ES is in a range today, so just practicing looking for the next move.
Today was a good $ result an absolute sh!te show of a trading day by me.
Sometimes I wonder what it is I am trying to achieve when trading like an idiot.
The plan is to follow the day's trend. To trade below a certain predefined level or above it. To stay on the correct side of VWAP.
For some reason, my first trade was against all of my trading plan. Then when I unsurprisingly lost the 2nd trade it all just went to crap.
Luckily the losses were small enough and luckily the runner actually came and paid for everything. Which was always the goal.
I could have just made my life a lot easier by following my trade plan.
Sometimes I wonder what it is I am trying to achieve when trading like an idiot.
The plan is to follow the day's trend. To trade below a certain predefined level or above it. To stay on the correct side of VWAP.
For some reason, my first trade was against all of my trading plan. Then when I unsurprisingly lost the 2nd trade it all just went to crap.
Luckily the losses were small enough and luckily the runner actually came and paid for everything. Which was always the goal.
I could have just made my life a lot easier by following my trade plan.
Stopped trading for the day.
Today was about taking small losses. Letting a winner run towards a logical level. The difference between today and yesterday was, I didn't hold and hold for the level I think the market will reach. IMHO the ES goes to 2820 today. Instead, after a good move down, I started to trail the SL by the smaller time frame swings.
I noticed yesterday that if I had taken all the profits from the majority of the moves I would have made as much as if the price had gone in a straight line to my idea of a TP level. My risk would have been mitigated with the smaller time frame so I wouldn't have given much back each time. I could have met my daily target and walked away a happy trader and just left the TP on for a What If scenario without worrying about the big correction that ensued.
So my tip for the day is 1) follow the higher time frame trend. 2) take profits, your account balance will thank you 3) re-enter in the same direction on a solid setup. 4) if you have made great gains, wherever you would have moved your SL to, maybe wait and see if you can add another position. You could build a decent position that way. But for most, building an account with small steps is the way forward. We can leverage up a little when we have the bigger account.
Tomorrows plan
Wait for the price to visit a red/green box or a blue solid line
Today was about taking small losses. Letting a winner run towards a logical level. The difference between today and yesterday was, I didn't hold and hold for the level I think the market will reach. IMHO the ES goes to 2820 today. Instead, after a good move down, I started to trail the SL by the smaller time frame swings.
I noticed yesterday that if I had taken all the profits from the majority of the moves I would have made as much as if the price had gone in a straight line to my idea of a TP level. My risk would have been mitigated with the smaller time frame so I wouldn't have given much back each time. I could have met my daily target and walked away a happy trader and just left the TP on for a What If scenario without worrying about the big correction that ensued.
So my tip for the day is 1) follow the higher time frame trend. 2) take profits, your account balance will thank you 3) re-enter in the same direction on a solid setup. 4) if you have made great gains, wherever you would have moved your SL to, maybe wait and see if you can add another position. You could build a decent position that way. But for most, building an account with small steps is the way forward. We can leverage up a little when we have the bigger account.
Tomorrows plan
Wait for the price to visit a red/green box or a blue solid line
First of all, thanks for voting - when we get to 10 votes, i'll have a better understanding of what views of this trading diary actually find interesting.
Today's trading is over and done with. 11:43am to 12:06pm (you can do the math) but the results for trading that short period of time versus how many minutes it would take to earn the money at a 9-5 job are staggering and highlight 1. what is achievable and 2. why we all get into trading in the first place.
Because the wins are so large compared to working for someone else the stress of losing that money is super ramped up. To help with keeping focus and to keeping Calm is to keep it simple.
I took 2 trades today - essentially the same trade but I got stopped out before re-entering.
There is no magic source - just keep the risk low and go with the higher timeframe direction.
don't be greedy and take the money - go and do something nice with your friends or family either in the real world or virtually. F$cK COVID-19
Today's trading is over and done with. 11:43am to 12:06pm (you can do the math) but the results for trading that short period of time versus how many minutes it would take to earn the money at a 9-5 job are staggering and highlight 1. what is achievable and 2. why we all get into trading in the first place.
Because the wins are so large compared to working for someone else the stress of losing that money is super ramped up. To help with keeping focus and to keeping Calm is to keep it simple.
I took 2 trades today - essentially the same trade but I got stopped out before re-entering.
There is no magic source - just keep the risk low and go with the higher timeframe direction.
don't be greedy and take the money - go and do something nice with your friends or family either in the real world or virtually. F$cK COVID-19
Attached is an annotated chart:
The Green and Red lines are basically Donchian channels and only for illustration purposes, they are the easiest ways to show higher highs and higher lows.
If you put a smaller Donchain channel overlayed too - it makes for a good trailing stop.
The Moving averages are not magical, they just signify a trend and also some dynamic support in a bull move, so when the price pulls back into them and then moves away, it's a good visual for Buy the Dip.
I have learned to have a target, but to take profits at any opportunity as price doesn't go up to the target in a straight line and I have given back more by holding on for a target than I have made when the moves have gone straight to my target. Normally if that happens, the target is too small.
The Green and Red lines are basically Donchian channels and only for illustration purposes, they are the easiest ways to show higher highs and higher lows.
If you put a smaller Donchain channel overlayed too - it makes for a good trailing stop.
The Moving averages are not magical, they just signify a trend and also some dynamic support in a bull move, so when the price pulls back into them and then moves away, it's a good visual for Buy the Dip.
