Prop Trader Journal

I think there may be a misscommunication by what I mean by gut. Seems like someone misunderstood me and everyone tagged along lol. When I am trading..I am trading with PA and vol. However, I am consistently using three setups when trading. I have mentioned some of them in the journal. Selling L1 and L2, Buying H1, H2. Also entering on breakout pullbacks that confirm with price action(inside bar, bar pattern configuration). The discretion comes in when I decide what setups to take. There will be innumerable setups that happen throughout the day..it depends on which are taken. I also look at Volume...simple volume should increase in the direction of the trend and decrease on pullbacks. Many different volume patterns(divergence, climactic) I just apply which ever one fits in context. Using primarily the 5 min and 1 min for confirmation on volume.

The setups are there....the context is up to the trader to define(Trend, R:R, S/R)
 
Quote from ksmetana:

The open is hard and not good for new traders imo. Use the open to identify the right stocks to watch. There is too much volatility, let the stocks / market show its hand and make an informed decision, not a gamble.

I also agree that your gut will fail you because you haven't seen enough scenarios. Trades can progress in many, many ways.

I think I read you are a member of Trading Raw or something. I didn't know what that was until I looked it up. I watched some of his youtube videos, and while the guy is obviously profitable, he takes some pretty big risks. He is able to do so because he has a gut for pain and lots of experience and conviction. You can probably learn good stuff from him, but it will be hard for a new guy to implement in my opinion. I was watching the videos and telling myself that this guy would have blown my account up quick if I was new.

My advice is to choose setups you are comfortable trading, and stick to them. Starting trading new setups as time goes on with light size. At this stage in the game, you're watching and developing your skill set. I tell you this because when I began, I traded all sorts of stuff, used my gut, and I paid for it. If I could do it all over again, I would have written out a clear plan and started trading only certain setups. Doing so teaches you to be selective and patient.

Market action and office activity will draw you in. You need to learn to shut it out, remain calm and rational, and maintain your focus on your plan. The market and office hype has sucked me in time and time again.
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Yea Bano is a profitable trader and he doesn't necessarily take big risks...he manages his trade knows when to cut. He trades large too so he must scale in. I have been having a hard time applying the tape reading I have learned there, nonetheless it is a good tool ya know.


I hear you on the office environment! sometimes I just itch to find a new trade, especially if i am already down on the day...have gotten better this past week tho!
 
Setups/Conditions/Patterns

Here is a chart that shows some of what im looking for.

*Note shorted the L2 towards the end of the day. Volume divergence with a reversal. SPYs feeling like they were turning with many of same characteristics of above chart.
 

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Quote from Shanb:

I think there may be a misscommunication by what I mean by gut. Seems like someone misunderstood me and everyone tagged along lol. When I am trading..I am trading with PA and vol. However, I am consistently using three setups when trading. I have mentioned some of them in the journal. Selling L1 and L2, Buying H1, H2. Also entering on breakout pullbacks that confirm with price action(inside bar, bar pattern configuration). The discretion comes in when I decide what setups to take. There will be innumerable setups that happen throughout the day..it depends on which are taken. I also look at Volume...simple volume should increase in the direction of the trend and decrease on pullbacks. Many different volume patterns(divergence, climactic) I just apply which ever one fits in context. Using primarily the 5 min and 1 min for confirmation on volume.

The setups are there....the context is up to the trader to define(Trend, R:R, S/R)
More...

Can you show me a chart of what you mean by selling L1 and L2 / Buying H1 H2????

And on breakouts, you let them breakout and then buy the dip? I don't like that technique, you miss the best breakouts. If anything, you should buy a dip before the breakout level...

If a breakout dips back to a good entry price, its not a great breakout... But that's just me, I know it is a popular technique, I just feel you miss out on $$$$$
 
Quote from ksmetana:

Can you show me a chart of what you mean by selling L1 and L2 / Buying H1 H2????

And on breakouts, you let them breakout and then buy the dip? I don't like that technique, you miss the best breakouts. If anything, you should buy a dip before the breakout level...

If a breakout dips back to a good entry price, its not a great breakout... But that's just me, I know it is a popular technique, I just feel you miss out on $$$$$
More...

I have some on the above chart...a L1 is the first 5-minute bar that goes below another on the leg of a pullback. L2 is the second. H2 is reversed with buying in an uptrend. so I wait for the bar to break. just helps for confirmation. Or I may enter if volume confirms before. The breakout pullbacks I wait for and inside bar or L1 to break and swipe in with the momentum plays. Stop should be to be because if it fails after the move starts then momentum is not there.
 
Quote from ksmetana:

The open is hard and not good for new traders imo. Use the open to identify the right stocks to watch. There is too much volatility, let the stocks / market show its hand and make an informed decision, not a gamble.

I also agree that your gut will fail you because you haven't seen enough scenarios. Trades can progress in many, many ways.

I think I read you are a member of Trading Raw or something. I didn't know what that was until I looked it up. I watched some of his youtube videos, and while the guy is obviously profitable, he takes some pretty big risks. He is able to do so because he has a gut for pain and lots of experience and conviction. You can probably learn good stuff from him, but it will be hard for a new guy to implement in my opinion. I was watching the videos and telling myself that this guy would have blown my account up quick if I was new.

My advice is to choose setups you are comfortable trading, and stick to them. Starting trading new setups as time goes on with light size. At this stage in the game, you're watching and developing your skill set. I tell you this because when I began, I traded all sorts of stuff, used my gut, and I paid for it. If I could do it all over again, I would have written out a clear plan and started trading only certain setups. Doing so teaches you to be selective and patient.

