After my previous journal and some recent reflections my goal now it to trade for a small, consistent, income.
The old journal is here -
But the key points, and new thoughts, are listed below
After reflection on my journal and my impulsive nature I realised I love order flow, tape reading and DOM. Impulse and going with the flow is a match for me
The Dax futures are my chosen market. It has a lot of movement and it suits my job hours (Dax opens when I get home after work)
I trade by reading the flow and link in with two friends who execute the trades. We talk over MSN. They execute and keep a track of progress and I keep my head in the game.
My goal trading the Dax was to change a small loss to a small profit. I believe that has been achieved as per my previous journal. The conditions I was able to do this were: 5 point targets, 5 good trades, minimise losses. Forget about the big home run goals.
My goal now is to try and obtain a small income from the FDAX by trading up a profit of 25 points a day.
I know that I will need to continues learning by observation and reflections and reading
Tools I will use DOM, Time and Sales, Announcement times, Point and figure charts, One daily Chart, Volume, Volume profile
Pre-market report using volume profile and the charts. Announcement times noted
Trading mainly using Time and Sales and DOM with some reference to a short time frame point and figure chart
5 profitable trades of 5 points over a two hour trades is achievable when the conditions are right
Most of the game is about minimising losses so being patient for good setups and being quick to take a small loss if conditions change will be crucial. Catching lots of small fish (trades) = an income. If the trades are a high probability of success and losses minimised
If the tape speed is too fast or too slow I need to stay out of the market. It needs to be just right
This journal will be used for reflections on observations and trading progress
I will not use higher timeframe charts to make entry or exit decisions. They can add conflicting information and confuse my decisions. I will use them for the pre-market report.
I have at times let a probability become an expectation in my mind. That causes me to trade poorly so I will trade the DOM and time and sales because it is pure, immediate information to act on
In my previous journal I discovered pattern I had - ...trade well for a few nights...confidence...im right and my pre market analysis is correct - BIAS created and eventual trading against the market data.... 5 profitable trades of 5 points and im out for the night.
Profits can be made consistently but small goals and ignoring the potential of big moves (at this stage) is the way forward. Its hard to get past a potential big move (GREED) and think small
For me too many charts and too much information is a problem. New, indicators, time frames - I need care with what is important and its a challenge to filter out what ISNT necessary. Too much information - bad decisions or paralysis.
Stop Loss after entry a trade can move in the anticipated direction and hit the target or stop or hover in BE loss. The behaviour of the trade after entry will determine when its time to get out. I wont wait for a hard stop if its looking weak. Better to have a BE trade than hit a hard stop. I can always re-enter
For me the journal process is a tool that helps reveal patterns and issues that otherwise would not be identified. Whets the saying - if we don't learn from the past it repeats itself....
It helps to identify small goals to work on (baby steps)
It helps to identify skills to work on
It helps to identify tools to use and what to ignore
It helps with developing a plan that propels a trader forward to the goal of consistent profits
Im moving house at present and will add to this when I can slowly build up and clarify my approach. But the core components are all here now.