I'm not actually trading today, rather I'm adjusting to the new look and feel of my primary trading chart. I've used the 5M for a long time as a confirming type of chart but not as the primary for a long long time....so I figured I'd get used to it today and see how it goes...

It's different sitting here knowing I only need to make a decision once every 5 minutes. I kinda like that knowledge. On the other hand, boredom can set in even faster. So tomorrow when I start actually trading it, I'll be sure to have something else to do besides stare at the countdown timer at the bottom of the screen. I've set it to sound an alarm when the bar is almost done so that's enough to allow me to read, listen to music, do some push ups, etc.....without worrying about missing something.

On the other hand, my revised trading plan has worked pretty well so far this morning, PG1 was obtained and now PG2 looks likes its in play. And as I'm typing this, PG2 was obtained and now PG3 (not marked) is also in play.

EDIT: Were I in this with a runner, I'd be trailing the stop now at PG2.







And here is PG3 in play.



And PG3 hit. 110+ ticks from original entry area and around 90ish ticks from second entry opportunity.



And that would be the end of the trading day....I'll make some notes in my paper (evernote) journal and be done for the day.

First journal entry in Evernote. I think I'm gonna really like this software. Its easy to use, syncs to the online verision and has a ton of useful applications...and its free...

Done for the day.....

So actually did take a trade not to long after I posted this morning. It was a counter trend trade or as I like to call it, a BTL trade. This called for smaller size, smaller stop and more aggressive profit protection. All of which I did.

Since on BTL trades, I require an exit at the first logical place to exit which I did at the 50% level which was also the prior PG1 level as well which often acts as resistance on BTL trades. The opposite MA also makes a good target for these trades. However, I normally choose the more conservative exit on these.

After closing the trade out, I had to leave the house and I didn't get back until a couple of hours ago.....finally just sat down to type these notes.

I've also decided not to mark exact trade locations any longer. Fact is, most times its an entry zone much like I've drawn on the chart today. It's why its called discretionary trading. What's important is that the zone is correctly identified and the risk is minimized if possible.....exit zones the same, exact price isn't important....exit logic is.

Great minds think alike!




Just now found your journal here. Glad you're back buddy.

PandaWarrior 

It's different sitting here knowing I only need to make a decision once every 5 minutes. I kinda like that knowledge. On the other hand, boredom can set in even faster. So tomorrow when I start actually trading it, I'll be sure to have something else to do besides stare at the countdown timer at the bottom of the screen. I've set it to sound an alarm when the bar is almost done so that's enough to allow me to read, listen to music, do some push ups, etc.....without worrying about missing something.

If you have the time you can post your trades in real time.

deaddog 

If you have the time you can post your trades in real time.

I used to think like that too... however there is something to be said about a switch getting flipped in your head once you have exposed yourself.

I think exposing yourself to the market in real-time takes concentrated effort and gathering vital pieces together. He isn't simply sitting there drumming his fingers even if he says he is bored.

Being correctly bored is an important part of successful trading.

deaddog 

If you have the time you can post your trades in real time.

I'm trying to remember to do that....but honestly, I rarely remember to capture live trades....most of the time I'm feeling a little frazzled in a trade and only thinking about one thing.....

But I'll do my best from now on....

Thanks for reading...

Lol, as soon as the trade was over, I remembered I'd promised to try and capture live trades, but like I said in an earlier post, the exact entry and exit aren't really all that important, what's really important is the logic for both....

So in keeping with that understanding, I've marked my entry zone with a green box....and here is the logic.

1. Price had broken the trend line....and while the London session was down, based on the 60M chart, I felt we would be going long at least early this morning....it was due for a break out of sorts.

