One Trade at a Time

[Chris_Anonymous]

Latest Concept that is starting to make sense:

Multiple Time Frames.

By using a 500 tick chart in combination with a 100 tick chart (tick charts simply being my personal preference), both time frames are in sync with each other, and more importantly tighter stops are achievable.

I've heard several members on ET discussing the merits of multiple time frame analysis however, it wasn't until I sat down and experimented with what was most comfortable to me that things started to make sense.

Also, having done some preliminary studies on this, I've found so far that it's profitable and worthwhile even after getting stopped out two or max three times before the trade goes in my direction or the setup is invalidated.

Let's see where this concept takes me.

 

[Chris_Anonymous]

Latest Concept that is starting to make sense:

Multiple Time Frames.

By using a 500 tick chart in combination with a 100 tick chart (tick charts simply being my personal preference), both time frames are in sync with each other, and more importantly tighter stops are achievable.

I've heard several members on ET discussing the merits of multiple time frame analysis however, it wasn't until I sat down and experimented with what was most comfortable to me that things started to make sense.

Also, having done some preliminary studies on this, I've found so far that it's profitable and worthwhile even after getting stopped out two or max three times before the trade goes in my direction or the setup is invalidated.

Let's see where this concept takes me.

 

[Chris_Anonymous]

Continuing from my last post, it seems using multiple time frames has led me to a new revelation. I haven't done sufficient testing yet, but here's what I've found so far.

If I time my entries until after the most recent price pivot when momentum is driving price on towards the next pivot, I can place a very tight stop because price generally tends not to look back. Now, this doesn't happen in every case, but it seems at certain times, especially when trading with the trend, I could enter on a stop and my initial stop loss could be as small as 7-10 ticks.

Logically it makes sense too. If momentum is driving price and your stop is set very tight, there's no reason for price to come back and hit your stop.

Could it be? We'll see.

 

[Handle123]

Quote from Chris_Anonymous:

Continuing from my last post, it seems using multiple time frames has led me to a new revelation. I haven't done sufficient testing yet, but here's what I've found so far.

If I time my entries until after the most recent price pivot when momentum is driving price on towards the next pivot, I can place a very tight stop because price generally tends not to look back. Now, this doesn't happen in every case, but it seems at certain times, especially when trading with the trend, I could enter on a stop and my initial stop loss could be as small as 7-10 ticks.

Logically it makes sense too. If momentum is driving price and your stop is set very tight, there's no reason for price to come back and hit your stop.

Could it be? We'll see.

What happens often and for good reasons, you buy a breakout of a triangle, market goes so far, you place breakeven stop, price comes back and stops you out, then market resumes in the original direction. Many times first reaction out is false, I always wait for the areas that will cause smaller trader to get out with losses and at deeper retracement to buy, and I can risk less than original entry.

I use monthly, weekly, daily and 60 minute charts to draw trendlines cause when price hits longer term trendlines, Price often times bounce off. They are great places to take profit and when not to take trades against these longer term TL on first touches.

When trading off smaller timeframes and using EMA, I won't sell below EMA's or buy above EMA's, I want Price to retrace, but still have rising lows and rising highs, I can reduce risk by doing this.

When "day trading", trend is most of the time just a momentary occurence. Trend trading can be seen better using daily bars, whereas if a stock open high and drops, for you it is in downtrend but just a blip on overall trend. Volume is huge when trading stocks.

As you gain experience, you will find less and less where you enter is less important and how you manage your money to be 99% of the trade.

Good luck.

 

[Chris_Anonymous]

I think I'm having another ah-ha moment. I have read so much and tested so many ideas and now I find none of it matters if the mental fortitude/emotional growth isn't there.

I was reading through an old thread on ET titled "Why Can't I Make Money - When I Know What to do?".

In that thread, Redneck wrote a response that I totally relate to:

Vespasian,

I’ve put together 3 different posts, two from me, one from NeoRio1

Quote from Redneck trader:

Vespasian,

No measure is too extreme if you want this (read into this statement what you will)

Take the above statement


Add to it one of my posts in another thread about following my rules

Quote from Redneck trader:

FWIW Sir


I punished myself every time I broke a rule, no matter how small the rule - And I punished myself especially hard if I broke a rule and made money



Now following the rules is more important than any trade's outcome


btw - I don't believe you can learn discipline, I believe you become disciplined by defining and following a set of rules

Redneck

Take the below from NeoRio1

Quote from NeoRio1:

Go to the gym.

