Humbled Trading Log

[humbled 10]

Here are my key levels for Monday

[humbled 10]

This morning I woke up to find price had just tested the Prior Low and had built an executable pattern. I am not sure if I made the right choice but I took this long based on the "R" that it could offer if this low held.

 

I was stopped out for - 4.5

 

Humbled

 

 

PS I think the gap rule omission here might be my judgement error. I am not sure if pre-market is an error as well.

Edited June 24, 2013 by humbled

[thalestrader 14]

This morning I woke up to find price had just tested the Prior Low ...

Humbled

 

Did they open the cash market just for you?

 

Best Wishes,

 

Thales

[thalestrader 14]

http://www.traderslaboratory.com/forums/wyckoff-forum/15535-developing-plan-trading-journal.html

 

It would benefit you greatly to read and put into action the material in the above referenced post.

 

Best Wishes,

 

Thales

[humbled 10]

Did they open the cash market just for you?

 

Best Wishes,

 

Thales

 

 

Thales,

 

 

No they did not. I guess I learned by your response. No Globex trading. I did not impulsively jump at that trade. I thought through the level importance and the pattern made as well as the risk reward the trade offered if only for a retest of that SPX resistance level at 1600.

I am not sure of my limits so I stretched a little and learned something.

 

Building experience but not sure if always the right or wrong way.

 

Humbled

[humbled 10]

http://www.traderslaboratory.com/forums/wyckoff-forum/15535-developing-plan-trading-journal.html

 

It would benefit you greatly to read and put into action the material in the above referenced post.

 

Best Wishes,

 

Thales

 

 

 

Thales,

 

I will review this till I have it down. Thank you again. I am sorry if I frustrated you with that last buy. I normally would have just hidden the error or experience and kept losing in private.

 

I believe I am learning but I guess I needed to see if the stove was hot. :helloooo:

It has nothing to do with the money and everything to do with learning what I should and should not do.

 

 

Thank you for your patience

 

 

Humbled

[humbled 10]

http://www.traderslaboratory.com/forums/wyckoff-forum/15535-developing-plan-trading-journal.html

 

It would benefit you greatly to read and put into action the material in the above referenced post.

 

Best Wishes,

 

Thales

 

Thales,

 

At this stage I am learning from every experience. I am making errors and learning from the skinned knees more than any gain will ever provide. Do you believe I can create a plan from this right now in its current condition? I believe I can formulate some of it from the experience but I also think I have a ways to go.

 

What is your feeling? That post from DB is fantastic and I will work on injecting it into the process. I am trading a single car so the size is small as I learn. I cannot practice in sim because I know my experience with emotion and sim lacks the pressure that cash brings into the thinking.

 

 

 

 

Thanks again and again,

 

Humbled

 

 

PS: I admit I am disappointed in myself but I am not sure how to define the line between "on plan" and "off plan" yet.

Edited June 24, 2013 by humbled

[humbled 10]

I believe based on the teachings so far that even if my key level of 1570 holds, I cannot take this long based on the fact that the gap looks to be in control. I could short a lower high into a key level.

 

 

Humbled

[humbled 10]

Short the 1561.25 ES level based on SPX reaction at key level 1570

 

Humbled and not sure if making errors

[humbled 10]

I covered on a strong reaction to new lows.

 

 

Not feeling good about trading today as I felt I let Thales and myself down for the pre-market trade. In hindsight I see maybe I should have asked first before trying it regardless of the setup.

 

Humbled

[humbled 10]

Gap down and lower makes me question am I supposed to not even touch a long but the signal is here and this is part of the clarity I still lack. I am taking a valid signal I believe.

 

 

Humbled

[humbled 10]

I had a good entry but the move turned in the middle of 2 zones. No trades allowed per instructions unless near a level. I waited for pattern around zone which took me out late. Not sure if I am right or wrong. Nothing concrete yet on all of these management issues.

 

Humbled

[humbled 10]

These are the only areas I can execute at using real time SPX cash hours tomorrow.

 

Humbled

 

 

P.S. Working to write up plan but unclear on many aspects.

[humbled 10]

No shorting due to gap this morning. I do see a pattern but can't use it.

 

Humbled

[thalestrader 14]

No shorting due to gap this morning. I do see a pattern but can't use it.

 

Humbled

 

I'm short - 2B with yesterday's high.

 

You should re-read Trader Vic on gaps as well as what has been said here in your own thread. Gaps are important, and gaps are tradable. However, your decision as to how you trade a particular gap must be based on price action subsequent to the gap, and not the mere fact that the market has gapped open.

