One Trade at a Time
- Thread starter Chris_Anonymous
- Start date
+50
-35
Daily Total: +15
Took my first trade today according to plans.
SPY opened with a nice little move upward and then made a pullback to a higher low. I bought in above the 9:55 candle on what I thought would be a second leg.
<i>According to plan,</i> I set my stop in the right place, set my first target in the right place and used proper position sizing.
Shortly after though, I ditched my plans and sold an extra 100 shares at my first target instead of waiting for my second target.
Then I moved my stop in tighter than my rules state. And I thought that I made the right choice because momentum was slowing down and volume was declining. If I had stuck to my rules, I'd have not taken my next trade, as I'd still be in my first trade making more money.
My second trade was me getting antsy and throwing my money away. Forcing a signal that obviously wasn't a signal. As soon as I was in I realized I was wrong and got out.
<b> Rules broken on first trade:</b>
Not following targets.
Not following stop rules.
<b>Rules broken on second trade:</b>
Not following setups.
No reason to take trade.
All I can say is jeez louise.
Whatever my next trade is, I'm sticking to my rules come hell or high water!
Game on.
-35
Daily Total: +15
Took my first trade today according to plans.
SPY opened with a nice little move upward and then made a pullback to a higher low. I bought in above the 9:55 candle on what I thought would be a second leg.
<i>According to plan,</i> I set my stop in the right place, set my first target in the right place and used proper position sizing.
Shortly after though, I ditched my plans and sold an extra 100 shares at my first target instead of waiting for my second target.
Then I moved my stop in tighter than my rules state. And I thought that I made the right choice because momentum was slowing down and volume was declining. If I had stuck to my rules, I'd have not taken my next trade, as I'd still be in my first trade making more money.
My second trade was me getting antsy and throwing my money away. Forcing a signal that obviously wasn't a signal. As soon as I was in I realized I was wrong and got out.
<b> Rules broken on first trade:</b>
Not following targets.
Not following stop rules.
<b>Rules broken on second trade:</b>
Not following setups.
No reason to take trade.
All I can say is jeez louise.
Whatever my next trade is, I'm sticking to my rules come hell or high water!
Game on.
I stepped out for a while, just got back. It looks like I missed any other good opportunities for trading SPY today so far. Who knows about the last two hours.
I only took one more trade but I eventually covered it for a 1 cent gain. I figured I was in a trading range.
As I look at the chart now, I see that the last opportunity I took, had I followed my rules <i>exactly</i>, would have ended up nicely profitable, even though it would have taken several hours on this slow day.
I'm going to write where I saw that opportunity to show how it could have worked if I had left the trade on.
Any professionals who might be reading this, can you please give me your input on if this is a trade you would have taken? Or at least, does it make sense?
<img src="http://i.imgur.com/XF70p.jpg" title="Hosted by imgur.com" />
I only took one more trade but I eventually covered it for a 1 cent gain. I figured I was in a trading range.
As I look at the chart now, I see that the last opportunity I took, had I followed my rules <i>exactly</i>, would have ended up nicely profitable, even though it would have taken several hours on this slow day.
I'm going to write where I saw that opportunity to show how it could have worked if I had left the trade on.
Any professionals who might be reading this, can you please give me your input on if this is a trade you would have taken? Or at least, does it make sense?
<img src="http://i.imgur.com/XF70p.jpg" title="Hosted by imgur.com" />
-71
Daily total: -51
One more trade just to round things off. Don't want to be too good just yet!
Easy to tell what went wrong here. Had a signal, took it, but since it was telling me to go short despite a definite uptrend all day today, I doubted myself and let myself get scared out for only +5. Then, thought the uptrend would continue and I set a stop too tight and was stopped out for a nice loss.
This trading thing is going to take longer than just a month or so haha. Who knew?!
Anyway, here are the rules I broke.
<b>Rules broken on trade:</b>
Not following signal (not trusting my own system).
Not following stop and target rules.
Gee whiz, it's interesting. I keep breaking the same rules. It seems as if I don't trust myself, despite having a plan that gives me enough reason to trust myself. Contradiction anyone?
I feel like every morning before I trade I need to read Al Brooks' and Mark Douglas' books just to remind myself what kinda mental spot I should be in.
Daily total: -51
One more trade just to round things off. Don't want to be too good just yet!