Go to the free weights section.

Find a guy that can at least bench 350.

Befriend him and tell him you will pay him to punch the living shit out of you for a 10-20 seconds.

Every time you break your rules call him over and get beatin to a pulp.

You won't break your rules after that. I am somewhat serious. Unorthodox methods of finding a way in order to not break your rules is essential. Think of yourself as an Arab women. If you break your rules and make love to another man you will be stoned to death. Your capital is your life. Get some discipline.

Can you be happy not making one trade in a single day? If you have to trade like some addict then you will never make it.

And I’ll tell you straight up – I am totally serious






See if this sounds familiar to you Sir..

Price going one way – it hesitates – may retrace ever so slightly – then moves back in the original direction – stops heads back (retracement) just a bit – you enter – damn entered the wrong way – as it continues back again - in its original direction

(Commonly known as trying to pick tops / bottoms)


OR

You enter – trade goes with you – you get nervous – you exit

You enter – trade goes against you – you become calm – almost eerily so


AND

At, or almost at, the EOD you look up at the chart and all at once everything become crystal clear – as to what you should have done

(Commonly known as NOT living on the hard right edge – and staying “in the present” while trading)



If it does - know I've been there


And take what NeoRio1 and I have said deadly serious



BTW suggestion to reduce share size – IMHO – you can trade 1 share (if you like) till the cows come home, and as soon as you increase your size appreciably – you’ll be right back where you are

Ask me how I know this



Aside

If the trade scenarios I’ve stated above sound familiar – I’ve been there – and You have work to do

If they don’t – I’ll sit down and shut up



Also please know – I’ve eaten plenty of “poo” to get here, except now I call it shit sandwiches – why – it is what it is

(Those last 4 words will mean something to you once you get a handle on this problem)


Like I said if this post makes sense – YOU have work to do

Otherwise I’ll shut the hell up

Redneck

This got me thinking. I recently re-wrote my trading plan. I can now say I have one, and it outlines my basic simple price action setups and how to trade them. And of course, once the trading day starts, something in my head short circuits and next thing I know it's lunch time, I haven't traded according to my plan, and I'm feeling slightly more confused than the day before. So as others have said, tomorrow come hell or high water, I'm trading my setups as planned. I'm gonna do whatever it takes in order to get it ingrained in my head not to trade invalid setups.

 

[Redneck]

Quote from Chris_Anonymous:

This got me thinking. I recently re-wrote my trading plan. I can now say I have one, and it outlines my basic simple price action setups and how to trade them.

And of course, once the trading day starts, something in my head short circuits and next thing I know it's lunch time, I haven't traded according to my plan, and I'm feeling slightly more confused than the day before. So as others have said, tomorrow come hell or high water,


I'm trading my setups as planned. I'm gonna do whatever it takes in order to get it ingrained in my head not to trade invalid setups.

Perfect

The process, and following the process is – everything…, any trade’s outcome is – piddle


From what I’ve read, it takes 21 days of repetitive behavior to ingrain something into our subconscious – so it becomes our default behavior

You’re on a 21 day timer…

Trade well Sir – Win, Lose, or Draw


BTW - Simple is always best

RN

 

[Chris_Anonymous]

Quote from Redneck:

Perfect

The process, and following the process is – everything…, any trade’s outcome is – piddle


From what I’ve read, it takes 21 days of repetitive behavior to ingrain something into our subconscious – so it becomes our default behavior

You’re on a 21 day timer…

Trade well Sir – Win, Lose, or Draw


BTW - Simple is always best

RN

This will keep me accountable. Starting tomorrow morning, I will begin a 21 day exercise where the only goal is to take ALL setups as planned.

I do not care about whether these setups can yield profitability. I do not care about if I make or lose simulated paper money. I do not care about anything for the next 21 days except executing my plan.

Specifically, so all can keep me in line, below are my criteria for entry and exit.

Entry:
- After a HH/HL or LL/LH provided the context is right.

Exit:
- When either my stop gets hit or I reach a minimal profit target.

Again, the only goal is to trade ALL setups regardless of outcome. I will post a chart each day over the next 21 days marking my trades including what I did right and wrong.

 

[Chris_Anonymous]

Okay, better progress since last time.

I went in with a plan and took one trade.

Here's what I wrote:

Trade 1:

9:57am Short @ 2423.75

Entered exactly as planned. Was stopped out but that's not the point, although I have officially reconsidered changing where I put my stop. I entered on a second entry, and I didn't budge. Interestingly enough though, my mind of course had thoughts of chasing another entry after being stopped out. But that's not part of the plan!

