Sep 062011

Today was quite tricky.  I got long just after news on the pullback to 48.50 CLVN.  I got a quick 2 pts and was out.  That was my only trade in the US morning. There was a good long setup as ES pulled back to the open but NQ made a lower low so I skipped that one.

Then after dinner I saw ES pull back into a support zone around 57 and I guess I was a bit early as it went against me but I was able to get out on the last move up.  Right idea, wrong timing.  My life’s story! 😉

Overall a good day.  Here are the combined results of yesterday & today:

Yesterday I wrote

My main idea is for ES to return to 1163.50

That happened while during dinner time.  I didn’t expect such a huge drop but that’s holiday trading for you.  Now that we touched 63.50 I’m not sure what will happen next.  If we hold 48.50 then I think we rotate higher.  If 48.50 drops then we head lower.


  6 Responses to “Tricky day”

  1. Did you enter at 57 after the pullback to 51 or did you hold all the way to 51?

  2. I held it through to move to 51. I kept seeing weakness in the selling and I didn’t think it’d go that far. It closed on the high so it’s a real bummer that my idea was right but I was too early.

  3. How do you monitor weakness/strength in selling/buying?

  4. It’s quite complex and for me, still a work in progress. I’m not sure I can describe it really. I look at the volume, the rotations, the micro rotations, tempo, and lots of other things that collectively give me an idea of the strength of each side. I have some proprietary indicators that help to visualize this but I’m weaning myself off of them and learning to see it on the DOM, tape, and footprint.

  5. I find it quite difficult playing pullbacks, while the trade idea is right picking the entry is hard, can get stopped-out twice before taking the right entry (my account size can’t afford holding 4+ points against me).
    Some (like Rob) are “Scaling in” into the position giving them several attempts at catching the pullback.

    Would love to hear you thought about “pullback picking – howto”.


  6. If I have a strong level I will enter full position and give it room and if it fails the strong level then I’m wrong and I’m out. These are the best because I know when I’m wrong.

    Yesterday was not so clear as there were many support levels which could catch it. So I scaled in. It went even farther than I thought so I decided to scratch the trade as it was getting close to the close and anything can happen. Turns out I was right on this one but early with poor cost basis so I was wrong.

    I agree that pullbacks can be hard to get but if you look for pullbacks to good levels it’s a lot easier. Many days I only take 1-2 trades so it’s a question of being patient and waiting for the stars to line up.

    This morning I was more aggressive and took 4 trades and that includes sitting out around the 10am news.

    With current volatility it’s hard for me to have stops that are 2 pts. 3 is ok and sometimes 4 if it’s a busy area. If you can’t take 4 pts against you then you can be in a difficult situation. If you use 2 pt stop and stop out once or twice, are you really better off than using a 4 pt stop? That’s the way I look at it cause every time I stop out and re-enter, it’s often at a worse price. Then commissions too. So I try to trade less and be more patient.

    Everyone has to find what works for them. Sometimes I take a big loss (4-5 pts). As long as it’s infrequent then I can live with it. Also I’m trading with small leverage for my account size. So that plays a major role too.

    I hope that helps. We can discuss via skype or something if you like.

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