8/4/07 General Trade Log / Idea Sharing

[AbeSmith 10]

Hello. I hope you had a good weekend. Good luck.

[Soultrader 12]

Just so you guys know... Nikkei gapped lower only to rally today. Seeing some strength in the Asian markets today. The markets here didnt take the US market decline on Friday negatively. Correlation gets a little distorted over the weekends but traders might be feeling a little optimisitc because of the Asian markets. Will be interesting to see what happens.

[AbeSmith 10]

Trade 1: -13.

[AbeSmith 10]

Trade 2: -23.

[AbeSmith 10]

Here is the chart for trade 2:

[AbeSmith 10]

Trade 3: -16.

[AbeSmith 10]

Trade 4: +19.

[AbeSmith 10]

Trade 5: +4.

[AbeSmith 10]

Trade 6: +2.

[AbeSmith 10]

Trading summary for today:

 

6 roundtrips. -27 points. -155.56 realized loss.

 

Trade 2 was poorly planned and was my biggest losing trade today, -23. Trae 3 was also a poor trade, -16. 16 point stop was too wide. Did not get out with profit ahead of target and did not reposition stop to even out.

[Soultrader 12]

Just so you guys know... Nikkei gapped lower only to rally today. Seeing some strength in the Asian markets today. The markets here didnt take the US market decline on Friday negatively. Correlation gets a little distorted over the weekends but traders might be feeling a little optimisitc because of the Asian markets. Will be interesting to see what happens.

 

Sorry to quote myself... but looks like the markets rallied?

[notouch 10]

Just a little...

 

:rofl:

[Guest cooter]

8/4/07?

 

:lol:

[AbeSmith 10]

8/4/07?

 

:lol:

 

Sorry about that. Would have changed it but don't have the ability to edit, I don't think.

[brownsfan019 17]

Abe,

One observation if I may - today's charts are the 5 min YM chart. I believe we've also seen a 1 minute chart.

 

My suggestion is this - focus on one timeframe for now. I know others will say that having multiple timeframes is good, and while that may be true LATER, I think for now picking one and focusing on that is a good idea. I think there's a big difference between the 1 min and 5 min chart. And I mean HUGE. The reason I suggest this is that you need to start developing a rhythm or feel for the market and jumping different chart timeframes is going to make that harder.

 

Now, one bridge that could help is the volume based chart as I mentioned before. Have you taken a look at one in real-time? Here's why I think it would be wise to at least look at one in real-time - part of the problem with the 5 minute chart in this environment is the volatility. I think that the 5 is going to get you into moves WAY too late (currently). The 1 or 3 minute would be a better idea if you find yourself saying - Good idea, just too late to the party. Now the VBC will take that and provide a visual for you in real-time. I can't stress enough how important it is to watch a VBC in real-time. You'll see what I mean... when action is taking place (and presumably when you WANT to be in) you'll see candles print like crazy. This of course requires discipline and focus. Also, when candles are taking longer to print, you'll know that the volume is slower and either you can pass on those trades or lighten the load perhaps. The VBC can provide quite a few more trades depending on how you are trading.

 

I attached a small snipit from today's ES 5000 VBC. I believe at one point you were looking for 2 bullish candles (blue on my chart) to consider a long. Well, take a look at 11:40am or so. There was a 10 pt move approx with NO red candles at all. NOW, I AM NO WAY CONDONING THIS AS A TRADING PLAN, THIS WAS PURELY FOR ILLUSTRATIVE PURPOSES.

 

Look at that VBC chart. Note that there is less than 1 hour of data there and how many candles are present as well... Again, you gotta pay attention with VBC's, that is the one major 'catch' if you will.

 

[AbeSmith 10]

Abe,

One observation if I may - today's charts are the 5 min YM chart. I believe we've also seen a 1 minute chart.

 

My suggestion is this - focus on one timeframe for now. I know others will say that having multiple timeframes is good, and while that may be true LATER, I think for now picking one and focusing on that is a good idea. I think there's a big difference between the 1 min and 5 min chart. And I mean HUGE. The reason I suggest this is that you need to start developing a rhythm or feel for the market and jumping different chart timeframes is going to make that harder.

 

Now, one bridge that could help is the volume based chart as I mentioned before. Have you taken a look at one in real-time? Here's why I think it would be wise to at least look at one in real-time - part of the problem with the 5 minute chart in this environment is the volatility. I think that the 5 is going to get you into moves WAY too late (currently). The 1 or 3 minute would be a better idea if you find yourself saying - Good idea, just too late to the party. Now the VBC will take that and provide a visual for you in real-time. I can't stress enough how important it is to watch a VBC in real-time. You'll see what I mean... when action is taking place (and presumably when you WANT to be in) you'll see candles print like crazy. This of course requires discipline and focus. Also, when candles are taking longer to print, you'll know that the volume is slower and either you can pass on those trades or lighten the load perhaps. The VBC can provide quite a few more trades depending on how you are trading.

 

I attached a small snipit from today's ES 5000 VBC. I believe at one point you were looking for 2 bullish candles (blue on my chart) to consider a long. Well, take a look at 11:40am or so. There was a 10 pt move approx with NO red candles at all. NOW, I AM NO WAY CONDONING THIS AS A TRADING PLAN, THIS WAS PURELY FOR ILLUSTRATIVE PURPOSES.

 

Look at that VBC chart. Note that there is less than 1 hour of data there and how many candles are present as well... Again, you gotta pay attention with VBC's, that is the one major 'catch' if you will.

 

 

Thanks Brownsfan. I will look at the VBC today. I've noticed that my trading plan does not include buying the trend, and so I've been missing a lot of solid moves in one direction or another. I think the VBC will help me trade those better.

[TinGull 10]

Also, you say you'll "look" at them today. Don't trade the VBC's today if you're going to watch them. Just do that...watch and learn. I know first hand the power of "new fancy things" and always wanting to find out what can work better and faster and more effectively. I wouldn't just watch the new thing, I'd trade it immediately. Not a good idea. Search for something that works for you and when you've found something you like, stick with it. Let probabilities play out and don't search anymore. During your search, though...just watch and take notes. If VBC's "sing" to you, then start paper trading a strategy on it. Don't paper trade VBC's right away, because you could start to do more harm than good to your subconscious mind by developing bad habits immediately.

 

Just my 2 cents....ya know, why does it have to be 2 cents? Why not 5, or a dollar even?