Tips on the Mental Game

Forgot one

Ambush points, like confluence without the mumbo jumbo indicators right?
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Here is exactly what my charts contain

Price - on each chart

Volume - on one chart

An EMA - on my trading chart

Time - on a couple of charts

Horizontal and diagonal lines - that match each other - on each chart


RN
 
Quote from BobbiDigital:

Also I have developed a trading plan several times, but then learn more and outgrow the methodology. I'm about ready to give it another go.

I just started scanning for stocks within 5% their 52 week high. I figure there is guaranteed interest in these, so human emotion is involved => opportunity. This should eliminate the real duds. I also have a couple intraday filters to find stocks that have moved 1-2 dollars and then consolidated.

It seems important to find stocks I like on a daily chart and monitor a few for setups intraday. I just started at a prop firm in Chicago and was watching new hi/lo scrollers then trying to analyze its past on the go. Seemed inefficient so I flipped it around.
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No you didn’t make a plan – then “outgrow” the damn thing (ever heard the term revise)

I know exactly why you abandoned it


========================================

Make a flippin plan – trade it – revise it, OFF trading hours – till it works - then stick to it


In it, identify your set ups in such detail that a dumbass redneck could understand it/ them – or a 5 yo – take your pick

Know your set ups like the back of your hand..

Follow your plan come hell or high water

And of course revise it – as necessary – off trading hours only

But before revising - absolutely know it is the plan that is deficient.. and not simply a matter of an idiot executing the plan poorly (no offense intended)


========================================

Intraday – I don’t scan for stocks – I trade a very small universe… and typically I trade one stock repeatedly for a period of months – then move to the next one

I’m not out to be a hero… I trade to make money… one of my advantages is knowing the typical behavior of what I’m trading.

I know its typical behavior because we meet up every day – for months on end

RN
 
Quote from BobbiDigital:


What I stated prior was that inevitably when price fails, say, to move higher thru its 1 minute box it will go look for support at 5 minute all the way to the longest TF etc (understanding it can bounce, drop, or consolidate)





My above statement is more in reference to staying in a trade AND/OR getting into (or back into) a trade. I may have a profit target 50 cents away from where price is but if its vertical move halts on the shortest TF....

how efficiently can I get out and back in the market. Or should I? Can I count on the bounce to take it back thru the high (there's only one spot I know it should bounce or I'll get out, but the strongest ones tend not to revert to this spot). I think stepping back to only the 5 minute TF will alleviate some of this. However those 5 minute TF high/low's can be more more $ than I am willing to risk. (this is why i've been considering a max loss trailing stop, say 10-15 cents but those damn spreads can make it tough)



A. This is where I believe I should be taking 'a leap of faith' - it's a strong stock so this point is the new 1 min low, I'll buy here and anticipate trend continuation (though it could fail or consolidate). I'll try the 5 minute...

B. If I don't do this, I'll end up buying the breakout high correctly, but like I've said it could be correct for 5 cents worth...and crash


Would you say it's more of A. or B. (and just getting better at it with the help of longer TF's)?
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Quote from Redneck:


Horizontal and diagonal lines - that match each other - on each chart


RN [/B]
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Could you expand on this?

This made me think of the interesting way in which the diagonal lines interact with one another. I'm not very smart so I haven't figured out the dynamics yet - if you draw trendlines on the daily, hourly, 15 minute, whatever, they don't match up with each other. They have different slopes - Price could be hitting the daily chart trendline but that same daily trendline, on the hourly chart, doesn't match up.

How do you match 'em...is one correct? i would 'guess' the daily
 
BD

Regarding the two above posts – I will respond to both…, but before I do... Please complete the following for me

=====================================

With regard to intraday trading specifically…. How do you utilize, (if at all) the following charts;

======================================
Iow – I’m asking next to each chart below, you describe

The function / purpose it serves you

The amount of emphasis/ importance/ focus you place on it

for/ while day trading

=====================================

Monthly Chart –


Weekly chart –


Daily Chart –


1 Hour chart –


5 minute chart –


1 minute chart –



Thanks
RN
 
Monthly Chart –

Almost zero - I just have daily, hourly, 5 minute, 1-2 minute

Weekly chart –

Almost zero

Daily Chart –

Highly significant, 6mos - 1 yr. I look for stocks that have shown me they are going in a direction for a reason - there are a couple patterns, if price reversed direction or broke at key areas, I anticipate being 'completed' or 'continuing'

1 Hour chart –

Essentially the same importance and function as the daily, the last 2-4wks - Just focusing on areas I believe I can catch moves early. Multiple tops/bottoms, some kind of 'clean' looking chart

5 minute chart –

A little less important. Here I'm watching the previous 3 days or so for the same above and potential plays off their highs/lows.