Easy to tell what went wrong here. Had a signal, took it, but since it was telling me to go short despite a definite uptrend all day today, I doubted myself and let myself get scared out for only +5. Then, thought the uptrend would continue and I set a stop too tight and was stopped out for a nice loss.
This trading thing is going to take longer than just a month or so haha. Who knew?!
Anyway, here are the rules I broke.
<b>Rules broken on trade:</b>
Not following signal (not trusting my own system).
Not following stop and target rules.
Gee whiz, it's interesting. I keep breaking the same rules. It seems as if I don't trust myself, despite having a plan that gives me enough reason to trust myself. Contradiction anyone?
I feel like every morning before I trade I need to read Al Brooks' and Mark Douglas' books just to remind myself what kinda mental spot I should be in.
Read and marked off page numbers off <i>Trading In The Zone</i> this morning.
Then I lost money on a trade in the middle of the congestion between 9:45 and 10:00 am this morning on SPY.
Got me in an emotional whirlwind!
Took a trade on AMZN, to win money back. That's right, I said it. I shouldn't have done it. It was not in my plan yet, but after that trade I officially closed the AMZN chart and specifically said I won't be trading individual stocks. Only screen I have showing now is SPY.
Took a break from trading and didn't jump in until about 11:45. Saw a signal and made a bit of profit off it. Still, I couldn't follow all my rules. I exited all shares for only a 10 cent profit.
<b>Rules broken in last trade:</b>
Took profits too soon.
Not following profit target rules.
Currently I'm down by about -50. I'm going to walk away and grab lunch, and then maybe if another signal comes later, I'll take it.
Then I lost money on a trade in the middle of the congestion between 9:45 and 10:00 am this morning on SPY.
Got me in an emotional whirlwind!
Took a trade on AMZN, to win money back. That's right, I said it. I shouldn't have done it. It was not in my plan yet, but after that trade I officially closed the AMZN chart and specifically said I won't be trading individual stocks. Only screen I have showing now is SPY.
Took a break from trading and didn't jump in until about 11:45. Saw a signal and made a bit of profit off it. Still, I couldn't follow all my rules. I exited all shares for only a 10 cent profit.
<b>Rules broken in last trade:</b>
Took profits too soon.
Not following profit target rules.
Currently I'm down by about -50. I'm going to walk away and grab lunch, and then maybe if another signal comes later, I'll take it.
Dear ET,
I have not forgotten about this journal. I feel it has been in my best interest to really sit down and write up a solid business trading plan so that I am prepared for my trading endeavor.
Before I make comments on any more trades, I will be writing and finishing this plan completely.
I will be trading support and resistance, and I'll be using setups that are based around break-outs through S/R or bounces off of S/R.
I'll be back soon!
I have not forgotten about this journal. I feel it has been in my best interest to really sit down and write up a solid business trading plan so that I am prepared for my trading endeavor.
Before I make comments on any more trades, I will be writing and finishing this plan completely.
I will be trading support and resistance, and I'll be using setups that are based around break-outs through S/R or bounces off of S/R.
I'll be back soon!
I'm starting to sim-trade /CL.
I'll be doing this for a while until I can consistently rake in the sim-cash.
I've got several basic setups, all based around support and resistance.
I'll post a bit more later today.
I'll be doing this for a while until I can consistently rake in the sim-cash.
I've got several basic setups, all based around support and resistance.
I'll post a bit more later today.
ET!
I never did post later the other day...
So I finished my trading plan. It has all the good stuff that a trading plan needs... Okay, so it still has a ways to go, and needs a lot of improvement, and probably some more love and time put into it. But the essentials are there, and I'll continue to refine it as time goes on and I get better and more experienced.
Let me start by outlining what my plan is, how I intend to trade, and how I will go about doing it.
Once that's done, I'll do what I did before, and post my trades and comment on every trade. I'll state what I think I need to improve, and what I think I did correctly.
My goal here is to let others in and keep myself in check and grounded. I hope that others can learn from me, if not by my success then surely by my mistakes. And I hope that others will comment on what they see, and help me learn how to trade better.
<b>The Plan:</b>
<b>Instrument:</b> Light Sweet Crude Oil (/CL)
<b> Timeframe:</b> Intra-day. Using 5-min and 1-min chart.
