ES Trading Journal

[new_trader]

Importance Of Keeping Tight Stops

Today WAS profitable thanks to tight stops and sticking to them.

1)
sell 1@825.25
buy 1@826.50
----------------
(1.25)

2)
sell 1@826.25
buy 1@825.25
----------------
1.00

3)
buy 1@825.00
sell 1@823.75
----------------
(1.25)

4)
buy 1@823.75
sell 1@826.50
----------------
2.75

 

[foredog]

quick question N_T, who do you trade the S&P with?

 

[new_trader]

quick question N_T, who do you trade the S&P with?

Online Futures Trading - Open E Cry ™ a Direct Access Trading System

 

[foredog]

Cheers mate, just wondered because looking at IG, the spread for the S&P is 0.75!! but the dow is only 4pts or effectively 0.4 on the S&P for two markets that are broadly the same.

Just where you were getting stopped a lot, i thought maybe it was that killer spread.

Thankfully it's not, keep it up.

 

[new_trader]

03-02-2009

A busy day, but many valuable lessons learned. I should never have taken trade 1, which also cost me in slippage. I got my 'rhythm' by the end of the day.

1)
Buy 1@823.50
Sell 1@821.50
------------
(2.00)

2)
Buy 1@823.25
Sell 1@824.00
------------
0.75

3)
Sell 1@826.00
Buy 1@827.25
------------
(1.25)

4)
Sell 1@828.50
Buy 1@829.75
------------
(1.25)

5)
Sell 1@829.50
Buy 1@827.00
------------
2.50

6)
Sell 1@831.50
Buy 1@830.75
------------
0.75

7)
Sell 1@833.25
Buy 1@832.00
------------
1.25


Net: 0.75

 

[new_trader]

04/02/2009 Buy 1@ 830.00
04/02/2009 Sell 1@ 828.75
-------------------------
(1.25)

04/02/2009 Buy 1@ 830.25
04/02/2009 Sell 1@ 828.75
-------------------------
(1.50)

04/02/2009 Sell 1@ 829.25
04/02/2009 Buy 1@ 830.50
-------------------------
(1.25)


05/02/2009 Buy 1@ 844.00
05/02/2009 Sell 1@ 844.75
-------------------------
0.75

06/02/2009 Sell 1@ 864.75
06/02/2009 Buy 1@ 866.25
-------------------------
(1.50)

06/02/2009 Sell 1@ 866.00
06/02/2009 Buy 1@ 865.25
-------------------------
0.75

 

[new_trader]

09-02-2009

After a weekend of intense study and practice I think I am slowly eliminating the fear and hesitation. The market came nowhere near my stop. I need to work on my resolve to hold trades longer and get more points! I trail my STOPS too quickly. 1st trade was perfect and would have netted more profit.

1)
sell 1@865.50
buy 1@865.50
----------------
0.00

2)
sell 1@865.00
buy 1@864.00
----------------
1.00

 

[JRP2891]

Changing your mindset from one of protecting and not wanting to lose profit, to one of hoping what could be made on a move, in my opinion, is one of the most important mental changes a trader can undergo.

 

[new_trader]

Changing your mindset from one of protecting and not wanting to lose profit, to one of hoping what could be made on a move, in my opinion, is one of the most important mental changes a trader can undergo.

Agreed, although 'hoping' wouldn't be my word of choice, it takes confidence in yourself and in your judgement to do this. I was beginning to lose confidence in my judgement and hence closing trades early to secure mental relief. A weekend of study and practice has proved invaluable. I will not allow complacency to set in once again and will continue the regime.

 

[new_trader]

10-02-2009

This trade was made through my S/B platform which I normally use when putting my figuring to the test. I made the trade based on the methodology and indications I get through my DMA account. You will notice a larger STOP which I always use when S/B to account for the larger spread and lack of transparency, but I stay poised to close the trade from indications I get from DMA. You will notice the position never moved against me by more than 1 point.

1)
buy 1@855.63
sell 1@860.63
----------------
5.00

 

[JRP2891]

Nicely done. What made you hold this trade longer than your previous ones?

 

[new_trader]

Nicely done. What made you hold this trade longer than your previous ones?

Thanks. A very good question with a two part answer:

1) All the hours of Study and Practice over the weekend gave me the confidence that my figuring was right.

2) At only £10/point it is much easier to have the courage and resolve to hold a trade longer.

 

[JRP2891]

Do you think it might be worth decreasing your size until you're consistently running your winners longer?

 

[new_trader]

Do you think it might be worth decreasing your size until you're consistently running your winners longer?

No. If it was that simple I may as well just continue paper trading and not risk any money at all. The solution isn't to avoid the issue, it is to tackle it.

 

[JRP2891]

Not running your winners can often be attributed to trading too large a size in my experience. Surely it is better to get in the habit of running winners and then build your size up from there? You wouldn't be avoiding the issue by doing this, many good traders do the exact same thing. It's psychologically easier doing it this way and you can see how you want to trade in future.

 

[new_trader]

Not running your winners can often be attributed to trading too large a size in my experience. Surely it is better to get in the habit of running winners and then build your size up from there? You wouldn't be avoiding the issue by doing this, many good traders do the exact same thing. It's psychologically easier doing it this way and you can see how you want to trade in future.

I might have to consider that until I build up more capital in my DMA account as I know that is also a major factor.

 

[JRP2891]

Give it a go with smaller size and see how you get on. I find if i trade a size that's too large for me at that time, i only end up reinforcing bad habits/behaviour in my trading, and even if i make money from doing so, it's not good for my trading in the long run.

 

[new_trader]

Paper Trade 10-02-2009

Paper Trade:

sell 1@864.75
buy 1@861.50
----------------
3.25

How much easier it is to do when you are free from the strain of a financial commitment! 😉

 

[JRP2891]

Always the way.

 

[new_trader]

If I were to trade again then according to my figuring I'd be looking to go long for a breakout into the high 860's - low 870's. However, things can develop and change, and as always, do your own research!