Review of the Way I Trade

Here is a review of the way I trade:




This week I daytraded (papertraded) some parts of Mon, Tues, Fri.  Had other things going on on Wed & Thurs.

Mon = 8.50 pts  ----> 2.25 hrs trading (end of day)
Tues = 20 pts (6 trades) ----> 3.75 hrs of trading (middle of day, end of day)
Fri = 13.75 pts (6 trades) ----> intermittently 6 hrs

Follow Your Trading Plan Reaps Good Results

Today, the market was bullish.  Trading today was relatively easy.  I know some days that is not the case.  Today I was significantly more disciplined that I was yesterday.  Today the things I did right were:

  • Looked at multiple timeframes from 1 min. all the way to the last 90 days.  This gives you a better perspective.
  • I drew lines at major supports & resistances from the different timeframes, starting with the past 5 days, 10 days, etc.  The most significant ones would be the ones that were closest to what the ES is currently trading at, as these would be good pausing points or reversal areas.
  • Putting in lines of support & resistances really played a major role in when I got into and out of trades, as traders went right to those areas.  It makes trading much easier, because my indicators also support what I was seeing on the price chart . . . For example, RSI would be at overbought region as it neared a resistance, and buying volume was weakening.  This would signal for me that it was time to scale out of the trade and to set my stops closer for exit.
  • I waited until all my trading criteria were fulfilled instead of just partially fulfilled.
  • I did not rush into any trade where I could not see my criteria fulfilled.  If it passed by, oh well.  Another trade will come along.
  • Following my trading plan during the times I traded allowed me to take 6 trades with a total of 20 points in 3.75 hrs.  
  • Today I traded from 10:00 am EST to 1:00 pm EST.  Normally I would not trade during lunchtime back east, but somehow today I felt like it as the market looked like it was still moving enough to take trades. I also traded from 3:15 pm EST to 4:00 pm EST.  I saw the movements in the last 15 min., but I didn't feel comfortable getting in as I did yesterday, so I stayed out.  It probably would've given me another 2-3 points, but my gut said to stay out.
  • 15 pts (3 trades) were made in the first round of trading and 5 pts (3 trades) in the 2nd round of trading.
  • I do not feel boastful or prideful, but amazed that following one's good trading plan as one ought to results in good trades, and in today's case, all profitable ones.
  • I will have to do this many times more and do it nonchalantly, as I build up my trading account to trade again.

Awhile

I can't remember the last time I posted to this blog.  Today I got to trade the last 2.25 hrs of the market, the ES.  A friend encouraged me to do so, even though my accounts are technically not allowing me to trade - dipped too low.  I was going to say that it's not over until the fat lady sings.  Well, considering that I'm once again on the weight loss (bodyfat loss) journey and so far fairly successful, the fat lady won't be singing anytime soon hopefully.

Me not being in the market is taking longer than I would like, but all things happen for a reason.  I need to earn my way back to be able to trade the markets.

So, today, following my trading plan, which is now instead of 4 steps, it's comprised of 3 steps.  Love simplification.  Basically I look at volume, RSI, and my chart.  My prices are in candles and I have the 200 EMA on my chart.  That's it.

I don't have a chart to show you today, but I made 5 trades.  4 trades had profits, 1 trade was break even.

Of those 5 trades I took, 3 of them followed my trading plan and 2 only followed 2 of the 3 steps.  It's not like it's a lot of steps to follow, eh?  Though I netted a half point NOT following my trading plan precisely, it's still not good.

Today is just a random day and prior to today, I had no clue what was happening in the market.  My trading plan does apply to all market conditions.  I used the 1 & 5 min. charts today and went along with the trend that was occurring for that shorter time period.

Of course, another thing I did wrong was I did not check to see what the economic indicators were.  That could've been deadly.  Ugggh.  Even if I could trade today, though I took 10.5 pts from the market in 2.5 hrs with 1 contract, I'm not ready.

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