Beast mode activated

I just got my first A+ plus for the day. I'm working nights, got home at 6:30 AM. Went to bed rather than getting on the computer. Woke up at, looked at the charts. Saw the structure. Saw it break. Took the trade. Set my risk ratio to 2:1, and let the trade go. I followed all my rules. that's why I got an 'A+' This is what I want to be routine.



I'm not sure if I'll trade tomorrow or even if the market will present me the opportunity in the limited amount of time that I will have. So far this week's is shaping up to be one best so far. I like what I see, but I know that I still have a ways to go before I feel confidant that I am where I need to be before I can say to myself that I am a, actual trader. I am excited that by now defining some rules and having a way to measure how well I'm following them, I now might be WELL on my way to figuring it out.

TheTradeSlinger 

https://imgur.com/a/LDtqot6 See the attached image here, how did you know these weren't the breakout points? (Hint: you can't know) Until you use a methodology that reflects or mirrors how the markets actually move, you will continually chase the next strategy or idea that "looks good". Michael, I really think you can do this. Remember, buy support, sell resistance.

@TheTradeSlinger

Buy support. Sell Resistance. Got it- but I don't 'got it', not really, not yet, but I want to. I also want to adopt and understand a methodology that reflects and mirrors how the markets actually move. So when you say "buy support, sell resistance" I am actively engaged and using everything at my disposal to understand it and try it.

I know I can do this, but it may take a couple of tries. Thank you taking the time, I really appreciate it.

TheTradeSlinger 

These trades were taken on the 1 minute timeframe without referencing a higher timeframe. You were clearly trying to trade the 1 minute using ONLY the 1 minute information (price action). Try having reference points (S/R, levels, etc) from a higher timeframe that informs your decisions on the lower, trading timeframe or else it is too easy to get chopped up trading a lower timeframe like you did. Higher for signals, lower for entries/exits based on the higher.

Yup very much agree with using two times frames to not get chopped up, higher time frame chart for longer term trend, lower time frame for short term counter trend pullback entries in my case.

I sincerely dislike the evil long bars you get on time denominated charts not showing higher highs and lows on their journey from A to B so I use a combo of tick charts (could have been volume or range bars etc just as easily, tick charts were merely the first thing I saw after time based that I liked and simply stuck to).

But thats just me and I most certainly don't want to add any additional choices into the equation, and if time based charts work for you and you like what you see by all means stick to them.

The thing is there really isn't anything, be it method or settings or what kind of charts you use, that is inherently superior to sthg else, sometimes this will work better, sometimes that, the trick is staying consistent with sthg you like and that speaks to you and that is aligned with the way markets move in waves.

Constant tweaking is a very serious problem that for most continues their entire lives preventing them from ever becoming profitable, somebody once said that people can take a perfectly good system and kill it trying to make it perfect.

Trying to analyse and read sthg into the shape and size of waves hitting the shore is doomed to failure, every wave is going to be different and not repeat. The edge is in figuring out if the tide is coming in or going out.

Tide is the higher time frame or anchor chart, wave is the part where you try and find a place to get in and where perfection without heat isn't possible nor necessary.

Good luck

:-)

1BSD 

The thing is there really isn't anything, be it method or settings or what kind of charts you use, that is inherently superior to sthg else, sometimes this will work better, sometimes that, the trick is staying consistent with sthg you like and that speaks to you and that is aligned with the way markets move in waves. Constant tweaking is a very serious problem that for most continues their entire lives preventing them from ever becoming profitable, somebody once said that people can take a perfectly good system and kill it trying to make it perfect.

Yeah.

There are good ways to trade and bad ones, but no perfect ones, and no "best" ones either.

You will probably change everything several times before you have something that is consistently good for you, and it won't be what anyone else uses. Which doesn't mean you shouldn't pay attention to anyone else, just that you should know that you won't end up doing the same as they do, no matter what it is.

The rules look like a good step. I would just add to make sure that you don't let any losses grow beyond a pre-determined point, which you set before the trade and don't adjust while you're in it. But that's just what's important to me, and like anything else is a suggestion only.

Good luck.

Bob.

bobwest 

The rules look like a good step. I would just add to make sure that you don't let any losses grow beyond a pre-determined point, which you set before the trade and don't adjust while you're in it. But that's just what's important to me, and like anything else is a suggestion only.

Totally agree with that, one of, if not the most important thing in making it to net profitability !!!

If you're method has an edge the rest is up to money management, and as long as you keep losses small and controlled and have take profits that are larger things will work out.

Have a great weekend all.

:-)

michaelroth 

@TheTradeSlinger Buy support. Sell Resistance. Got it- but I don't 'got it', not really, not yet, but I want to. I also want to adopt and understand a methodology that reflects and mirrors how the markets actually move. So when you say "buy support, sell resistance" I am actively engaged and using everything at my disposal to understand it and try it. I know I can do this, but it may take a couple of tries. Thank you taking the time, I really appreciate it.