Market action and office activity will draw you in. You need to learn to shut it out, remain calm and rational, and maintain your focus on your plan. The market and office hype has sucked me in time and time again.
More...

you are right on the euro money.

i salute your money and time saving advice for those eager beavers, not only those learning how to trade but also for those learning how to trade profitably....

3 cheers sir/mam :eek: :eek: :eek:
 

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Quote from nakachalet:

you are right on the euro money.

i salute your money and time saving advice for those eager beavers, not only those learning how to trade but also for those learning how to trade profitably....

3 cheers sir/mam :eek: :eek: :eek:
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LOL...this eager beaver salutes you Kurt! ;)
 
Quote from atlTrader666:

The job is a grind. It will become painful when after so many hours, days, months your P/L will seem totally random or even worse. Your only true edge in discretionary equities trading is playing the right stocks. The stock market is too efficient to be traded in the short-term but at least your learning a certain asset class.

There's a lot of chance involved in trading. Unlike sports or music, where your performance will almost definitively improve after months of practice, in trading it is possible that it will get worse... that is a testament to the randomness of the market.

My advice for you is to use this experience as a platform into getting better jobs in finance... it will teach you a lot about persistence and psychology. You will also learn about publicly traded companies. I highly recommend you also incorporate some macro research of other assets; intermarket analysis among say the USD/EUR, Treasuries, Crude Oil, Gold, etc. Take EOD data and run correlation tests in Excel.

It's impossible to extract money, consistently, and on a daily basis from the stock market... to even break even is a loss considering transaction costs as well as essentially wasting your time. This makes prop trading at a broker-dealer so tough. Try to be very selective with what you trade and how you trade... don't churn and focus on less liquid/high beta stocks intraday that have great volume (except bio-techs).
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Love this post. Lol. Shanb, be very careful where you get your advice. Guys like the above poster should be ignored. Stay focused on what you intend to achieve. Protect your psychological capital. Focus on strengthening/increasing your psychological capital and developing your edge/approach.

Lol @ "the stock market is too efficient to be traded in the short-term..." What a joke.
 
Quote from ElecEquity:

Love this post. Lol. Shanb, be very careful where you get your advice. Guys like the above poster should be ignored. Stay focused on what you intend to achieve. Protect your psychological capital. Focus on strengthening/increasing your psychological capital and developing your edge/approach.

Lol @ "the stock market is too efficient to be traded in the short-term..." What a joke.
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Yes because the 1% of day traders who actually make money are skilled and that's not what you would expect from chance alone. If day traders consistently made money and you add exponential growth (scale-able strategy) the 1% would be billionaires.

To have any edge in the market you need to have great patience and take trades that have good risk-reward. If you think you can trade everyday or consistently in the short-term then you're a jacka$$... otherwise exponential growth would make you the ridiculously rich.

Lol for you to think the stock market, especially the US mkt, is inefficient. It's the most liquid mkt in the world, news comes in an instant, there's a bunch of money managers tracking every tick, a bunch or algo arbs taking advantage of any price inefficiencies, HFT, and you think the stock market is inefficient. Is that why even Pareto's law looks generous when applied to the markets you buffoon lol? If you think that you can extract money from the stock market on a daily or consistent enough basis then god bless you. Enjoy your $10,000,000 house, $3,000,000 yacht, $350,000 car, trophy wife, etc.

Btw ElecEquity, I saw your journal and hope that you enjoy your $1k up or down days after trading 100,000 shares. Those commissions, regardless how inexpensive, are not your friends huh? Please advise the OP how to churn his account and consistently beat the market in the short-term.
 
Quote from atlTrader666:

Yes because the 1% of day traders who actually make money are skilled and that's not what you would expect from chance alone. If day traders consistently made money and you add exponential growth (scale-able strategy) the 1% would be billionaires.

To have any edge in the market you need to have great patience and take trades that have good risk-reward. If you think you can trade everyday or consistently in the short-term then you're a jacka$$... otherwise exponential growth would make you the ridiculously rich.

Lol for you to think the stock market, especially the US mkt, is inefficient. It's the most liquid mkt in the world, news comes in an instant, there's a bunch of money managers tracking every tick, a bunch or algo arbs taking advantage of any price inefficiencies, HFT, and you think the stock market is inefficient. Is that why even Pareto's law looks generous when applied to the markets you buffoon lol? If you think that you can extract money from the stock market on a daily or consistent enough basis then god bless you. Enjoy your $10,000,000 house, $3,000,000 yacht, $350,000 car, trophy wife, etc.

Btw ElecEquity, I saw your journal and hope that you enjoy your $1k up or down days after trading 100,000 shares. Those commissions, regardless how inexpensive, are not your friends huh? Please advise the OP how to churn his account and consistently beat the market in the short-term.
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My man...do you get a kick out of playing the know-it-all. You have given little tid-bits throughout this thread, but they are overshadowed by crap like the above post.

Any type of trading is hard. In order to consistently perform at a top level in this game is HARD. only ~5% of traders make the big bucks because it is hard...it wouldn't be as lucrative if it was easy!! Don't know what point you are trying to make. I know it is hard, but guess what some people get a kick out of trying things that are hard. I like challenges and having a career that challenges me. I DONT want to do something that doesn't stimulate and engage me and offer me a challenge!

I'm sure the guys that make it in this game have a similar outlook!

BTW ElecEquity...your log is great man. Learned alot reading through it!
 
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