<b> Initial Account Capital:</b> $10,000. (Most likely will add more before live trading begins.)
<b>Maximum Daily Loss:</b> $400. Might be a bit on the low end for oil futures, but for now it will do.
<b>Maximum Per-Trade Loss:</b> $200.
<b>Methodology:</b> Price Action. Trade around support/resistance. Break-outs and bounces.
<b> Stage 1 Goals:</b>
1. Establish better, more specific setups while trading and memorize all of them.
2. Take all setups, and follow all rules consistently, preferably without hesitation.
3. Make money for 30 days, preferably 30 consecutive trading days. (Business days only, so about 6 weeks at the minimum.)
4. Memorize all filters that keep me out of trades or allow me to exit early.
5. Practice order execution until it becomes second-nature.
<b>Stage 2 Goals:</b>
1. Trade live with real money using ONLY 1 contract.
2. Remove most emotions or at least detach in such a way that it no longer inhibits my trading.
3. Get to the mechanical stage Mark Douglas talks about in his book "Trading in the Zone."
4. Be consistently profitable for at least 3 weeks or 15 trading days.
<b>Stage 3 Goals:</b>
1. Increase position size to 2 contracts.
2. Trade with new size until I am confident, comfortable and consistent (The Three C's!).
3. Must be consistent for at least 15 trading days. (Most likely more.)
<b> Stage 4 Goals:</b>
1. Increase size and repeat Stage 3 goals until I can trade with 5 contracts.
2. Call myself a Pro!
In addition to my goals, there are several other rules for trading:
First, whenever I hit my maximum daily loss more than 2 days in a row, I will switch back to simulated trading until I achieve The Three C's (confidence, consistency, and comfortability. [is that a word?])
Second, I will update my journal daily and review every trade for both mental growth and trading errors.
I never did post later the other day...
So I finished my trading plan. It has all the good stuff that a trading plan needs... Okay, so it still has a ways to go, and needs a lot of improvement, and probably some more love and time put into it. But the essentials are there, and I'll continue to refine it as time goes on and I get better and more experienced.
Let me start by outlining what my plan is, how I intend to trade, and how I will go about doing it.
Once that's done, I'll do what I did before, and post my trades and comment on every trade. I'll state what I think I need to improve, and what I think I did correctly.
My goal here is to let others in and keep myself in check and grounded. I hope that others can learn from me, if not by my success then surely by my mistakes. And I hope that others will comment on what they see, and help me learn how to trade better.
<b>The Plan:</b>
<b>Instrument:</b> Light Sweet Crude Oil (/CL)
<b> Timeframe:</b> Intra-day. Using 5-min and 1-min chart.
<b> Initial Account Capital:</b> $10,000. (Most likely will add more before live trading begins.)
<b>Maximum Daily Loss:</b> $400. Might be a bit on the low end for oil futures, but for now it will do.
<b>Maximum Per-Trade Loss:</b> $200.
<b>Methodology:</b> Price Action. Trade around support/resistance. Break-outs and bounces.
<b> Stage 1 Goals:</b>
1. Establish better, more specific setups while trading and memorize all of them.
2. Take all setups, and follow all rules consistently, preferably without hesitation.
3. Make money for 30 days, preferably 30 consecutive trading days. (Business days only, so about 6 weeks at the minimum.)
4. Memorize all filters that keep me out of trades or allow me to exit early.
5. Practice order execution until it becomes second-nature.
<b>Stage 2 Goals:</b>
1. Trade live with real money using ONLY 1 contract.
2. Remove most emotions or at least detach in such a way that it no longer inhibits my trading.
3. Get to the mechanical stage Mark Douglas talks about in his book "Trading in the Zone."
4. Be consistently profitable for at least 3 weeks or 15 trading days.
<b>Stage 3 Goals:</b>
1. Increase position size to 2 contracts.
2. Trade with new size until I am confident, comfortable and consistent (The Three C's!).
3. Must be consistent for at least 15 trading days. (Most likely more.)
<b> Stage 4 Goals:</b>
1. Increase size and repeat Stage 3 goals until I can trade with 5 contracts.
2. Call myself a Pro!
In addition to my goals, there are several other rules for trading:
First, whenever I hit my maximum daily loss more than 2 days in a row, I will switch back to simulated trading until I achieve The Three C's (confidence, consistency, and comfortability. [is that a word?])