Michael, I'm copying a post from another thread here with regards to levels/S/R:

Quoting 

Look left, levels, legs, momentum. This ^^^^ is the strategy. Look left: The current price action in the now is a direct result of previous price action in the past. Nothing on the chart can happen without it being set up to happen. Higher timeframes set the agenda, lower timeframes follow the higher, but change happens on the lower timeframe. Levels: Levels are areas of support and resistance. The higher the timeframe level, the more importance it has to the current price action should current price action reach the level. Markets move from untested level to untested level. First touches, second touches. Leg starts. Legs: Legs are the moves themselves, legs can be up or down. Legs have defined starts and ending points when looking left. Is price moving up or down in the now? That's the current leg. Current legs relate to / fit with past legs and their levels. Momentum: Accumulation/distribution, Price moves up to sell, down to buy. Up, sideways, down - > distribution. Down, sideways, up - > accumulation. Momentum is defined on a leg by leg basis. How did the last leg move? Up easy? Up hard? Down easy? Down hard? How is the current leg moving with regards to the pace or effort by buyers/sellers? How does it relate to previous legs? Order entry/exit: Buy support, short resistance on your trading timeframe. Don't mix timeframes when it comes to entries/exits. Enter/exit on the trading timeframe in the current, with reference to higher timeframes and left legs for trade management (targets: leg starts, next levels higher/lower, etc.. stops: exit the trade when the premise is invalidated, i.e. a level is broken against your position). General thoughts: Think in terms of inventory, which side is positioned in the current leg correctly, trapped traders, etc

"I am actively engaged and using everything at my disposal to understand it and try it."

I can tell, your posts/journal reminds me of when I was starting out, you have the drive and determination, you just need a "map" to get to where you are going and I promise that map is price action.

1BSD 

The thing is there really isn't anything, be it method or settings or what kind of charts you use, that is inherently superior to sthg else, sometimes this will work better, sometimes that, the trick is staying consistent with sthg you like and that speaks to you and that is aligned with the way markets move in waves.

I completely agree with you 1BSD.

It all boils down to CONTEXT, CONTEXT, CONTEXT.

What is most likely to happen next? How do we position ourselves to take advantage of the current situation?

Buying supports and selling resistances is like betting on a weighted coin flip.. yeah sometimes support will break out of nowhere against you, or maybe you sold the perfect higher timeframe leg start resistance and it just keeps going going going higher... that is all part of the game, you KNOW that in the long run the strategy will work.

Retail trapped

Today I give myself a 'B' for my trading effort, - 10 points for not following my trade with the trend rule. I took one trade, it was a loser. I took it because I was thinking the market was done making lows for the day. It wasn't. This is why I should be trading with the trend. Here's how it looks on the chart.



I did manage to follow most of my rules today. By doing so I managed to keep losses down to $29.77 for the day. Today really illustrated the importance of having those rules in place. Those rules are there to protect me from me. In review I was long biased from the get go, looking for some bottom that wasn't there and so I paid the price. My rules kept the damage to a minimum, made sure the price I paid wasn't too steep.

As far as why I was wrong today- sometimes things are really just a matter of how you are looking at them. Today I was looking at the market wrong, so I made a wrong trade. Also, I was anticipating a bull rally that never materialized, there was in fact no sign or confirmation of a rally, it was all in my head. FOMO probably played a part. I really wanted to get a good trade in before the weekend, so I started seeing things that were not there and jumping in to get that big move. This happens a lot to me and is something that I am working on. When I look at the chart setup like it is now, I can't see that retail trap. All I see is the strong bearish momentum, and that's something that I want to trade. I know by doing the work and taking a a methodical approach I can overcome my "looking at the market cock-eyed dysfunction"

Yet, even for all that I personally feel that I made really good progress this week. The whole rules thing is going to be a total game changer for me. Today, getting them mostly right, even losing money paid handsome dividends in proof of discipline and self control. Word on the street is this is really what separates the 95% from the 5%, so seeing it work, feeling it work, knowing that its working is giving confidence that I am on track and really its just a matter of time before I am trader.

By the numbers, this was a great week of trading for me.



Again, I'm more focused on the process at this point, but its nice to know that numbers are continually getting better week by week. This week I made deposits to my brokerage account because I'm seeing a lot of progress. I'm not there yet, but I know this point that I am well on my way.

15 minute minute and 5 minute timeframes

There might be something that I want to trade here. I want to know what the trend is on the higher timeframe and then trade the patterns on the lower. So my idea here is that I start with the 15 minute time frame- I'm now only going to trade long above the 50 period MA channel and short below it. Also, it is here that I'm looking for the broader context. In this example I see a clear trendline to the downside, and when price returns to it I would trade these pullbacks.



This is what the 5 minute chart looks like after I marked up the higher 15 minute chart then dropped down. the same 50 period MA channel acts as resistance in this example. My trading opportunities would be these smaller trend line breaks, which are really pullbacks? I see something that I really like here, but I'm not sure yet what the "IF THEN" set up is yet. Am I breakout, pullback or trend trader? What are my definable entry and exit conditions?



I really like what I'm seeing here because as a day trader with little capitol I'm really looking for the best daily opportunities. I feel the 15 minute time frame really does a good job of giving a bird's eye view of price action for the last 24 hours whereas the 5 minute time frame shows me were my best entry's.

Still looking for an edge

This is a really good video because it breaks down trading edge into 3 general categories- informational edge, chart edge and mindset edge. As a futures day trader there is little informational edge to be gained, and just knowing this helps me to better focus on where I should be looking to improve. When it comes to edge a lot of us automatically think about chart edge, but I really didn't think about having a mindset edge until I watched this.

Some time ago I didn't have a clue what edge was, much less where I was going to find mine. Today I at least know now what edge is. This video helped me to understand what it is, and maybe what my edge is- which is most likely a combination of chart and mindset edge.