Lusan Journal II

A New day starts...I love trading.

I believe in structure, order, and clarity
so I think that
at the start of this journal
I should share 2 things,
1. my trading rules,
2. my trading strategies.

I am aware that both will evolve as my experience increases.

Here my current trading laws. I found that whenever I broke these laws I ended up paying a price either of cash or trading time.

Be aware that these rules work for me. They might work for other people.

Good luck to all.

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Hi LuSan

I wish you all the best in evoluting your trading system.

Maybe closing the previous journal and opening the journal Mk 2 was not a bad idea. This way you can restart with "relaxed and free mind", as per your rule #3.

I have a question about your rule #9: Never chase price action.

I don't quite understand it. Could you explain it, please?

Thank you

Piksy

But I do not have a system...I trade whatever I see with the little that I understand.

Thanks...a free mind feels good.


Sure.
PA chasing happens when the mindset is grasp by greed. The mind sees that PA is moving in a particular direction, and you then feel that, "hey, it's going north. If I buy now I make a killing."....but there is a problem, there are a bunch of people like us, that fade the market....I mean, If the market is going north, they take the opposite side and trade south...and the chasers are killed.

For example, in the included chart you will see the red area of a big north spikes...you see it and say...let me go long....you do and you then see in dispair PA going south for 60 pips....!...you panick and sell then...then you see in anger PA returning to the north directikon while you are out of the market...

To avoid this problem...first I chose the bias and stick to it until the general market bias changes...so If I say north...I must wait for the market to go south before I enter my long....(This is an idea case)

Trading the news shows many cases of PA chasing killing.

Enjoy

It's much clearer now. Thank you

Just wanted to be in touch and see your progress..


V

Caught in the subnami... as result of being blindside by last 1D black bar...Surrend because I concluded that I would just doing emotional trades from that point on...so OUT.

I would say that this Dance is a very good example of the dangerous of those flips. Why did I do it? Because I forgot and the last 1D bar kept here nice little fingers over my eyes! I think I will demote 1D TF further into the dark!

Commandments violations:
#4 - Trading against 1H
#10 -Inpatient.

So PA punished me....

Tomorrow will be another day.

Observations regarding Dow and $/E correlations

1-Early morning they were in sync.
2.Mid morning they were out of syn.
3. Later one up and the other flat.

What is that saying? No much...I need to gather more data.

Not a good day...
I just surrender...
Mind fixated on last 1D black bar...

I removed 1D from my radar screen as of Now because of her nasty yesterday influence.

My decisions will be made now with:

1H - Dance mode: North or South
15M - TL on last 2 reversals: slope is the bias direction.
5M - Timing entry on relation to the last 15M reversal.

<<<Never trade against that 15M TL slope>>>Not because is not possible -the first confused and fearfull trades in this dance were against that line- but because they are trade of maximum risks.

This will bring me much closer to the now, but not so close to trade just the noise. Also I began using again 15M TL and targeting with S/R. I found amazing that today I only used a scout, no wave attack and I met 50 % of my target. Maybe 3 waves is not a good idea and 2 waves is enough. Is this a 1:1 skew on the making? That is something that I need to think about.

Too many news to allow a normal dance...
This flip was interesting...
why?
I surrender my profits...no much hurt...
I went light...no leveraged because sometimes Pa just returns to the trend...
and the failure of the 15M reversal was a call to attention of a new short term south trend...
tomorrow will be anothe day.

Lusan,
Your Journal helped... i woke up today in mornign at 4.00 , yesterday i did some heavy gym was so feeling sleepy when i woke up in 15 min my mind was becoming cranky ... i had a position open ... saw my mind closed out my position when sqaureed and went to bed...

good to have some guideline... challenge is to discipliny apply it,...

V

A long battle....with both attacks and rescue operations
Mindset is heal now...it feels great.
No trading tomorrow because it is Friday.

When i was doing the 4:00 am, I used to go to bed no later than 10:00 pm...and the first I did was to drink a large glass of water to get the body going...it was pure meditation...the emotions were very calm...It helps to have a plan...have the computer ready and set to go to save time early morning...

Regards,

Hi, Lusan:

For your reference of my G/U trading today.

The exits are not perfect. Well, g/u is too wild I was afraid of her.

Hi, Lusan:

All are 1-1-1-1, no skews.

Hi, Lusan:

Now G/U is 4958. And you can see I should have made 400 pips more if I am more patient. That's why I always said "buy and hold"(ride on) is better stretegy.

No body agree me with this. I feel very lonely.

I am happy with this dance...
Why single waves?...because I was taking profit along the way and I did not have the opportunity to enter with the second wave as this would be not my standard MO.

No bad...whatever works...
Some comments:
1-Entry 1-3-4 are near eachother pricewise...so they are equivalent to a large size order...Risky and you just paid 3 times the spread for a single order.
2. Why risky?
Because PA could have gone South and caught you overexposed...In a congestion, I found, that taking the profit at the range limits helps me managing my exposure.

2- I like entry 2 and 5...2 was a rescue-reaveraging and 5 was is specially nice as it seems that you saw the uptrend and press with the attack but carefully with a single troop.