I have learned to have a target, but to take profits at any opportunity as price doesn't go up to the target in a straight line and I have given back more by holding on for a target than I have made when the moves have gone straight to my target. Normally if that happens, the target is too small.
Identifying a trend is quite easy,
Higher Highs + Higher Lows is Bullish.
A lot of people will trade the breakout (momentum trade), or fade the breakout back to the mean (reversion trade). A trend trader will attempt to join an established trend and in this case Buy the Dip... Some traders probably try and capture all 3 moves
I like to pick a trade with confluence. The attached shows that we're in an established trend higher, we broke higher and then pulled back into the Moving Averages, which basically coincided with the breakout level. A bullish close higher than the MA's signalled to me a probability that we were to resume the trend higher.
Higher Highs + Higher Lows is Bullish.
A lot of people will trade the breakout (momentum trade), or fade the breakout back to the mean (reversion trade). A trend trader will attempt to join an established trend and in this case Buy the Dip... Some traders probably try and capture all 3 moves
I like to pick a trade with confluence. The attached shows that we're in an established trend higher, we broke higher and then pulled back into the Moving Averages, which basically coincided with the breakout level. A bullish close higher than the MA's signalled to me a probability that we were to resume the trend higher.
If you trade breakouts, you want to see an increase in Volume as confirmation.
Also, it is a good idea to have an identified range that you are breaking out from.
In this instance, the price was trapped between the VPOC (Blue) from yesterday and the low Vol range price (Green) and also the High of today's Initial Balance (Black)
2950 was the target, i also trailed the Stop just in case it punches through that level up to 2980
Also, it is a good idea to have an identified range that you are breaking out from.
In this instance, the price was trapped between the VPOC (Blue) from yesterday and the low Vol range price (Green) and also the High of today's Initial Balance (Black)
2950 was the target, i also trailed the Stop just in case it punches through that level up to 2980
Putting it al together today,
Trend = is the channel moving lower or higher, or maybe expanding in both directions?
Trend = is the fast moving average below or above the slow moving average?
Momentum = has price recently made a new low/high?
Momentum = has price recently pulled into the MA's?
Trigger Short = Trend/Down Momentum/Down Sell low of the previous bar
Trigger Long - Trend/Up Momentum/Up Buy High of the previous bar
Going Long after a retest of the '80 level, first target Initial Balance Low, 2nd Target 3000
Trend = is the channel moving lower or higher, or maybe expanding in both directions?
Trend = is the fast moving average below or above the slow moving average?
Momentum = has price recently made a new low/high?
Momentum = has price recently pulled into the MA's?
Trigger Short = Trend/Down Momentum/Down Sell low of the previous bar
Trigger Long - Trend/Up Momentum/Up Buy High of the previous bar
Going Long after a retest of the '80 level, first target Initial Balance Low, 2nd Target 3000
Probably left a load on the table but my idea is to do one trade a day from now on.
This one netted
Was looking at how much a delivery drive can earn in a day. 8 hours a day at £8.75 per hour, = £70
This is $287 which is the equivalent of £232 which could have been earned by anyone in 43 minutes.
Weird how the world is...
This one netted
Was looking at how much a delivery drive can earn in a day. 8 hours a day at £8.75 per hour, = £70
This is $287 which is the equivalent of £232 which could have been earned by anyone in 43 minutes.
Weird how the world is...
ES made me sweat today - I picked my range and had a plan.
FoShoBro (Fake Out, Shake Out, Break Out) - unfortunately, I picked the smaller range and wasn't planning on the larger one being tested.
That became the case, as I traded into the news (2nd mistake), was being cocky, and in reality, I could have traded the smaller range on a 500 tick chart but as I was on the 1 minute I decided to hold to see what the market did at the top of the larger range (Big Grey Box). In hindsight, the close back inside that range would have been the best, risk (almost) free trade I could have done today. One to remember for next time.
I was going to hold for my target of 3000 but as price stopped and looked likely to reverse at x1.5 range, having been in the trade for a while and as 4pm BST approached I decided it was just better to not be greedy and take the money. If I am going to risk $500 I need to hold for $1000 and one day I will. However, I am supposed to be reducing my risk and accepting smaller gains too, so $500 is a good day. Or in my money £475.41
A registered nurse can get £18 per hour. It would have taken them 26.5 hours to make what I just did in 1 hour 13 minutes. We need to pay nurses more.
FoShoBro (Fake Out, Shake Out, Break Out) - unfortunately, I picked the smaller range and wasn't planning on the larger one being tested.
That became the case, as I traded into the news (2nd mistake), was being cocky, and in reality, I could have traded the smaller range on a 500 tick chart but as I was on the 1 minute I decided to hold to see what the market did at the top of the larger range (Big Grey Box). In hindsight, the close back inside that range would have been the best, risk (almost) free trade I could have done today. One to remember for next time.
I was going to hold for my target of 3000 but as price stopped and looked likely to reverse at x1.5 range, having been in the trade for a while and as 4pm BST approached I decided it was just better to not be greedy and take the money. If I am going to risk $500 I need to hold for $1000 and one day I will. However, I am supposed to be reducing my risk and accepting smaller gains too, so $500 is a good day. Or in my money £475.41
A registered nurse can get £18 per hour. It would have taken them 26.5 hours to make what I just did in 1 hour 13 minutes. We need to pay nurses more.