The price action facebook journal
- Thread starter amitman
- Start date
He is going through the typical process that most people seem to go through. Trading one stock in one way in one day is not a good idea. Even/particularly traders need diversification.
What is the mean of your winner, the mean of your loser, the standard deviation of each?
Yup
So how about some more seriously
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Without exception, your lines appear as if they were made after the fact (and please donât take this as I making accusations)
Iâm simply offering feedback based on what I see
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Without proper lines â it damn near impossible to get the entriesâ¦, or exits correct
PA unfolding.., in conjunction with proper line placement â builds into an entryâ¦,
And as it does.., where to properly place the stop loss also becomes evident
Simply stated; (I'm a rather simple minded guy)
Building correct context.., based on unfolding PA â results in proper entries and stops loss placement
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Do above by;
Consistently reading the chart left to right.., and placing lines (building context) based solely on PA
While accepting some bars will deserve a line connecting them to previous bar / barsâ¦, while other(s) will not
Note;
Get these lines correct enough times â you might find yourself starting to think they are somehow predictive
They are not â you are simply reading PA correctly
And PA constantly evolves⦠as buyers and sellers constantly reassess and do their thing
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Important;
You must know the difference betweenâ¦, and able to recognize in real time (iow as they are forming);
A moveâ¦, a pullbackâ¦, a retracementâ¦, a hingeâ¦, a reversalâ¦, a range
May help to think of each as an interim stage (step) building to (evolving into) the next
The forming..., existenceâ¦, durationâ¦, and intensity of each â is what we must be able to identify / gauge / trade
Easiest/ lowest risk trade there is â is entering a move on a pullback â you missed a bunch of them btw
This of course assumes there still remains enough of the move to profit from (Hmmm, wonder how one could determine that)
Note;
These âstagesâ (steps) are not in listed in any sort of chronological orderâ¦, as there is no chronological order
One stage can (and does) evolve into any other stageâ¦, or series of stages â any time it chooses
Which; is why itâs called tradin⦠why we read PA⦠why we use stops.., and why lines are not predictive
Btw;
PA.., is simply the actions of buyers and sellers (it has absolutely nothing to do with you - best you ensure that)
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Nowâ¦, if what I just said sounds like bullshitâ¦, then youâve not near enough experience
This is absolute step 1 â spend the time to work through and understand it
Otherwise all the lines in the world wonât mean diddly squatâ¦, nor will PAâ¦, nor will what PA is trying to tell you
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Seriously enough for ya?? (rhetorical)
Success to You Sir
RN
Thanks RN for your (serious 
) answer.
I agree with what you wrote, also saw some random thought of yours about pullbacks on the other thread, very helpful, thanks!
The lines are drawn in hindsight, as I usually trade through my mobile I can't really draw lines, just "see" them, so the charts I post here are hindshight charts to show my general line of thinking when I took the trade.
However, I do go each day ,when I get to my computer, and take FB or some other stocks (AAPL, TWTR, SPY), and replay the day's data, drawing lines on "real time", and marking potential trades, this helps me to identify the different kind of patterns (i.e. pullback, retracment, reversals, triangles, range) and how to handle them,
I think that doing it, day after day really helps a lot.
For now, as you all see I focus on trading only pullbacks, since, as been said, it's the lowest risk kind of move. You've noticed well that I miss a lot of moves (some are marked in the charts) this is maily due to two reasosns: 1) Lack of confidnce still. 2) Technical issues (unfortunatly)
As I currently don't have any other way to trade except from my mobile, I'll have to just work hard on my confidence, in pulling the trigger, and waiting for my target to be reached.
) answer.I agree with what you wrote, also saw some random thought of yours about pullbacks on the other thread, very helpful, thanks!
The lines are drawn in hindsight, as I usually trade through my mobile I can't really draw lines, just "see" them, so the charts I post here are hindshight charts to show my general line of thinking when I took the trade.
However, I do go each day ,when I get to my computer, and take FB or some other stocks (AAPL, TWTR, SPY), and replay the day's data, drawing lines on "real time", and marking potential trades, this helps me to identify the different kind of patterns (i.e. pullback, retracment, reversals, triangles, range) and how to handle them,
I think that doing it, day after day really helps a lot.
For now, as you all see I focus on trading only pullbacks, since, as been said, it's the lowest risk kind of move. You've noticed well that I miss a lot of moves (some are marked in the charts) this is maily due to two reasosns: 1) Lack of confidnce still. 2) Technical issues (unfortunatly)
As I currently don't have any other way to trade except from my mobile, I'll have to just work hard on my confidence, in pulling the trigger, and waiting for my target to be reached.
