Prop Trader Journal

KingDong130 · Jul 14, 2011

Quote from Shanb:

7/14/11

Traded YUM off of the open and did not do too well. I should've stopped trading after having three consecutive losers, but that level 2 can be mesmerizing and lure one in.

Just a suggestion, in the beginning be careful trading earnings stocks while the conference call is on, even if you are listening to it. You might want to subscribe to briefing, its a good site with news and conference call information. Good luck with your trading.

surfer25 · Jul 14, 2011

Quote from Chris_Anonymous:

Something many people have suggested to me is to find a stock that I can trade exclusively and get to know it very well.

This is very good advice. More than one would be even better.

Shanb · Jul 14, 2011

Quote from baggerlord:

Every succesful trader I know recommends trading only one market until profitable. Sounds like a solid plan to me.

Suggestion:

Focus on identifying as quickly as possible if the market is trending or choppy.

If you don't know, don't trade.

Yea I will still work on the tape reading, but not so recklessly as I did today! getting chopped up in that vol can screw with your head. I think I have this as a question that I ask myself before every trade in the SPy...if not I will add it! Thanks

Shanb · Jul 14, 2011

Quote from KingDong130:

Just a suggestion, in the beginning be careful trading earnings stocks while the conference call is on, even if you are listening to it. You might want to subscribe to briefing, its a good site with news and conference call information. Good luck with your trading.

Ya I have briefing, I'll keep this in mind tho...things can reverse direction quickly when the earnings call starts

Shanb · Jul 14, 2011

Quote from surfer25:

This is very good advice. More than one would be even better.

Ya i think so too

, I've been focusing on the SPY since I started and have had good progress with it. I find PA and Vol rule in that instrument and it is very hard to manipulate unlike some of the stocks out there.

Maverick74 · Jul 14, 2011

Quote from Shanb:

Ya i think so too , I've been focusing on the SPY since I started and have had good progress with it. I find PA and Vol rule in that instrument and it is very hard to manipulate unlike some of the stocks out there.

Shan, the SPY is probably the most manipulated product out there. Not intentional but because of the derivative factor. You have the e-mini and the large S&P contract. You have the options on the e-mini. You have the SPX options. You have the SPY options. You have the OEX and XEO options. Then throw in the double and triple ETF's. That's a huge mess man. That's a lot of hedging going on. Then throw in all the damn index spreaders (spoos vs dow, spoos vs nasdaq, etc)

Try the IWM. A little cleaner.

Shanb · Jul 14, 2011

Quote from Maverick74:

Shan, the SPY is probably the most manipulated product out there. Not intentional but because of the derivative factor. You have the e-mini and the large S&P contract. You have the options on the e-mini. You have the SPX options. You have the SPY options. You have the OEX and XEO options. Then throw in the double and triple ETF's. That's a huge mess man. That's a lot of hedging going on. Then throw in all the damn index spreaders (spoos vs dow, spoos vs nasdaq, etc)

Try the IWM. A little cleaner.

John, I've had people tell me this before...but I know many people personally who trade the ES daily and do just fine. I've been watching the ES and the SPY for the last month and a half or so and I feel like I would be doing myself a disservice if I just keep hopping around everywhere if I feel comfortable with it thus far.

Shanb · Jul 14, 2011

Quote from Maverick74:

Shan, the SPY is probably the most manipulated product out there. Not intentional but because of the derivative factor. You have the e-mini and the large S&P contract. You have the options on the e-mini. You have the SPX options. You have the SPY options. You have the OEX and XEO options. Then throw in the double and triple ETF's. That's a huge mess man. That's a lot of hedging going on. Then throw in all the damn index spreaders (spoos vs dow, spoos vs nasdaq, etc)

Try the IWM. A little cleaner.

Would you think that the IWM would correlate with the ES. I look at the ES throughout the day and trade the SPY as the derivative instrument. I find that the ES volume and candle prints can differ from the SPY at times. The IWM could be a dervitave trade...of course in context, ill have to look into it. Any opinions tho?

KingDong130 · Jul 14, 2011

Quote from Maverick74:

Shan, the SPY is probably the most manipulated product out there. Not intentional but because of the derivative factor. You have the e-mini and the large S&P contract. You have the options on the e-mini. You have the SPX options. You have the SPY options. You have the OEX and XEO options. Then throw in the double and triple ETF's. That's a huge mess man. That's a lot of hedging going on. Then throw in all the damn index spreaders (spoos vs dow, spoos vs nasdaq, etc)

Try the IWM. A little cleaner.

I agree..

Shanb · Jul 14, 2011

Quote from KingDong130:

I agree..

One of the reasons I was asking about using the ES is because I've noticed that it tends to lead the ETF's at times IE, there are leading indications in the PA and especially the volume that can give cleaner indications.