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.