See.., thatâs just it.., and what many donât get â this business isn't like any other.., where one can simply work harder and eventually things fall into place
Trading; If one is not doing the exact correct things â over and over â then one is big time screwing themselves and moving farther away from success
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Not reading PA correctly â and/or â not deliberately building real time context properly â leads to haphazard entries⦠and unclear stop losses
Haphazard entries â leads to inconsistent results
Inconsistent results â does nothing to improved confidence â in fact it leads to the exact opposite
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Haphazard entries â also leads to haphazardâ¦, and inconsistentâ¦, stop loss placement
Sometimes it may be a nickelâ¦, next time a dime⦠or 15 cents⦠or 20 cents⦠orâ¦. orâ¦, or⦠and where the hell does it end
Even worse â because the entry not clear..., and neither the stop loss â one might be predisposed to âhangâ in a loser longer
Nowâ¦, in a volatile times â one may very well (and likely does) get away with this â price goes against the position â then bounces back â and glory be weâre profitable
And thinking; yeah babyâ¦I can do this
However in a trending environment â after we've haphazardly enteredâ¦, and hung in that loser â price zooms away
All we end up getting â is our nuts cut off and handed to us on a silver platter
Absolutely no way this is good for confidence â no matter how hard we work
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Aside;
I guarantee during the course of each (and I do mean each) magnificently large losing trade â is a point where â with proper context â one can clearly tell when that trade is not working â and where one could have exited with a small loser
And hell for that matter.., after exiting â would have been free to enter with the move â and collect it
Instead there we sit â either dying from massive hemorrhage â or the repeated "thousandâ cuts
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*IMPORTANT NOTE*
There is a HELLOFA big difference between normal wins & losses comprising each trading session â and inconsistent results
On the surface they appear eerily similar â but once you understand â they are nowhere close to being the same
Nor â do they have the same effect on oneâs psyche â in fact they have the exact opposite (and Iâm speaking from being on both sides of that fucking fence)
There are no words to express the frustration/ pain/ confidence destroyer â inconsistent results imparts within one
Nor are there words to adequately express the confidence instilled by simple normal winning / losing during a session
Which a direct result of deliberately building into each and every entry / stop loss
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Final thought
A move has to be created before itâs made (shocks (aka panic) notwithstanding)
Every one of em
So if one is not building context on that level of detail â then that level of detail is easily missed
And one should never confuse level of detail with moving to ever smaller TFs â this shit doesn't work like that (PA is continuous)
Think of it in these termsâ¦.
Every journey must begin with the first step â if after we've traveled some distance â does that first step somehow mysteriously disappear â Nope
Same can be said for each and every move â the foundation for it â is there (although..., and..., - usually buried in/ by the PA just preceding.., and even surrounding "it" ("it" being the foundation of the impending move) )
RN
I think the numbers are a bit hight (2-3 cps is already after commisions, but it still a very small amout of trades...)
I pay 1.5$ for the first 100 share and then 0.1c for each additional share.
So, for the 200 shares lot I use right now it's 1.6cps (per trade = 2 transections), which is pretty high,
But, as I'm going to scale to about 500 shares lot, it's going to be reduced to 0.76cps, which is considerbly smaller and I think should be OK with my trading style...
Before I answer that I'll give a little background.
This is my second shot on day trading. First one was 5 years ago, did it for about 6 months, finished about break-even, but then had to use most of the money in my account to fund my university studies.
During that last 4 years, I havn't dealt with trading, mainly due to my studies, but did has time to rethink on what was. The main thing I've learned it that I was too busy, finiding trading different stocks, using differnt indicators, things which both didn't fit my style of trading and didn't teach my anything about PA.
When I decided to give trading a second-shot (considering I do have a full time job besides it) I though it would be best to focus. I think that studying one intrument, each day. can teach you a lot. You can see all the kind of moves, trends, chops, panic moves and so on, this very useful experience, if used correctly, can then be later applied to any instrument (Ideally of course, easier said then done).
This method also fit my way of trading which like to fully conentrate on one thing only, at least on the beggining of things.
This, however doesn't exclude the option that, if I do succeed in my trading, Its going to be elaborated to more than 1 stock. I already doing replays on stock that fits me cretrias (SPY, TWTR, P and a few more), but when I trade, I focus only on FB (altough not in one direction as you strangly suggested...)
