Winning in the EMinis

M

MaxMin

This is my attempt to give back to the trading community. This journal is about winning in the EMinis. It is also about winning in general.

No two people are the same. No two people have the exact same life experience, and everybody learns a little differently. What works for me may not work for you, but hopefully you will find this journal insightful in your journey.

It took me 4 years of intense study before the light bulb turned on. It took another year before I finally turned a profit. Every year has gotten easier after the first 4, and the last two have been the easiest yet. My road has been long and hard but the rewards have also been incredible! I wish you luck on your journey.

I'll do my best to respond to your serious comments and questions.

This journal is less about what to do to be a winning trader than it is how to be a winning trader. I hope you will recognize the difference.
 
We all think we are flexible. We think we are detached, flexible and able to adapt to the given situation. The reality of how flexible, malleable, and willing to let go that we truly are is evidenced by a day like 1/28/2004.

When the market takes an almost vertical dive after a major news announcement, you find out the true level of your detachment from your positions and conceptions, and your true willingness to go with the market, rather than to be right. At what point do you recognize that the market is trending down strongly? At what point do you align yourself with the market, not only mentally but position wise as well? If you are long, how long does it take you to get out, and go with the move? At what point are you aware that this is no ordinary down draft? At what point do you admit what is going on? At what point do you stop hoping for a bounce so you can exit? At what point do you stop trying to buy a declining market? At what point do you stop saying to yourself, "it has to turn around?" If you are flat going in, at what point do you recognize the opportunity, yet not act? How long does it take you to act? Are you able to act?

I look at myself after today and see that I am slower than I thought. I am less flexible than I had hoped. I am more greedy than I care to admit. The lead time between when I see the truth about the decline, and when I act is too great. While I did eventually go with the move, I wasted time and price by being overly inflexible.

Recognizing the truth is not the same thing as being true to the truth. Being true to the truth requires action to align your position to the truth of the market. The time between recognition and action is the level of your flexibility.
 
I was faced with somewhat of a dilemma today. I trade reversals in ES and while I did not get a typical signal today, I knew the thing to do was to sell as we sliced through yesterdays' lows. However, to do so would have been breaking my rules. On the plus side, I did not attempt to fade the move which more than likely would have proved costly.

Looking forward to the journal Max.
 
Quote from MaxMin:

Recognizing the truth is not the same thing as being true to the truth. Being true to the truth requires action to align your position to the truth of the market. The time between recognition and action is the level of your flexibility.
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Cool! That is worth requoting. And applies to all aspects of life.
 
Max, sounds like a very cool journal. I'll make sure to read this one. I'm glad your trying to go after what makes a winner. Enough of my jab, good luck around here and I look forward to your insights.
 
Max,

Good luck.

you will be hit hard by alot of negative comments.:mad:
there are alot of losers on this board and they can't stand to see someone post winning trades so be careful.

However, if you post nothing but losers then you will be in great company and will be applauded and crowned the best journal on ET.:D
 
I do not trade unusual events. How could you know this selloff would continue? I have seen many spikes down lately and most of them have bounced right back. If you or anyone knew this would not bounce please explain how.
 
Sounds like an interesting journal . Psychology is the key. Everyone has their own methodology.

About yesterday I kicked myself too for not being short . I would only have been comfortable shorting ahead of the announcement. The problem is even if you are 90% sure it's going down, the initial spike could really put your account down a couple of hundreds even for a minute or two and that's really something difficult to watch or even imagine.
 
Hello,

It's not that anyone knows with certainty. It's about recognizing a change, & acting upon it. It's about knowing your set-up, pulling the trigger when it is there, knowing your risk & setting the stop, & then letting it work! When it gets going like it did yesterday & you got an entry, the big bars are BONUS bars. They're a GIFT, which means they don't come along often. However when they do, for those that remain diligent & persistent, it's the REWARD for that behaviour.


Take Care & God Bless!
 
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