Sunday, February 28, 2010

Friday Lightening Fast Breakeven Scalp

I had to do it. I was reading about a scalping method that I never heard of before. Look for Al Brooks. I had a 2m chart up and I saw the scalp setup near the end of the day Friday. I entered and moved up my stop to breakeven really fast as price was ahead 3 ticks. My stop was hit and luckily, no slippage, only lost on fees and commissions. I remember now, that Al Brooks said that he doesn't go lower than the 5m chart for this method because lower time frame charts have far more entry signals and he can't work them that fast. So I sure was lucky on the 2m BE stop out. And that was it for the day because I was unprepared early. Yea, I did it again, I got carried away studying the new stuff night before in a obsessive studying fit. However, I managed it well by knowing this about myself and not giving in and doing any damage. It was the final day of the month and there goes another one that's almost a gainer. I feel good about March.

Thursday, February 25, 2010

Gained; Hard Day but Good End

Drop premarket continued at the open, then we based for a very long time. Then a vertical 20 point pop took it to another long base. Very frustrating, but I didn't let it get to me. Then that base finally broke out and there was a perfect pullback right down into to the top of that base for a classic entry. I entered and then killed my winner instead of letting it run. Price moved 8 points, I got one. I think I am getting anxiety due to being under capitalized. However, if I continue to have excellent entries like this, even with small gains, I will eventually be confident enough, have a bigger account cushion, and have less anxiety in the trade to let the winner run.

My emotional state of mind triggered tunnel vision and I was unable to see my increasingly bullish internals that confirmed that the price was strengthening. It all pointed to being able to stay in the trade longer. It still feels like progress because I never let the waiting get to me as I had in prior days, even this week.

So with the goal of less frustration from waiting and missing moves (see earlier post) going well, the next psychological goal is meditating with being long in a winner and not having anxiety and making a list to follow in order by rotating my focus around the screens to actively monitor the state of the market. That's what I'll be practicing for the next few days.

Wednesday, February 24, 2010

No Trades, All Analysis.

Market moved pretty wildly today on the news, but after looking at it some more, I realized that the news seemed to only temporarily take down a chunk of the strong upleg that did continue and then pull back before midday. That's why this chart is so ugly. I over wrote it with corrections to my original analysis.

I also didn't want to trade because, in the past, when I had anything new to look at, I would get excited by that, and try to trade it in place of everything else in my system. Well, I guess I worked enough on that problem, I don't have it any more. I also didn't have that problem when I recently added MACD and Ichimoku indicators on a couple of charts.

What was new, was Al Brook's micro trend lines and his H1, H2 and L1, L2 breaks from them.

I ordered his book on Amazon; also got the 1st 50 pages from Wiley. Just discovered T2W. It looks like a really large and active site, where have I been?

Back to reading now. I know I missed a lot of entries today, and the work that I did yesterday really, really helped me be OK with not trading the big moves today and not freaking out about it. I am dedicated to progressing thru any and all remaining issues that I have. Intensity hopefully won't alter my being in "mind #1" (see Psychology of Trading) but if I think it might, then you can bet I won't be trading. Enough, back to studying.

Morning; Been Meditating on Missing Moves as Well as Communicating With the Trading Community.

It's pretty cool to be able to add to my coping skills, the ability to reach out and communicate with the trading community. see Dr. Brett's Coping.

I made an index card regarding missing moves:

Missing Big Moves is a Fact
They help you find the direction
mm happens all day & night and in LIFE
mm is ok, it is a challenge, you may have only missed the start, so stay focused
(potential setups may include: 123, doji, pause, micro trend line)
mm is a part of my system
mm is better than losing in high volatility
Get over it
mm could lead to a setup when done

I have been constantly placing my mind in the trading position of looking at my monitors and visualizing that I just missed a move and I have been reprogramming myself to not care, not react, not allow it to bother me. Technique from Dr. Brett's Step 4 in Coping post.

I also discovered an awesome post in the blog of, My Trading Edge, that has a video by a guy I never heard of, Al Brooks, and I ordered his book on Amazon. I already incorporated his MICRO TREND LINE into my system. I combined it with NYSE TICK extremes and will be observing it today. Thanks to My Trading Edge for that!

Have a good day, traders. - J

Tuesday, February 23, 2010

A Loss, a Gain, and a Goal; Tech & Psych Today.

After the opening volatility there was a nice flat 2m base and we were all waiting for the Consumer Confidence report. The base broke, I watched. 20 point NQ drop in 15 minutes. There were a couple of pauses that were entries, but I've never been able to trade these am moves that we have had for a long time now because my trading plan calls for using established support and resistance of intraday internals that haven't printed yet.

In the low volume, low volatility, no opportunity aftermath, I was analyzing and started thinking how all of the internals never seem to align much lately and how my system is difficult to follow for that reason. I was wondering if there was a priority or if it is so discretionary that I might as well just follow price. What I didn't realize is that I was feeling frustrated from missing the move and I allowed it to influence my behavior, an old habit. So without confirmation, that my system requires, I anticipated a double bottom, went long and got stopped out. It took a while for me to figure out what happened. At first I thought it was just a good stop but as I realized and documented everything, it was a painful mistake.

After lunch I was almost fully back to the right mind. Found the bear flag, saw that it failed and there was a bull flag following it. I didn't enter after the bottoming tail bar long, that was a nice signal that I noticed too late. Then I was given a lot of extra time, as price was going slowly, to enter the first pullback after the bull flag uptrend confirmation. Small gain, but it really helped.

I then documented again, and missed the next couple of dips that also followed thru, but I was just glad to have recovered.

Experience today shows me that I need to realize how much I am affected by not being in on a large move. I keep trying to rationalize it away so it won't affect me, but that doesn't work. Somehow, I need to know it, rather than deny that I am feeling, and then have those feelings sneak in and mess me up. I have to somehow confirm, accept, observe, or admit that I have been affected and then somehow deal with the feelings, in order to remove them or minimize their potential impact, before they affect my thinking. I don't want to give in to them, I am trying to control them, I am trying to say that they aren't there, but since I can't do that, I can try to cover them up, but they are too strong and they influence my thinking and mess me up and I make a mistake.

My plan is to consciously say to myself that I saw a large move. That's a start. It is getting me into that feeling already. Then, I will say to self that my trading plan does not include that large move, however my plan does have an edge that works. Then I will put the index card up that says, “The plan works, bring up the documented charts with all the gains of my plan from the past.” Then I'll pull them up, or remember them.

Question: Does anyone know where Dr. Brett Steenbarger references this in his 3 books? I have them all and I'll be searching tonight. It could be that this is everywhere in them. Leave a comment, thanks. - J.

Monday, February 22, 2010

All Psychology Today; Bad News Good News

Summary: Up late, schedule was off, stuck to rule of no trading if not sufficiently prepared. Didn't trade, learned a lesson, no regression, am session messed up, stopped at noon, (another rule, no midday trades bc of low volume little follow thru) tried pm session, had low energy, passed on some setups that actually followed thru. Missed the big one at end of day. No gain, but more importantly, no loss, because I never once regressed or allowed frustration or anger or boredom, etc, to affect my behavior.

Details: Last night I had a weird thing happen, it never happened before with trading. I had anxiety thinking that I might regress and repeat old habits that got me into trouble. So I blogged it and didn't get to sleep on time. I made a plan and put it on the blog. My subconscious worked well for me, I woke up 3 minutes before my alarm exactly 3 hours before market open like I had in my plan. Subconscious works in our favor a lot, luckily. Even without enouth sleep it knew the plan. Then I decided to sleep more. I also decided to miss market action and prepare; in the past I actually did, many, many times, try to trade without the prep and paid for it.

So that's why I say the bad news is the anxiety night before, the schedule lapse, the missing action, the no trading, the less than confident analysis leading to passing some setups, and another day of psych rather than tech. No trading gains.

The good news is that I was disciplined in my control of my errors. I knew what I did wrong, corrected it as best as I could, did not allow it to negatively influence my equity, never once lapsed into poor trading or old habits, knew I was feeling off and decided to not have 100 percent confidence and therefor analyze and work just as hard, but not execute. This may seem to be not so big, but it is for me because of my prior behavior of doing all those things that I managed to not do today. No trading loss.

So I post this even tho it's rather embarrassing for a reason; I actually progressed in the psychological trading realm. I am far much less of a mess today than the prior 20 months. This is ugly, but my handwritten journal from that period is far worse! This is the end of the adjusting, imagine the beginning and middle....

I'm getting that feeling I got Thursday, it may all click soon for me, it may not, but feels good for tomorrow.

Sunday, February 21, 2010

Sunday Night Thoughts Regarding Monday

So something happened last week. I feel different, and I traded perfectly, in the zone Friday. I need to continue that this week. I'm gong to get a little new-agey on it now. I'm having a hard time consciously describing all of these changes that sum up my new functionality. So I am meditating them into a rounded beach stone because it took a long time and a lot of work for the waves and sand to curve the rough edges into this smooth surface. This stone represents the changes I've made and I am anchoring my new polished ability to this polished stone. The intangible changes will be more solid for me to remember and focus on with this rock. It is a symbol of my new reality. It is disturbing how many times I've regressed so I just need to know that I am now dedicated to this card on my desk that says, "Passionate adherence to the strategy is what it takes to succeed." Most likely something I got from Dr. Brett's blog.

So the plan is sleep in 1/2 an hour. Up with 3 hours to spare, prepare, read documents regarding my method, trading plan, items to remember, checklists, and know that I am now doing it right. So I will extend the "passionate adherence" to the rest of the day that takes care of the trader, not just the market hours and trading plan.

Sometimes Mondays are sloppy, I don't have to trade. Feels like time to re-read my good-psychology page.

A Great Post Link and I added 2 Pages on Psych Stuff

While reviewing my new pages on Psych stuff, I remembered that I had read something regarding pain on Dr. Brett's Traderfeed blog. I searched and found it: "...rarely do we stop to consider that trading is creating pain for 80% or more of its participants." Here is the link to his post: Painful Truths About Trading

As I read my 'bad-psychology' new page updates, I realized how much pain was involved in my transformation. I don't think it was a bad thing, since it worked, and I needed to go thru it. I wouldn't change anything considering where I feel I am now. Dr. Brett makes a good point though, that it surely isn't ever going to be mentioned in any list of requirements to get to be an improved trader! I can smile now as I say this. Also, what I went thru is similar, but certainly not a path required for other beginning or losing traders to take. It was just mine, although there will be some similarities, I would hope no one else needs to take that much pain! (still smiling)

There is a need, however, to somehow find out if the process and pain is actually beneficial. In my case, I knew it was. I don't know the answer, but in Dr. Brett's post, he does mention the destructive results some traders end up with, and that is a good warning. My unique circumstances worked constructively for me. I just can't list all of them here. That is where an outside opinion definitely would be worthwhile.

I am going on and on here as if I was a great trader already. So I'll end this here and work hard this week to continue my very small and very recent start at being the trader I need to be. I am very optimistic, however, and I will post my results this week. Gains or losses. Losses or Gains! - J

Friday, February 19, 2010

Good Time Jus Now. Here's the Two Trades I Just Took and Gained. I'll Explain In Later Post.

Just feel like posting this now, before composing an explanation post, like usual. I planned the trade, traded the plan. Ok, the first trade was moving very fast, I advanced my stop to plus 3 ticks like I said I wouldn't, but that's actually ok since NYSE TICK was at an extreme. (BTW, this is only the NQ 100 tick chart so trade lines can be seen since 2m chart they can't be seen because the trade lines happen in one or 2 bars.) So I was processing whether to be upset with myself or not, but somehow I got over that quickly as *** my original plan that I tweeted to Stocktwits started to appear, which was to watch the breakout and take the retrace. so there was the retrace, and just becuase I just exited a trade, there was no reason not to re-enter especially since it was a gainer. (in past mistakes I would be doing screen caps and analyzing) So I took the retrace and decided a modest target here was appropriate considering the volatility, proximity to the end of January's resistance levels, and the NYSE TICK had already gotten extended. So that's my thoughts during the trade as they are fresh in my mind. I do plan to mark up some screen caps with arrows and lines later, but I need breakfast. Good luck traders.

Thursday, February 18, 2010

End of Day Analysis - I Found the Entry of the Day And Screwed It Up But It's Not All Bad

So I am getting to feel better regarding my new lack of urgency to trade and my new lack of compulsion to trade and my new respect for risk and I can go on and on, but that's already in my 800 handwritten pages of my personal journal. The part of today that is not all bad is that I am not trying to trade anymore. I am just analyzing and finding the entry. Once again, I did. So it's not all bad.

The reason why I wasn't really ready for the entry is the remnant of my prior trader self. I was doing all the right things today, however, and this is just crazy, but not nonsense, I was just as pessimistic of my chances for success as I had become due to my prior trader self's poor trading. So here I was today, being a skilled analyst, but still not believing yet how far I've truly come. I am giving myself time to get it, even tho I really don't have time, I don't have any other choice. I am going to keep analyzing and find the "the" entry and one of these times, I will take it and I will have the right stop and it will work out fine. When doesn't matter any more because I am allowing myself to do it when I feel I'm ready. Maybe just writing this here will speed that up. Maybe it will be tomorrow. Stay tuned.

Another Embarrassing Error

I analyzed, I stalked, I got distracted, I pounced, I was in the simulator. I missed the setup at 2:18pm. There will be another and I will be ready for it.

I Now See a Potential Bull Flag With Support on 15m

With prior post suggesting bullish bias, I am now considering a bull flag situation. I will be looking for strength and pullbacks unless this all changes.

Interesting NYSE TICK Formation With Upside Break Here

Centered over zero and moving average over zero with both extremes coming in and a bit of a break to the upside here at midday.

Wednesday, February 17, 2010

Chart From the NY Traders Expo Tuesday Morning NQ Trade Feb. 16, 2010

It was the only move of the day. They were lucky to see anything. After this, the market was super flat. I didn't trade with them since it was something different from my normal routine. I learned a long time ago not to mess with anything that distracts me. I can't see from my low quality screen captures where the exact entry & exits were but the video will probably be available to view eventually on their website.

Tuesday, February 16, 2010

No Trades but Watched Great Trades Streaming from NY Traders Expo

I was there yesterday, Monday, and it was really great. Found good NY pizza and fresh Bass Ale across the street. I mistakenly walked west to 8th ave from the Marriott and was glad to see the good stuff away from Times Square.

The traders traded the NQ this morning. The video will eventually be available on the Moneyshow website.

Sunday, February 14, 2010

Baby Step Towards Helping Myself With My Risk Aversion That Causes Me to Ruin Good Trades With Wrong Stops

I decided that on the stops that are too wide for me, to take the chance of missing the trade, or waiting for a possible retrace and enter with stop or retrace peak, rather than original.

This doesn't really guarantee anything either, it could still test the original top, but I think it might be a little less likely.

I'll see how it goes and post it, of course.

Saturday, February 13, 2010

When To Break My Rules.

On my Friday, Feb 12, 2010 early trade, I entered a trade based on a signal from the 2m chart. During this trade, I realized that I had a rule to only enter based on 5m signals and I had broken that rule. So As price moved up towards the 5m high of prior bar, where the signal should be, I saw that as potentially resistance. So I decided there to kill the trade since I am really dedicated to only trading the plan. I had problems earlier not trading the plan and being disgusted with myself regarding that, I really wanted to stick with this change. Blogging is a part of this. Here is the link, again, to Dr. Brett Steenbarger's blog regarding disgust: I wasn't thinking clearly enough to realize that if the 5m prior bar hi was broken, then this trade was fine, since I would be in at the right place. I exited on the kill with only 2 ticks gain, but of course, price moved up 10, and then paused and then 10 more points for something like a 20 point gain. Not a total loss, since this confirmed to me once again, that I am able to find a good entry. I wasn't able to move fast enough to re-enter, I also take extensive screen captures to make slides of my trade so I was distracted.

The interesting thing that happened on the same day, was the formation of a setup that I did not enter on the 2m trigger, but waited for the 5m trigger and took it. This time, however, the move from the time of the 2m trigger to the time of the 5m trigger was a really good move and, btw, it would have helped me on my mistake I made in this trade, if I had actually entered on the 2m trigger. So after the trade, I analyzed the charts and realized that there were enough internals at the time of the 2m trigger that were strongly supporting that entry. By the time of the 5m entry, the market AND internals were ripe for a wiggle or minor retracement. What this means, is that the 5m entry, no matter how good it was, had a location of the technical stop that was wider, much wider than the stop location based on the 2m trigger and the 2m was actually better. This leads me to opening up this rule and allowing greater discretion regarding this part of the plan, 2m vs. 5m triggers.

My mistake was using the wrong stop location for the 5m entry. It happened to be the amount that was enough for the 2m stop, interestingly. So I had an arbitrary stop rather than a technical stop and it hit right at the very peak of the minor retracement/hop/dip/pause/wiggle before price followed thru to my intended direction that I had analyzed correctly, and btw, worked for hours waiting for, stalking the market, to snipe it at the best time, which actually was the best time. So that was the one thing I did well, enter. My pattern of errors here is in the management, not entry, so at least I'm improving something.

In conclusion, I now give myself the option of the 2m entry only if it makes technical sense in price pattern and internals.

I'm delaying next post, see link as to why.

Maybe I'll post my final trade from Friday at some point....

Friday, February 12, 2010

Lesson Was Finally Learned By Me & Here Is the Result - I Stayed Out TODAY

I promised I had a lesson coming that shows that I finally followed the lesson that I learned many times before. So I stayed out of this long this time for the right reasons. Yes, it takes me a long time and a lot of repeat lessons before I can change my habitual behavior.

Here is the result, I stayed out of premature long where I would have lost on a stop out, and this also shows me entering long at the right place. ...of course this was all messed up, so learning one thing is nice, I have a lot more to go.

And left is the adjustment I made in interpreting NYSE TICK. I waited for the crossover of the zero line to complete at the lower area of where TICK support theoretically exists.

I'm Not Feeling So Good Now

I was in early once again, on a move, and then exited before I could get any decent gain. OTOH, I am not fudging or messing with the rules and the plan. So in this case extreme discipline got me out (because long signal wasn't on 5m but on 2m) in the long run, this should be a good thing. It just isn't good now as I see over 10 NQ points go without me. That tiny little green line betwen bars was my entry for 2 tick gain :(

Good feeling tho on a decision I made just before this long. I'll work on that post now. Post to follow this one in a minute.

Killed a Good Trade Long NQ 11:38 am Feb. 12, 2010

I think I had a good entry. As it was taking a long time to move, I got scared of the fact that I didn't quite follow my trading plan 100% because I took the signal long off of the 2m chart rather than the 5m chart as my trading plan specifies. So as price started to approach the of the prior 5m bar, the signal, somehow I thought of resistance and I killed it. I wasn't really thinking so well, I was nervous and in my risk-averse state of mind.

So I killed but one tick more was the 5m entry, so I could definitely have stayed in there and now just take a look at your charts, we moved up a lot from here.

Morning Friday Feb. 12, 2010 Range & Support & Resistance Adjacent

Based and moved around a bit, up over base but only to congest some more. Problem is the two areas are right next to each other with out enough room in between to move. It looks like it's going to be a while before price can break either of these areas. Looks like a busy lunch coming, will have to watch if it doesn't move between 11 & 12.

Thursday, February 11, 2010

End of Day Feb. 11, 2010 - Internals Flat No Trades

5m triple top was nice and the retrace up into also very good, but only for a scalp because the internals were flat after the big move earlier. Even as a scalp, however, I don't like having flat internals since they could go either way and influence my position. Too cautious? Not for my current account size.

Maybe I'll start intraday updates. Here's second one for today. Feb. 11, 2010 2:28pm

My thoughts here are that it is looking a little extended, had more follow thru than many days lately, near the high of the day, and I haven't traded yet because I've been busy and also a bit low in account. So for technical and psychological reasons I'm not willing to bet on more follow thru on this extension. However, if internals ALL turn around along with ES, then if I find a 2point stop on a setup, I'll definitely consider it. The moving averages would also have to start to turn also.

What a Beautiful Bull Flag! Feb. 11, 2010 am

As price turned after a great double bottom it consolidated in a bull flag and then all the internals supported an entry after the final reversal at end of flag.

This is one of the most awesome formations with the most awesome follow thru I have ever seen.

It is a thing of beauty.

(I didn't trade this tho, account low and I have to clear snow, and had to eat.)

Wednesday, February 10, 2010

Posts moved from WordPress. Now I update current days and maybe some prior also. Today is Feb. 10 2010, I was stopped out, here's why.

I saw the slowdown of the downward momentum and all those candle's with lower shadows. Then I noticed NYSE TICK was up at prior highs and starting to push them, just as TRIN started to turn for the first time today. I found a small 2m bar that had a good small stop that I needed since my wire to my account didn't come in today. So right off the bat, I was doing something wrong.

My mistake here is that my plan calls for trading the 5m chart. So the stop should really be under the prior 5m bar, not the prior 2m bar. The market and my account and need for a small stop are totally separate things and not related to each other. Where I need the stop and where the stop according to my plan, are thoughts that should never exist together. The only stop is where it should technically be. So guess what happened to my keen analysis of the market action and slick entry? I got stopped out and the analysis proved to be correct because price followed thru to the upside for 16 points. I could have had at least 2, 4, maybe 6 of them before the first pause and base.

Other problem was that I didn't have to take this trade if the 5m stop was too much. See how there is consolidation after the up move and then a breakout of consolidation and a perfect retest of that area. In that dip there is a great trade where TRIN drops some more and NYSE TICK comes down to a support area for a charge back up, all this was perfect alignment for a trade that I could no longer afford. Huge lesson in all of this that I need to internalize now or I won't be trading for much longer.

Here's the ugly details.

I followed the plan and traded it. Set stop loss @ correct technical location, -good thing since it came within 1 TICK of hitting. Feb 5, 2010

They say, "Plan the trade and trade the plan." I finally did that on my second trade. Learning from my loses without getting too messed up, but I let more setups pass after gaining back some loss today because I was burned out. Maybe another day I won't blow a trade like I blew the first one today and then not be stressed and then be able to take part in more trades. Yes, I let the market beat me today. But it started with my own mistake. Then I had to trade to come back. After I did, I was done! So here's trade 2:

I. That tall red bar is showing some exhaustion after the down move this morning, then a double bottom with candle bars with tails at the bottom and the next pivot high was higher than the prior one so the next pivot low after the double bottom was my entry long.
II. NYSE TICK went from a high for a long time was only -200, then TICK actually duplicated the pattern on price helping with confirming what I was seeing
III. TRIN also coming down from a high to a lower high also confirming bullishness
IV. zoomed in on the 2m bars here
V. Took heat there with my stop set at a technically correct one tick under prior bar from entry. Forming a candle bar with a tall topping tail is NOT what I wanted to see forming there as I was long, that was not good!
VI. TradeStation has Matrix and here in the double white box is the red loss indicators each level is one tick and I was down a bit with one tick just prior to this screen cap of the stop loss getting hit.
VII. Shows location of my original target stop to exit with future potential gain over the prior high which I decided to adjust downward in the bracket.
VIII. Here is the downward adjusted target stop which considering the bearishness of the day, and the still sloping downward moving averages, I wasn't very confident of this new uptrend putting in a higher high, so I set this target where resistance would theoretically exist.
IX. I also advanced stop loss to reduce potential for the gain to turn to a total loss, although after being slipped for 2 ticks earlier today, it could still be a loss even with stop loss of break even plus 2 ticks. I call this my bracket squeeze. At one point this stop loss was also only one tick away from hitting.
X. This trade that I had to overcome fear from entering, hit my profit target for two full points. This box is the result of today's trades. The massive error, and the comeback. ($50) is ($55) with fees and $40 is $35 with fees, for a total of ($20) A loss, but an improvement from a loss of ($55) without having attained any substantial experience. What I mean is, trade one was a lesson, but a lesson I've failed to learn many, many times, however, trade 2 was an event that I have very rarely experienced because it is one that I have many times passed up due to my pessimistic influence on this rather discretionary style of trading.

TradeStation sucks, not really but I just want one more feature to save me the extra seconds of critical time. February 5, 2010

This is why I said TradeStation sucks. I just want one more feature to save me the extra seconds of critical time that it takes me to determine the numerical level of the bottom of the bar that triggers my entry and then finding that number on the Matrix. I trade visually with the bars so I really just want to click on the scale and align a line under the bar where I want to short!! So here is the frequent problem I encounter doing that, a damn miss! (TradeStation doesn’t totally suck.)

Do you want to cancel order? Yes because the price has already passed my entry point! Chart: (c)TradeStation

My Mistaken Stop Placement Resulting in Stop Loss Feb. 5, 2010, and TradeStation Sucks (next post)

After yesterday's mistake by not taking a good setup early in the morning session after the open, I decided to not repeat that mistake today. So I took a setup today but made a different mistake, incorrect stop loss placement. It hit, and price continued in the intended direction of my trade. ((I am only able psychologically to post this because I finally traded my plan on the following trade that I am now out of at the time I am posting this one)) Here's the mess:

I. Short entry,II. Cancelled a good short entry, sadly,III. Slippage of 2 ticks,IV. the 100tick chart showing the trade loss, it happened so fast it doesn't even show up on more than one 1min candle bar.Trade Loss Slippage Incorrect Stop Placement (c)TradeStation

Trading Mistakes in Passing on Entry and Scalping the Scraps February 5, 2010

Hesitation is a trading problem and I sure missed a good setup this morning. Then I also passed on the additional setups. Then after the party, I was so distressed, that I regressed to an additional, old common error and settled for low quality scalping and lost.

This lesson is totally psychological; Has nothing to do with technical trading. It is still worthy of posting because after a year and a half of this and hearing other traders' issues, I know I am not alone in this behavior that I need to change. - nqtraderjay

Tuesday, February 9, 2010

Analysis of my trade today, Feb. 3, 2010, and staying out sitting on hands and slippage on stop out.

Divergent markets. NQ started out in an uptrend, ES in a downtrend. I did short NQ at 10:15am but saw quickly that it was highly volatile there and I advanced my stop to break even plus 3 ticks, and it bounced around so much that I even got slipped for a tick and ended up with only a gain of 2, which after fees is $5.00. That was my only trade for the day.

I. Box shows peak near open with highly volatile wide ranging bars and my short

II. Is the Higher high on NQ confirming uptrend at that point

III. Is the Lower High showing potential downtrend in ES

VI. Is the double line where the high of the day was at the time where ES started to form a short term uptrend

V. Is a confirmation of ES uptrend that would make sense to trade NQ long, except for the fact that NQ was at the high of the day at that point and also being around 12:45pm, I was not going to trade during lunch where there is rarely any follow thru, I had enough problems already.

IV. is the confirmation of the higher high on ES turning around the prior downtrend.

VII. Is the zoom in on the tiny trade gain from shorting, this is barely visible so I am showing it on the 100tick chart, NOTE the action all occurring within one minute, and the fast action I took to stop the trade from going negative as it did immediately after my advance of stop loss and getting the slipped fill.

VIII. shows the orders screen from TradeStation and the one tick slippage along with the original stop of 1776.75 that was advanced to 1774.00 as well as the automatic cancellation of the 1771.75 original target. (OCO)

Monday, February 8, 2010

Gain in a Volatile Early Trade Feb 1, 2010

Trade from early am Feb. 1st, 2010. Setup was a dip buy after wide bars on high volatility. Signal I took from 2m chart. I also use 1m to check on internals.

Also including 2m & 5m charts.

NYSE TICK was more bullish than bearish, and it was nearer to the low end of it's range. ADD is the advance-decline line. I don't remember if I adjusted my default stop loss to under current 2m bar, technically, it should be under prior bar's low, but I wasn't mentally prepared for that much risk, so I really shouldn't have traded here. The gain didn't make that error correct. There will be other trades where we will see that I made the exact same error and the result was a loss. (there is one already I have yet to post here) That's the problem with a gain with a trading plan rule break.

Charts (c)TradeStation

What You Will See Here

I know what my trading problems are and I am going to show you them. I am also going to work thru them and show the improvement and results. I am confident that I am going to improve because I am so familiar with both repeating them and trading successfully without them. I am saying that I am in transition from a poor trader to a much improved trader. My plan is to do so here, publicly, in this blog. I think it will be exciting, I am psyched up for it.

Sunday, February 7, 2010

Trade analysis error, led to entry error, led to stop loss, only to be saved by slow market. - Trade EOD Feb. 2, 2010

The NQ market had a low volatile uptrend all day. I didn't trade the even swings midday but I took one at 2:30pm, but what I failed to realize was that the swing I took was really a dip after an exhaustion move.

End of day stop out loss. At (I.) was my original stop loss point. Seeing that it wasn’t going so well, I advanced my stop to just under the current 2m bar (II.) because that’s all I was then willing to give it since it wasn’t acting as I had planned. I didn’t kill it since there was still some potential and I decided to accept the reduced risk. This stop advance was very good since price dropped and I saved a bit. (should have killed it, no reason to waste capital.)

The real issue was that on a 5m chart showing entire day, this move up at 3:10pm was the final exhausting push, the end of the move, so it was a very poor choice to enter on the other side of it with any expectation of a continuation at the dip. No amount of support from NYSE TICK, or TRIN bullishness could help it out here. NYSE TICK actually pulled back after looking like it would continue at my entry as TICK put in a higher low.

Luckily for me the market was easy and forgiving at the end because I was caught long in a mistaken analysis and entry. Do any traders show their trades? Do any traders on line show their failures or stop outs?

Today is Feb. 9, I have a lot of catching up to do.... - NQTraderJay

Saturday, February 6, 2010

First Test Post

Feb 2, 2010 Trade

This trade went well. It was a short. Image shows 2m & 5m charts. The setup was a wide double top on the 5m with each top also having a double top consisting of two bars.

I shorted the second top. Aggressive trade because of the uptrend still present at that time.

Additional components of the setup were the 2m NYSE TICK was downtrending, the purple line overlayed on TICK is the Advance Decline line and it was downtrending also.

Exit reasons were the support area of the 2m base was holding, the bars had bottom tails, three red bars in a row was lowering odds of a fourth and NYSE TICK was at a location from where it bounced earlier.

Chart is from TradesStation platform and the green line between the 2 arrow heads shows that the trade was a gain.