2. All my long filters with respect to the 5M chart were long. Only thing required was to find a lower risk entry.

3. After the TL break, it pulled right back into the support zone. Ok to get long.

Exit Logic:

1. I used a profit grid (PG) from a different bar than normal to exit. Usually the OR determines the grid size but with the OR bar so large, the grid would be HUGE, so I used the prior bar and it worked pretty well....but I was waiting for the OR bar to form to determine the PG and it just kept getting bigger and bigger so I knew I needed to use the prior bar...so most of the trade, I was trying to determine where to take profits....I moved my target well out of the way until I could figure out where I wanted my grids to be and then I just closed the trade as it was already past the PG1 level....and that's where I always take my first profit.

I am more than likely done for the day, but I have a couple of hours to kill so I'll hang around and see if something develops. However, with huge OR bars, I have noticed that most of the time, that means a rotation day and I suck at those...we will see.

Today was inventory. I traded small and cautious before the number....Had a scratch and a small loser. Most of my trading criteria were long....but not really the way I like to see....then price went into a consolidation and the broke support.....Then just before the number, saw what I would I call a 50/50 trade. 2 of my 4 criteria were met for a short....which makes the trade 50/50....so I waited until seconds after the number to see how the ladder would respond and before I even registered that I knew it was short, I had clicked in and in a couple of seconds, price was as at +50 or so.....and then the unthinkable, a trail stop kicked in....I thought I had deleted all those damn things....but apparently not...and it moved to fast for me to keep moving it out of the way.....eventually I gave up and let it trail.....and I got like 30ish ticks out of it....but it went on to meet the profit grid objectives with no problem....leaving around 40 ticks or so on the table.

I instantly deleted the trail stop and checked to see if I had any others lurking around....I didn't and now I no longer have any auto trails working anywhere.

So then a trading buddy of mine got long way down at the bottom and scaled in and out all the way back up where it topped out and where I got short again....trouble was, my trading day was almost over and so I set a target of around 30 ticks and took off.....and again, left a ton of money on the table....

Once I finally logged back in, I made the decision to rearrange my schedule to at least allow myself to trade til noon. This will allow me to take advantage of opportunities as a professional trader....That being said, If my profit objectives are obtained, I still wrestle with the idea of trading longer and giving some or all of it back. But with regards to this, trading the higher time frame, using my 4 rules to enter a trade and knowing where I can take profit makes it less likely I will give all of it back....

So a profitable day made somewhat sour by the knowledge there was lots more and I actually sold very near the top of the sell off....

I've been watching and tracking how much value "macro or global" analysis helps or hurts my personal trading.

In other words, if I do much higher time frame analysis, say a daily, weekly, monthly type of analysis, does it help me in my intra day trading?

Or does it hinder me or even worse, cause me to do things that are long term advisable but short term stupid?

Here is my conclusion....

Macro analysis sucks.

It does not help me one iota....and in some cases causes me to over think things significantly.

Shorter term planning does have value....but since I am mostly a momentum hunter on an intra day time frame, global macro analysis is useless.....and i suspect is for most day traders judging by how many get it wrong in the near term.

Yes I look at recent daily bars, what did they do? Why did they do it? How could I have better anticipated those actions? These help in the short term but longer than a few days seems to simply be counter productive at best and an enormous time waster as well.

A few people have asked me over the years to define myself as a trader....and the best I can come up with is this:

I'm like a little puppy dog following the momentum around on a leash of price action clues....I go where its easiest to go and to go there the fastest. I'm not interested in always struggling against the pull of the leash.....I want the maximum amount of gain for the least amount of effort....darn that sounds lazy.....but its true....EDIT: and I'm not interested in needing to be right about where this sell off or rally might actually end before I start going the other way....too much work to "call the top or bottom"...that's an ego thing and my ego has a way of leading me down some dark alleys.....so follow the momentum....KISS

So gone are the days of killing myself trying to figure out what price will do next week or next month or even tomorrow...I care about what its doing right now.....and what it might do in the next hour or two....after that, I don't really care.....

This makes me happy.....I'm glad I did this work....to avoid unnecessary work tomorrow.....