Sep 012011

Had a great day today and all the work I spent revising my trading plan while laying at the beach seems to be paying off.

My first trade after the open was a long (Trade 4) based on a break out of the open swing to the upside.  I scratched it due to the news and my poor entry.  I had a wide stop on this one cause I was in with half position.

Pre-market I tweeted my plan of getting long at 21 which I did for trade 5.  Unfortunately it went against me which made me uncomfortable and then I got a sell signal so I bailed for 1.75 pts.  This ended up being early and I need to be more patient at least with the 2nd half.

Trade 6 was a short.  I hadn’t planned on trading short today but the enormous selling tail told me it was more likely to retest the low than the high so I increased my size by 50% – this is allowed as I want my best setups to be with 3 contracts.  I got 2 scales and Ninja said I had 10 pts banked.  I stopped out at my entry on the third and then Ninja said I only had 9.25 pts.  I have noticed this lately and I’m not sure why it calculates incorrectly, I have it set for FIFO.  When it went only a tick or two above the previous swing I re-entered short for 1 pt to make 10.  It was almost 6pm (noon in NY) when I normally stop so I was happy to get 1 pt and get my 10.  I admit that last trade was purely for “P/L” but I really love getting 10 pts in a day.

After I was out the market went up and tested 1220 again (remember the 1221 level I tweeted pre-market?  That area was key today) and then it sold off while I was having dinner.

As I write this, 1 hour before close, value is lower today (treating the lower distribution as a second day/session) however it’s only slightly lower.  Tomorrow is a Friday before a holiday weekend.  I’ve noticed those can be bullish.  So, depending on the Asian session, I plan to trade with the day trend tomorrow.  I guess I consider the VA trend to be neutral to slightly bearish.

I think one doesn’t have to have a bias, and for some it can hinder them, but for me I think making as many decisions pre-market makes things much easier during the session.  I’m willing to sacrifice a few opportunities in exchange for this simplification.  This is one of the things I worked on during my vacation.

As for areas of improvement:

  • I’m still early on entries and usually it’s cause I “jump the gun” instead of waiting for all of my criteria.  This is a major area of improvement because being early means bigger stop and less profit.  I realize that my desire to have smaller stops is most dependent on getting good timing on entries.  It’s impossible to have a tight stop when entering early all the time.  In fact it’s better to enter late.
  • I missed two big trades today, both of which went over 10 pts.  That would make a huge difference in my P/L.

I will try to tweet my initial plan before each session and I welcome feedback & questions.  I’d really like to make this more interactive, but I’m not yet ready to host a trading room.  Some day if my results are better I would like to try it.  But one thing at a time.


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