bearwatch's Blog

Newbie Entry

Hi all,

New to the site, so far I like the site due to the enormous content through the threads. Anyway, I'm starting this journal for others to see as well as for myself (in a way this is therapy and check and balance for myself, thinking this would make me be honest to myself as well as others about my trading experience).

I only trade the e-minis (NQ, ES, YM), moved away from stocks a few months. Too much work and research for someone who only can afford a few hours a day to dedicate oneself to trading.

Hope this journal will help me to a more profitable experience and everyone else. Comments are welcome anytime as this is a learning/therapy process for me.

I use a set of rules I post on my laptop to follow in order to stay disciplined. At the termination of each trade, I would write in the rule(s) I have overlooked or disobeyed in order to identify where my weaknesses lie and work on them.

This are my rules (DYSTRUSTTPHUL):

D -- DOUBLE-TOP/DOUBLE-BOTTOM FORMED?
Y -- BROKE YESTERDAY'S HIGH/LOW?
S -- SET STOP LOSS EXIT?
T -- SET TARGET EXIT?
R -- HAS RISK/REWARD BEEN CALCULATED?
U -- ARE YOU UNEMOTIONAL AT THIS MOMENT?
S -- IS THIS SHORT OR LONG TERM TRADE? WHICH TIMEFRAME?
T -- WHEN IS THE NEXT TIME OF DAY REVERSAL?
T -- TRENDING OR NOT TODAY?
P -- BE PATIENT AND WAIT FOR THE ENTRY!
H -- IS THIS A HIGH PROBABILITY TRADE?
U -- UNBIASED? WITH OR AGAINST THE TREND?
L -- SET LIMIT ORDER ENTRY?

It's too bad I can't attach image files so I and other can visualize the trades. Hopefully this feature will be available. Would make the entries alot faster and easier.

Missed most of the big moves today (busy raising 2 kids on the side), but managed 2 small trades at the end of the day.

POSITIVE, HIGH VOLUME
YM, 1 CONTRACT
SHORT, 5-MIN
ENTRY-- 10075
STOP LOSS --10080
TARGET 10065 (STOP SELL AT 10066)
DOUBLE-TOP FORMING, END OF DAY REVERSAL, 1-MIN HEIKEN ASHI CHARTS SHOW LOWER HIGH
WITH LESS THAN 30 MINUTES LEFT TO TRADE, 2B AND DOUBLE-TOP FORMED. ALTHOUGH REGULAR CHARTS DIDN'T FORM DOUBLE-TOP, HEIKEN CHARTS DID, END OF DAY REVERSAL WAS A DECIDING FACTOR.
DISCIPLINE ERRORS-- WOW, NONE!

POSITIVE, HIGH VOLUME
NQ, 1 CONTRACT
SHORT, 5-MIN
1397
1398.5
1394 (STOP SELL AT 1394)
DOUBLE-TOP FORMING, END OF DAY REVERSAL, 1-MIN HEIKEN ASHI CHARTS SHOW LOWER HIGH, YM AND ES ARE GOING DOWN IN UNISON WITH NQ. CHOSE NQ BECAUSE HAS NOT MAKE IT TO YESTERDAY'S HIGH.
WITH LESS THAN 30 MINUTES LEFT TO TRADE, DOUBLE-TOP FORMED. ALTHOUGH REGULAR CHARTS DIDN'T FORM DOUBLE-TOP, HEIKEN CHARTS DID, END OF DAY REVERSAL WAS A DECIDING FACTOR.
DISCIPLINE ERRORS-- TOOK PROFIT TOO EARLY, PATIENCE! (P).

2 trades
2 wins
0 loss

Missed big move again

Once again, missed another monster move. Oh well, tried 3 trade at the end of day, got whipsawed in a price range. Good thing I speculated with tight stop losses.

POSITIVE, HIGH VOLUME
NQ, 1 CONTRACT
LONG, 5-MIN
1414.5
1417
1413 (STOPPED OUT)
SAW PULLBACK FROM NEW HIGH, 1-MIN HEIKEN CHART DIDN'T CONFIRM. ES AND YM MADE NEW HIGHS. TOOK A CHANCE.
STOPPED OUT, IN TIGHT PRICE RANGE, WHIPSAWED.
DISCIPLINE ERRORS-- NOT A HIGH PROBABILITY TRADE (H), RISK/REWARD WASN'T GOOD (R).


POSITIVE, HIGH VOLUME
NQ, 1 CONTRACT
SHORT, 5-MIN
1413
1411
1414.5 (STOPPED OUT)
SEEMED LIKE DOUBLE-TOP ON 1-MIN CHART, 5-MIN STILL INTACT. TRYING OPPOSITE DIRECTION.
STOPPED OUT, IN TIGHT PRICE RANGE, WHIPSAWED. IN PRICE RANGE, BUY LOW-SELL HIGH. BUY HIGH, SELL HIGHER DIDN'T WORK.
DISCIPLINE ERRORS-- NOT A HIGH PROBABILITY TRADE (H), RISK/REWARD WASN'T GOOD (R).


POSITIVE, HIGH VOLUME
NQ, 1 CONTRACT
SHORT, 5-MIN
1413.5
1411
1414.5 (STOPPED OUT)
TRYING AGAIN.
STOPPED OUT, IN TIGHT PRICE RANGE, WHIPSAWED AGAIN NOT MOVING ANYWHERE. SHOULD HAVE TRIED YM OR ES.
DISCIPLINE ERRORS-- GETTING EMOTIONAL (FRUSTATED) DUE TO 2 PREVIOUS LOSERS (U).

3 trades
0 wins
3 losses

Will try again tomorrow.