Spydertrader's Jack Hershey Futures Trading Journal

[cnms2]

Rockets... You can trade them based on indicators, but you can do it based on channels, volume and price breakout. Most of the time this means to enter late and exit early, staying only short term in the market. Sometimes you may get a good run, but this shouldn't be your goal.

Quote from Pr0crast:

As mentioned in PM guava, I think everyone in your position should focus on honing the absolute beginner level of skills, taking the lowest-risk trades to reduce anxiety/stress and build confidence, experience, and account. I'm confident Jack would say the same. This would mean focusing on taking 1, 2, maybe 3 of the clearest PT3 entries in a day when pace is above a certain level, using only the ES Price and Volume. If you can get this down you will feel less pressure to succeed at the more complicated stuff, and as a consequence it will be easier to integrate when the time is right, because your emotional burden will be lifted.

 

[Pr0crast]

Agreed, rockets are definitely an option, but if one has the ultimate goal of getting further with the skills taught within THIS journal, I would imagine it might be wise to shy away from indicator methods. Still an option though, of course, and it has definitely worked for some (easyrider obv).

 

[Bearbelly]

One thing for sure. If you are feeling panic you should not be trading cash, period.

 

[8833broc]

Afternoon trades and chart. Very choppy and difficult trading today. Washed for the day. My entries were based primarily on when I saw an increase in Volume on the chart and the price relative position in the channel. Exits were based on lack of follow thru volume in the trade's direction plus price movement or lack of one.

Just watching the rest of the day.

 

[Tums]

people are getting ready for the long weekend

 

[Haroki]

Yeah, really low volume

 

[Tums]

My pilgrim's progress:

1. read journal material
2. EOD: draw tapes and channels, gaussian, annotation
- compare charts with Spyder's. make corrections as needed.
- post chart on journal as reference

3. EOD sim in hindsight: if I were at that moment, I would have... (long/short/exit).
- Write down notes on why: what signals prompted me to such decision?
- are the signals consistent? if not, what are the exceptions?

4. Real time: draw tapes and channels, gaussian, annotate in real time
- compare chart with Spyder's EOD. make corrections as needed.
- Debrief: why is my chart diff from Spyder's?
- post chart on journal as reference

If I could annotate a FTT, BO, etc., within 5min, then I can move into sim.

5. sim real time (edit: 1 contract only, don't scale in/out)
- Take every signal. Don't look at PnL.
- (edit) take notes along the way

- Debrief: categorize the trades into:
--- time: morning, noon, afternoon (which time frame do I get more success?)
--- long, short (most people like to short!)
--- trades made before/after reports (am I a gambler?)
--- duration: time in trade
--- review MFE/MAE (am I holding on to my losers?)
--- trades according to JHM / trades not according to JHM (don't blame the teacher)

- Debrief: trades I should have made, but did not
- make notes on why the trade was not taken:
--- not enough time to react? (mmm... I should return to annotate only)
--- totally oblivious to it until afterwards? (it happens)
--- looking at the wrong direction at the time? (am I a perma bear?)
--- doubt? wanted another confirmation? (why am I here?)

- Debrief: what additional tools are at my disposal?
--- YM leads ES
--- Str/Squ
--- Wall on DOM
--- tic chart, 2 pairs & Spike
--- Flaws
--- Harmonics
--- ... etc.,

6. reread journal material


After 3 months of consistent JHM sim profit, then one may contemplate trying real money...

 

[Steve Tvardek]

Tums I agree with 1-4 however if you can get the basics down of correctly drawing channels, correct understanding and correct analysis of volume and how it relates to price and knowing how to use the PRV tool, then I think you should skip SIM entirely and go straight to live trading BUT ONLY the very basic pt 3s, the easy layups and nothing more. Watch the rest of the day, take notes and debrief at the EOD. After only snagging the lowest hanging fruit and consistently with REAL $$$ on the line can you then venture to adding a couple new scenarios as you see fit. All the time spent in front of the screen with real $$ in play on the very basic situations will only increase your understanding of what takes place everyday. Knowledge builds on knowledge and confidence breeds confidence.

Im a big proponent of not simming, I dont think it helps and it certainly wont really prepare you mentally for when your real $$$ is in play. I dont know I guess humans just attach so much to their hard earned dollars that seperating the trades from the money involved is incredibly tough for the vast majority of trader. The only way to get past this is to trade live and get used to the idea of real $$ out there (once prepared of course). Thats why taking only the easiest layup trades is the best way to ease into the game.

 

[Haroki]

Not too exciting, but again, being a little distracted makes watching ES much easier. Slows down the thought process and prevents me "going too far down the bunny hole", IMO.

Anyways, purple CO channel ruled for most of the day. Orange had some effect too, a multi hour "CCC" ensued. Nice to have those in there.

 

[cnms2]

Maybe, if you want more feedback, you should pick only one of your trades for which to explain why you entered, why you held, why you exited. You should probably pick one of the trades that you're more unsure about.

Quote from 8833broc:

Afternoon trades and chart. Very choppy and difficult trading today. Washed for the day. My entries were based primarily on when I saw an increase in Volume on the chart and the price relative position in the channel. Exits were based on lack of follow thru volume in the trade's direction plus price movement or lack of one.

Just watching the rest of the day.