 

This is similar to your pre-market trade yesterday. You recognized a pattern and traded it. However, you were missing an important piece - those patterns only matter when they are occuring at a meaningful price level. At this stage, you need the cash market to be your guide, and if it is closed, you have no idea, truly, whether the market is at S or R or somewhere out in the middle of no where.

 

This is where a trading journal with trading plan will be invaluable: It will say things such as "I will trade gaps. If the market gaps open an an important level and reverses (2B) I will fade the gap with a stop above/beloe the high/low of the openig 5/10/15 minute range." Or, "If the market gaps open and establishes a trend in the direction of the gap, I will enter on a pullback, preferably to an S/R level, and look to trade in the direction of the gap."

 

Best Wishes,

 

Thales

[thalestrader 14]

SPX traded to 1577, which was last Friday's low. This is a good place to take some profit if shortand trading a scalable position. I suspect we test some lower levels todaya, but I will nonetheless be watchful for signs that it would be prudent to close all shorts and flip to net long.

 

See you after the close.

 

Best Wishes,

 

Thales

[humbled 10]

2 Signals will post charts later.

 

Humbled

[steve46 12]

So I have a moment here and wanted to mention a couple of things

 

First, no intention of offending anyone, simply want to make the facts known

 

There is nothing wrong with what the original trader is doing. Anytime you trade you have to commit to a specific approach and in that process you make compromises, some of which you are aware of, some you may not be aware of...

 

In this instance the original poster has elected to trade in the context of the 123 pattern.....fair enough....and it is obviously workable...

 

On the other hand in a market dominated by professional interests there are other factors at work and they dictate how the market acts...for example, as we wait for data, markets will sometimes move in a bracketed fashion, and in this model, value is found at the bracket extremes (in this case at the boundaries of the IB)....

 

The attached chart shows our entries today....the left most is the pre-market entry..(we did not take it), the next entry is off the open based on a simple algorithmic pattern that occurs quite frequently, and the last.....a reversal long as participants elect to mark the market up (this is an attempt to "strand" less informed particpants to generate interest and momentum)....

 

In both cases the trader who takes the time to understand what other participants are likely to do, can obtain significant profit (10 points to the down side/equal profit to the upside on the reversal)....

 

This example of a "bracketed market" occurs often enough that I wanted to make it known for future reference

 

Best of luck to everyone

 

Steve

[humbled 10]

Hit resistance 2B top and exited 1586. My execution is slow as I am not sure of my actions and trying to nail them down.

 

Humbled

 

 

PS Will study notes from Thales in a moment.

[humbled 10]

I'm short - 2B with yesterday's high.

 

You should re-read Trader Vic on gaps as well as what has been said here in your own thread. Gaps are important, and gaps are tradable. However, your decision as to how you trade a particular gap must be based on price action subsequent to the gap, and not the mere fact that the market has gapped open.

 

This is similar to your pre-market trade yesterday. You recognized a pattern and traded it. However, you were missing an important piece - those patterns only matter when they are occuring at a meaningful price level. At this stage, you need the cash market to be your guide, and if it is closed, you have no idea, truly, whether the market is at S or R or somewhere out in the middle of no where.

 

This is where a trading journal with trading plan will be invaluable: It will say things such as "I will trade gaps. If the market gaps open an an important level and reverses (2B) I will fade the gap with a stop above/beloe the high/low of the openig 5/10/15 minute range." Or, "If the market gaps open and establishes a trend in the direction of the gap, I will enter on a pullback, preferably to an S/R level, and look to trade in the direction of the gap."

 

Best Wishes,

 

Thales

 

Thales,

 

 

I am working to define rules and understanding. I don't trust my own view to select them because I lack experience so I am taking as much direction as I can from you and updating as I make errors. I am writing rules but these are not clear yet.

 

I thought after a gap I would look for continuation. I waited for price to retest a level 1577 and hold which was a 2b of a gap opening. I was not sure it was still a 2b according to rules so I waited for micro pattern to execute higher on a long. I wanted to short early but I felt I would not be respecting the story the gap was trying to tell me.

 

 

 

Humbled and trying hard.

[humbled 10]

Can I take a short right into the key level? Line at 86.45 with entry trigger at 86.79.

 

 

Not sure

 

Humbled

[humbled 10]

Currently short based on this chart which shows the whole day so far.

 

Humbled

[humbled 10]

Stopped out on the short.

[humbled 10]

I am guessing I can't skip a signal because that would be a rule break so I am short based on this.

[humbled 10]

But in the heat of the moment I am still working out all of the judgements to write the rules from. This chop here is very hard as I am at a level to react to.

 

 

Humbled