1 minute chart –

I watch this because it's real time. The other data is just a couple seconds behind. Here again, where can I find price moving for a reason being supported along the way. In addition, it should offer a risk of 1-15 cents or so. I mostly risk right off a new high/low (don't want intraday chop)

I pay attention to the open price. I don't really want to go against it unless a stock has moved 1-2 dollars + and I anticipate a reversal in the S&P - then it at least has room to run

I feel I understand how price moves out of agreed upon areas by buyers and sellers. Where it must be supported and what to anticipate based on these responses...after that it's going to do what it's going to do.
 
Recall I remarked your approach is bassackwards – the above confirms it

You're essentially ignoring the overall picture (the most important higher order S&Rs… Ranges… Direction) and instead focusing on the minutia



I would also submit – you may be paying attention to the opening price, but in the bigger picture – have no idea which way price is really headed.. of how it is likely to move along its way of getting there


=====================


Simple observation

Saying you won’t go against a stock unless it has move 1 -2 dollars...

Is akin to saying price moved this far so its time to short as it can’t go any further

BS... Many traders have gone broke thinking/ trading like that

And it’s immaterial whether you’re anticipating the S&P is reversing or not – ever heard of decoupled movement

=====================


I feel I understand how price moves out of agreed upon areas by buyers and sellers. Where it must be supported and what to anticipate based on these responses.
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No Sir – imho you really don’t

=====================


Below are two links

The first will give you a way to bring in the bigger picture… the second, how to execute within the bigger picture


I respectfully recommend you tear into them... break em down and work to understand their content

Ask any questions you have


http://www.elitetrader.com/vb/showthread.php?threadid=215130



http://www.elitetrader.com/vb/showthread.php?threadid=235350

================================

I’ll answer your two posts above next

RN
 
Quote from BobbiDigital:

Quote from BobbiDigital:


What I stated prior was that inevitably when price fails, say, to move higher thru its 1 minute box it will go look for support at 5 minute all the way to the longest TF etc (understanding it can bounce, drop, or consolidate)





My above statement is more in reference to staying in a trade AND/OR getting into (or back into) a trade. I may have a profit target 50 cents away from where price is but if its vertical move halts on the shortest TF....

how efficiently can I get out and back in the market. Or should I? Can I count on the bounce to take it back thru the high (there's only one spot I know it should bounce or I'll get out, but the strongest ones tend not to revert to this spot). I think stepping back to only the 5 minute TF will alleviate some of this. However those 5 minute TF high/low's can be more more $ than I am willing to risk. (this is why i've been considering a max loss trailing stop, say 10-15 cents but those damn spreads can make it tough)



A. This is where I believe I should be taking 'a leap of faith' - it's a strong stock so this point is the new 1 min low, I'll buy here and anticipate trend continuation (though it could fail or consolidate). I'll try the 5 minute...

B. If I don't do this, I'll end up buying the breakout high correctly, but like I've said it could be correct for 5 cents worth...and crash


Would you say it's more of A. or B. (and just getting better at it with the help of longer TF's)?
More...

Neither

I know the longer TF S&R and direction

I know the intermediate S&R and direction

I know where price is, and what its doing on my Trading TF – in relation to the above


I build context using horizontal and diagonal lines

I determine if price is acknowledging my context – if it is – I use it..., if not I redraw it till I get it right

==============================================================

On a separate note

There are times time to buy highs… but there are also times to short em

There are times to short lows – but there are also times buy em


Context and reading price will tell you when its time….. guessing never will

======================================================================================

I recall a time when I used to trade on faith… “Lord just get me out of this loser with a small loss and I’ll never do this again”

I no longer trade on faith - leaps or otherwise

RN
More...
 
Quote from BobbiDigital:

This made me think of the interesting way in which the diagonal lines interact with one another.

I haven't figured out the dynamics yet -

if you draw trendlines on the daily, hourly, 15 minute, whatever, they don't match up with each other.

They have different slopes - Price could be hitting the daily chart trendline but that same daily trendline, on the hourly chart, doesn't match up.
More...


Yes, they must have different slopes as there is more information contained within the same number of bars




How do you match 'em...is one correct? i would 'guess' the daily
More...



By, having a set way of drawing lines… by eyeballing… and by ensuring the lines always cross at the same price point(s) across the various TF charts

============================================

Take some time and practice drawing lines – soon it’ll become second nature…

You may even pick up some interesting tidbits about how price moves over/ through different TFs (hint..)

RN
 
RN,

Interesting how properly drawn lines tie together the story. Low risk bets could be nothing more than Geometry - it was always my favorite subject

I'm trying to work thru many questions on the technicals I could bombard you with on my own for the time being.

Just one question - as you follow price, are you concerned with cycles (Hurst or whatever)? Since PA can be repetitive (I look for those I 'see') so I was just curious because timing can be the most difficult part. Don't mean to get ahead of myself.

BD
 
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