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.
Labels: , edit post
0 Responses

Amazon Store