Second, I will update my journal daily and review every trade for both mental growth and trading errors.
Now that I've laid the groundwork, it's time to post today's chart and trades!
This is day 1 of Official Sim-Trading.
Just to clarify on the attached chart: The colored arrows are trades.
Green: Long Entry
Blue: Long Exit
Purple: Short Entry
Yellow: Short Exit
And all times are Eastern Standard. Today I was mainly using the 1-minute chart.
<b>Daily P&L:</b> -190
<b>No. of Trades:</b> 12
-40. Okay. The first trade was long at 99.08 (10:05am), I thought it would be a breakout. In hindsight, there was nothing but resistance.
-40 and +30. Next two trades were short. 1st was at 98.82 (10.09am) and the second was at 98.79 (10:10am). I was trying to short a break below the 10:02 candle and then a break below the 9:46 candle.
Stepped away for a bit...
-60. Long at 99.23 (10:38am). I saw the candle pull back and I figured that 1 tick above the previous large bullish candle would be a break to the next resistance level.
+100. I took the same trade 2 minutes later at 10:40 and should have set my target for 20 ticks. I told myself to do it mentally, and gave up 10 ticks.
-70. Saw what I thought was a pullback and when I bought in at 99.30 (10:49am), it quickly turned on me.
+20. I then saw support from the low of the 10:40 and 10:47 candles break and shorted at 99.18 (10:50am). I didn't see conviction so I got out.
-70. Shorted a break of the 10:50am candle's low at 99.13 (10:51am) and exited quickly. This trade was just a dumb idea.
Stepped away for another little bit...
+70. Saw resistance at 99.49 and the 11:21am candle had what I considered to be a failed breakout. I shorted at 99.47.
-10. Went long I think by accident at 99.50 (11:25am).
-50. Went long on purpose at 99.52 because I was trying to buy the breakout of the 11:21 and 11:22 candles' high of 99.50.
-70. Went long one last time at 99.56 (11:28am) and now that I look back on it it wasn't a good idea.
Done for the day in order to write these entries.
Pros: I used my charting program better than I have before, only 1 order execution error.
Cons: I was over-trading wayyy too much.
Back on Monday for more!
This is day 1 of Official Sim-Trading.
Just to clarify on the attached chart: The colored arrows are trades.
Green: Long Entry
Blue: Long Exit
Purple: Short Entry
Yellow: Short Exit
And all times are Eastern Standard. Today I was mainly using the 1-minute chart.
<b>Daily P&L:</b> -190
<b>No. of Trades:</b> 12
-40. Okay. The first trade was long at 99.08 (10:05am), I thought it would be a breakout. In hindsight, there was nothing but resistance.
-40 and +30. Next two trades were short. 1st was at 98.82 (10.09am) and the second was at 98.79 (10:10am). I was trying to short a break below the 10:02 candle and then a break below the 9:46 candle.
Stepped away for a bit...
-60. Long at 99.23 (10:38am). I saw the candle pull back and I figured that 1 tick above the previous large bullish candle would be a break to the next resistance level.
+100. I took the same trade 2 minutes later at 10:40 and should have set my target for 20 ticks. I told myself to do it mentally, and gave up 10 ticks.
-70. Saw what I thought was a pullback and when I bought in at 99.30 (10:49am), it quickly turned on me.
+20. I then saw support from the low of the 10:40 and 10:47 candles break and shorted at 99.18 (10:50am). I didn't see conviction so I got out.
-70. Shorted a break of the 10:50am candle's low at 99.13 (10:51am) and exited quickly. This trade was just a dumb idea.
Stepped away for another little bit...
+70. Saw resistance at 99.49 and the 11:21am candle had what I considered to be a failed breakout. I shorted at 99.47.
-10. Went long I think by accident at 99.50 (11:25am).
-50. Went long on purpose at 99.52 because I was trying to buy the breakout of the 11:21 and 11:22 candles' high of 99.50.
-70. Went long one last time at 99.56 (11:28am) and now that I look back on it it wasn't a good idea.
Done for the day in order to write these entries.
Pros: I used my charting program better than I have before, only 1 order execution error.
Cons: I was over-trading wayyy too much.
Back on Monday for more!