So that's the only trade I took according to plan.

I did take one more trade about 10 minutes ago, with no plan at all, and justified it because I have to leave early for a lunch commitment. Doesn't really make sense, but that's what happened.

I was talking to another trader yesterday and he spoke of the importance of listening to what my mind is saying. It's cause and effect, the trades being the effect and me being the cause. If there's internal conflict, I need to pay attention and resolve it.

 

[Redneck]

Quote from Chris_Anonymous:

Okay, better progress since last time.

I went in with a plan and took one trade.

Here's what I wrote:

Trade 1:

9:57am Short @ 2423.75

Entered exactly as planned. Was stopped out but that's not the point, although I have officially reconsidered changing where I put my stop. I entered on a second entry, and I didn't budge. Interestingly enough though, my mind of course had thoughts of chasing another entry after being stopped out. But that's not part of the plan!

So that's the only trade I took according to plan.

This is perfect

Quote from Chris_Anonymous:

I did take one more trade about 10 minutes ago, with no plan at all, and justified it because I have to leave early for a lunch commitment. Doesn't really make sense, but that's what happened.

I was talking to another trader yesterday and he spoke of the importance of listening to what my mind is saying. It's cause and effect, the trades being the effect and me being the cause. If there's internal conflict, I need to pay attention and resolve it.

This means day 1 begins tomorrow



The market, as you well know, is unforgiving… we get lax, sloppy, stupid, impatient, greedy, whatever… we lose money

Execute your plan

====================================

Btw; I define losing money as – me allowing the mkt to take 1 cent…, or more…, above whatever I willingly risk for each trade

RN

 

[Chris_Anonymous]

Writing this early because I have schoolwork to be done.

I was talking to another trader yesterday and he spoke of the importance of listening to what my mind is saying. It's cause and effect, the trades being the effect and me being the cause. If there's internal conflict, I need to pay attention and resolve it.

Continuing with the quoted thought above, I've straightened out some internal conflict. I love the idea of scalping yet I hear people on ET say it can't be done due to commission/slippage, whatever reason... Because of this, I've tried to always create a trading method that relies on the larger price swings rather than scalping, and always to no avail. It's not the strategy, it's me. The internal conflict. Maybe this sounds crazy but it's true. So I finally went with a suitable strategy that fits ME, and of course I'm feeling much more confident as if I just discovered trading again.

With this in mind, I feel it's no coincidence that today has seen much higher accuracy when it comes to plan execution than in the past. This is also the first time I've used intuition/the art of trading to help me rather than strictly the science/method/pretend-robot that I've tried to be. I know what my setup looks like, and if there's any hesitation based on the recent market context (and it's NOT because of fear of loss or some other emotion), I may not take the trade. Anyway, below are my trades/stats.

Trade 1:

Short @ 9:31am @ 2449.50

Entered on the entry signal, exited prematurely because I had not figured out a decent profit-taking target yet. Holding myself to the strictest standards, this would be not following the plan yet, as the plan was refined right after this trade.

Trade 2:

Short @ 9:37 @ 2444.75.

Again, entered on the appropriate entry signal, and this time exited at the proper target. Not a moment too soon or late.

Trade 3:

Short @ 9:40 @ 2440.75, stopped out a minute later.

Took the entry correctly, but price failed to act, and so my stop was moved up to where price shouldn't have gone. It did go there, and I was stopped out, and rightly so. Another well-executed trade.

Trade 4:

Long @ 9:43 @ 2443.50, target hit.

Another entry, this time I started to feel anxious because of the last couple successful trades.
My target was hit however, and that was that.

Trade 5:

Long @ 9:46 @ 2445.50.

Entered correctly, but got stopped out. Nothing to be afraid of, losses happen for everyone. Actually, a fear of giving up profits appeared, but didn't stop me from doing anything in this particular trade.

After Trade 5, I sat out for a while, as the market began ranging, and it was a good call. Probably could have taken a signal or two, but I prefer more confirmation.

Trade 6:

Long @ 10:52am @ 2443.25

Stopped out. Last trade of the day. Execution was fine.

My biggest problem today was hesitation to pull the trigger, but that can certainly be improved. Also, I am not comfortable with the little testing I have done so far. I will be doing more this week and weekend when I'm not working on school. For now though, today has been promising.