s/r levels.
At this point I cannot figure out if a s/r level will hold or break out and my trades are basically random. I will be spending time back testing some ideas that I have to see if there is any edge in them. I want something more than just blindly putting limit orders at s/r levels and hoping for the best although I guess I can test that and see if it will actually provide a positive expectancy.
I am sticking to horizontal s/r levels... I dont really believe that trend lines work in realtime. Especially since they look different depending on the time frame and time / volume / tick charts.
The basic patterns that I see from observation and that do appear to work are failure tests (Wyckoff spring or upthrust) and 3 bar reversals. Not so sure yet about patterns that confirm the actual break outs. I guess a pull back to confirm R turned to S? or consolidation right under the level with higher lows (acceding triangle formation) Sometimes price blasts through and runs away not to return until way later in the day. This is just from daily observation and what I read in books. Without back testing I cant be sure.
Basically my goal is to put together a plan that allows me to identify major s/r price levels and to take positions there based on price action and take profits at the next nearest minor s/r level.
I also try to watch the Time and Sales at the S/R levels. I filtered the settings so only blocks of 10+ contracts show up but I really cant see any tells there at this point. All I got from it and the CVB bars is that volume significantly dies down from 11:30 to about 2pm est. Only small lots go through at that time and bars print super slow. I didnt notice this when I was just watching time charts. I guess its best to avoid doing business at this time. Problem is I get so into the action that I lose track of time. Need to set some sort of alarm.
A bit of an update on my progress. I paper traded all of May trying to dial in level identification and also getting better at understand how to read the price action at the levels by looking at price action patterns and depth and sales. My chart reading is getting better for sure and I really feel there is something in the depth and sales and it is making sense to me slowly. I went back to live trading and had a decent run of 4 profitable days in a row. I had issues with scalping my profits way before it actually hit my target at the slightest hesitation on price I would just flatten the position just to see it hit my initial target 10 min later with me already flat sitting on my ass. Need to make up my mind if I am to be a scalper or to hold for the full swing but risk more stop outs.
After this little run of winning days I just sabotaged myself. In two days of bad undisciplined trading after getting upset about missing trades due to hesitation and taking trades outside my plan I gave back all my profits and then some. Very frustrating to say the least. Today was especially bad because my levels from the June contract were worthless on the September contract and I kept trading even though I sensed something was off.
On the undisciplined days I was moving the stops a bit to give room etc. Basically everything that I should not be doing. Obviously a lot of work to do in the trading psychology department. I hesitate on the trades that always end up being really good but jump into dumb marginal trades. Where risk reward is just not that great. Once I miss a trade or two due to hesitation my mindset just goes to shit and I get trigger happy.
This trading game is really tough mentally and emotionally but yet so fascinating. Its been 7 months now since I placed my first trade back in December. Account is down $2,700 or 23%. Equity curve basically a down trend with some pull backs. Looking for that reversal in the equity curve.
After this little run of winning days I just sabotaged myself. In two days of bad undisciplined trading after getting upset about missing trades due to hesitation and taking trades outside my plan I gave back all my profits and then some. Very frustrating to say the least. Today was especially bad because my levels from the June contract were worthless on the September contract and I kept trading even though I sensed something was off.
On the undisciplined days I was moving the stops a bit to give room etc. Basically everything that I should not be doing. Obviously a lot of work to do in the trading psychology department. I hesitate on the trades that always end up being really good but jump into dumb marginal trades. Where risk reward is just not that great. Once I miss a trade or two due to hesitation my mindset just goes to shit and I get trigger happy.
This trading game is really tough mentally and emotionally but yet so fascinating. Its been 7 months now since I placed my first trade back in December. Account is down $2,700 or 23%. Equity curve basically a down trend with some pull backs. Looking for that reversal in the equity curve.
Here are some annotated charts since May 31st. The two sloppy days were a bit of a mess. The r/r figures were my initial stop and targets but I never really achieve them because I cut my trades short.
Had some personal issues last 2 weeks as well. Costly car repairs and relationship issues so obviously not great for trading mindset.
Had some personal issues last 2 weeks as well. Costly car repairs and relationship issues so obviously not great for trading mindset.
Attachments
Last edited:
I've been there. That's the real money vs. Paper trading paradigm...I'm honestly fearful about scaling my technique up and getting irrational when I'm playing with amounts I actually care about losing. I'm slowly learning to just see numbers, not profit or loss. I even tried changing my platform to show all numbers in the same color...it didn't work because I couldn't see my spreads based on p&l vs. market value.
Also, I'm pretty sure indulging my masochism and self deprecation here at ET has been good for my trading. Oddly it's kept my ego in check...I honestly expected my ego and publicly shaming myself would harm my trading, but exactly the opposite happened.
I need to talk about these issues somewhere. My girlfriend is sick of hearing about it. I had lots of success using forums for other self improvement type projects in my life so I figure why not talk about my trading "demons" public
I'm thinking of maybe relocating to a third world country to cut down on costs while I learn this game properly. Canada is not a cheap place to be.
Last edited:
Relocating adds additional problems to the mix, adds more complications, upheaval, disfunction.
Go back to square one. Determine your best trading instruments. Futures, options, stocks...
Determine your best time frames, weekly, daily, intraday trading style. This has to fit in with your life style as which is the most comfortable?
Narrow down which instuments are best, high or low volatility. Select the best ones, exclude everything else.
Now concentrate on those selected few and study them intently!
Dont wander off into another venture - Be Focused.
Avoid jack of all trades master of none mentality.
I like chaos and dysfunction keeps you on your toes and your mind sharp to be problem solving and learning new stuff all the time.
I've been watching the s&p every single day since end of February. I missed two days in that time period. I know some people say ES is not for beginners but I have been watching it for quite a while now and actually really enjoy how it moves. I am most comfortable with the am session. Less chop and levels tend to hold or break pretty quick. No back and forth BS like in the lunch time or after noon. Plus I feel pretty burned out after 2-3 hours of market analysis.
I've also started screen capturing my trading sessions to re-watch later but that's like watching paint dry. I think I will screen capture and talk out my thoughts about the market. This should really help me in the psychology department I think. To be able to come back and re-visit the session with a clear mind and actually see how I reacted to the action in real time.
In terms of studies, I have been watching the Jigsaw education video's to learn a bit about order flow. Also read through Lance Beggs Price Action Trader. Nice book, was a good refresher on market structure and I also learned from him about trapped traders and using peoples stop order flow to your advantage.
Even though I am trying to keep things simple with just s/r lines, price action and dom. I may read about some auction market theory stuff just out of curiosity. Have Markets and Market Logic downloaded for the next read.
Last edited: