Some Learnings During The Market

Daily I'm committed to trading my trading strategies. Today is no exception. Each day, I've been missing the moves in the first hour of trading. Though I do desire to trade this hour, it is the hour I spend with my kids in our morning family devotional times, finishing up on breakfast and taking them to school. I do not have time to really watch the market, and thus, this would not be good as it seems that the market moves during these periods.

Today, I watched a number of things happen as my body was exhausted from all the coughing I'd been doing now for a few hours. My chest hurts, but I am following my plan. Honestly, this would be easiest for me to make a video and post, but it really is a pain in the butt to have the video render and wait for that. I do not want to take up resources on my computer as I trade.

As I enter trades, if the price action continues to move up, but RSI is in overbought territory (>70), I use caution, especially if I'm near a pivot point. A good example is todays high was 1135 as of the writing of this at 12:29 pm EST. The market has now hit this area 4 times on the 3 min. chart. RSI is 81.77. Do I get into a bullish position? NOPE. Could the market continue to move way up in this overbought territory? Of course.

However, I'm not looking to get whipsawed. That's happened to me far too many times, and that is not following my trading strategy. The volume, MACD criteria are met, but seeing that I'm at a pivot point and RSI is in overbought and it's been a bit since the RSI downtrend was broken, it would not be a wise move here. What if I miss out on some good money? So what? There is plenty of money to take when the odds are more stacked in your favor.

I'm finding some periods it is a challenge to wait for all my trading strategy criteria to be met -- there are 4 main things. But, it will give me the greatest success, rather than trade willy nilly as I have from mid-Aug to end of Dec. A part of good trading is consistency and not consistency in doing whatever the heck you feel like it but showing discipline in your trading.

Something else I learned today was though I got into my trade using my strategy, as I waited to get out using my strategy, the position turned against me. I did end up taking a small cost and got out as per my strategy. There was a few points where I kept thinking, "Maybe I should get out now and take the 3 tick profit, but I waited for my strategy to tell me when to get it. My cost was a 1 tick plus commissions cost.

Thankfully I got out as per my strategy, because at this writing (still during trading hours), it's now more than 8 ticks against me. So far, 5 out of 6 trades are profitable this year. Granted, I wasn't completely following the strategies to the "T" on all 6 trades, rather 3. So, if we're to be honest, that's so far a 67% of my trades are profitable.

This cough is really tiresome. Going to go lay down for a little bit and see if it calms down some.


Okay, back. While I'm lying down, no sinus drainage, so very little coughing. I'm only coughing when my torso is erect. Can't trade lying down. It's now 12:45 pm MST (2:45 pm EST).

I've now made 4 trades today: 2 costs, 2 profits.

From 9 trades this year, 7 are profitable. That's 78% of my trades so far profitable. Yes, the data is a bit skewed as the exits of my profits were not done per the trading strategy. I didn't want to incur 2 more costs, so I quickly took profits.

At 12:32 pm MST, I was in @ 1136.25. Perfect. Unfortunately, I was fearful from my first 2 costing trades and set it at 1 tick as it stayed there for a few minutes.

Anyway, I was in trades for 4 breakouts at the right time. Unfortunately, I set my stops way too close. However, in the other 3 trades, they were not breakouts and 2 ending in costs. One of the profitable trades were not breakouts and where I got out was exactly where I needed to to make a profit.

So, there is a fine balance here that is needed.
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