The Sixth Dimension- Reaver's Trading Journal

Okay currently flat. Had decent profit on Swissie due to scale in (easier to hit a moving target with a shotgun than a rifle)...pretty much broke even on the first entry, but the two subsequent entries yielded a decent profit as the high (or low if in spot) prices were quickly rejected.

In case anyone says I'm dumb for "averaging losers", that's not what my main intent is, I generally (but not all the time) find my intended position size, and then divide that into between 1-3 entries.

So when I "add to a loser" it's part of accumulating my intended position size, not merely wishful thinking...

Sometimes I end up averaging winners too. lol

This helps lower the importance of perfect entry timing.

The more things you can do in trading to lower the requirements of perfection, the better off you will be.
 
Oh, I do have short orders in for the Aussie Dollar at 0.8970 and 0.90...just got filled on the first one.

Taking just a small position, most of my trades during this volatility are small to prevent any catastrophes...big enough so I'm forced to pay attention and trade well.....but small enough to where I'm not having to take rolaids if anything crazy happens (like Bernanke making an "emergency" speech, etc).

Great for learning.
 
Quote from cabletrader:

On the contrary, when the market is like this I believe it makes perfect sense.
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With this kind of volatility and whipsawing, I agree.
 
Still short Aussie, not filled on the second order, which is still in place to short at appx 0.900...

Hasn't done a thing all day.
 
Today has been an example of why it's such a good idea to trade very small in an erratic market like this.

Stops are close to being hit on the Aussie, so we'll see what happens.
 
Okay here's a small update.

I have been laying low in the market. I have made a few token trades in the Euro, Swiss and Pound. Some good some bad.

I have been trading very small- just enough to make sure I take these chances to observe, study, and learn seriously.

I don't want to claim the decent trades I've made here because that makes me look like an asshole. Not my style. I have pretty much been treading water the past few weeks...which is better than losing, which is very possible in this kind of market. Easy to get carried away and stubborn in.

Market conditions seem to be firming up a little (relatively speaking) so maybe there will be some good trades come along for me. Once I start seeing them again, I'll be more active with the journal.
 
This morning, I initiated a small short position on the Euro. Looks like even though the US stock market and Euro are rallying, the Euro got rejected at last month's balance area. Overall momentum is slightly to the downside in the Euro, and the attempted up move looks like it was rejected pretty hard, which gives more credence to thinking a downside move is more probable than a continuation of the rally.


This is not really what I'd consider the most high probability of trades, but in this recent market, my general style of trading hasn't really been viable due to volatility.

The main attraction of this trade for me is the asymmetrical risk/reward ratio, since if price does end up going higher, it will breach last months balance area and most likely begin bracketing again. So if I see any signs of acceptance above the 1.4600 area for a meaningful period of time, I'll close this one out with a small loss, but if the rejection is legitimate, there is significant room for a downside move.
 
Quote from Reaver:

This morning, I initiated a small short position on the Euro. Looks like even though the US stock market and Euro are rallying, the Euro got rejected at last month's balance area. Overall momentum is slightly to the downside in the Euro, and the attempted up move looks like it was rejected pretty hard, which gives more credence to thinking a downside move is more probable than a continuation of the rally.


This is not really what I'd consider the most high probability of trades, but in this recent market, my general style of trading hasn't really been viable due to volatility.

The main attraction of this trade for me is the asymmetrical risk/reward ratio, since if price does end up going higher, it will breach last months balance area and most likely begin bracketing again. So if I see any signs of acceptance above the 1.4600 area for a meaningful period of time, I'll close this one out with a small loss, but if the rejection is legitimate, there is significant room for a downside move.
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Still short the above positons. Nothing to report, they haven't gone anywhere, and stops haven't been touched. We'll see what happens tomorrow after these past couple of up days in the US stock market. Could get interesting.
 
Quote from Reaver:

Still short the above positons. Nothing to report, they haven't gone anywhere, and stops haven't been touched. We'll see what happens tomorrow after these past couple of up days in the US stock market. Could get interesting.
More...

Looks like I was wrong thus far. I went ahead and closed out short positions, as it seemed price was being accepted at the higher levels for now.

Took a loss on these trades, but I was trading small just for this reason. This is uncharted territory for me (this type of market) so I am trying to get amongst it, but not be stupid with my risk.

No rush, another trade will come along soon enough.
 
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