Pete's Place
- Thread starter PetaDollar
- Start date
Do you think it is better to practice what I was doing before, or what I am doing now? An honest question.
I think what I am doing now is better, more like evolution than switching from system A to system B.
I met a very successful emini trader recently and I've aligned my trading to some of his basic beliefs about how discretionary trading should work (not to his system, which I have no idea about).
I traded very badly today.
On the chart I drew the trendline from the morning high to the first failed pullback at 8:46 CST.
After that, I consider a legitimate short to be an entry from a retouch of this trendline. I've marked three that followed. I actually got this second one, but I honestly don't know why. I didn't have the line drawn at the time.
Instead I had three lousy short entries marked on the chart.
Lousy because they were taken during clear sideways motion.
I was way too emotional this morning.
For tommorow my goal is to calm down, look for the trend, and hop on board in places that make sense.
On the chart I drew the trendline from the morning high to the first failed pullback at 8:46 CST.
After that, I consider a legitimate short to be an entry from a retouch of this trendline. I've marked three that followed. I actually got this second one, but I honestly don't know why. I didn't have the line drawn at the time.
Instead I had three lousy short entries marked on the chart.
Lousy because they were taken during clear sideways motion.
I was way too emotional this morning.
For tommorow my goal is to calm down, look for the trend, and hop on board in places that make sense.
Improvement, but still nowhere near where I need to be.
I identified three entries of dubious nature, shown on the chart.
It is possible, and necessary, to have no such trades. That is my goal for tommorow. I want to write that all of my entries were justified.
Problems with my trading that I can eliminate:
I am taking these in order. Working on the first one right now.
Another note. Putting aside my laundry list for the moment, I love the way i'm trading right now. "On the fly pattern recognition." It's really what I'm suited for. After I get rid of the bad stuff I'll discuss this good stuff. I don't want to lose focus right now.
- Unjustifiable entries
- Unjustifiable exits
- Getting locked into one mindset when searching for entries, then missing a great entry on the other side
I am taking these in order. Working on the first one right now.
Another note. Putting aside my laundry list for the moment, I love the way i'm trading right now. "On the fly pattern recognition." It's really what I'm suited for. After I get rid of the bad stuff I'll discuss this good stuff. I don't want to lose focus right now.
Pete's Trading Process
Technical Details
Step 1 involves swimming through different tick charts
to find something that looks clean and makes sense.
Step 2 means getting a good s/r level or trendline to lay into.
Step 3 means watch the price action, OBV, T&S, and
breadthalizer trends very carefully.
Laws of the Land
[1] What's going on?
[2] If I figure it out, I plan an entry and figure
what the market should do after that entry.
(If I don't figure it out, take a break, come
back, look again. Look at something different.)
[3] Upon entry, I switch to "What's Happening Now"
mode. If it runs counter to my plans, even the
slightest bit, i'm out, regardless of P/L. No
"stops to breakeven and pray."
[4] Corallary to rule 3. If the market is working
like I thought it would, stay in, regardless of
the amount of P.
Technical Details
Step 1 involves swimming through different tick charts
to find something that looks clean and makes sense.
Step 2 means getting a good s/r level or trendline to lay into.
Step 3 means watch the price action, OBV, T&S, and
breadthalizer trends very carefully.
Laws of the Land
[1] Price is king.
[2] Drill instructor inspection trader, not lawyer trader.
[3] All thinking about what the market might do ends with trade entry.
[4] Trade touches/bounces, not breakouts.
[5] Trade with, and respect, the trendline.
[6] Look at P/L only after 4:15 EST.
Sorry, still didn't get it right today.
I chased a couple of breakouts, which is bad for two reasons:
one, I don't trade breakouts; two, chasing is bad anyway.
Aside from that I had one entry, in the system, but really a lawyer entry. Plenty of evidence against it.
All shown on the attached chart.
Well, the 600-tick was the place to trade NQ today.
Look at those nice, trendy candlesticks. Texbook stuff for most of the day.
Even though I did well with this after finding it today, it was
not enough to make up for the losses from those dubious entries.
Hence my focus on getting rid of them.
Look at those nice, trendy candlesticks. Texbook stuff for most of the day.
Even though I did well with this after finding it today, it was
not enough to make up for the losses from those dubious entries.
Hence my focus on getting rid of them.
I missed it.
I'm looking at the first green hammer, if that's what you're looking at. Wow, I see it now. At the time I was doing well shorting off that decending trendline.
So missing that divergence is that 3rd problem on my laundry list: getting caught up on one side, missing a great opportunity on the other.