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Looking for the long move all day, and when does it happen? just before the close. When I wasnt trading anymore. Goes to show you, maybe its important to trade right to the pit close.
Contracts are split, rollover volume. I am switching on Monday, so today was a day to be selective.
Lots of false starts, and untill 2:20, a tight range on the April contract.
I dont look at my P&L while i am trading, and I only keep tabs on my daily loss limit. I was 1 more losing trade away from it today, as I was -39 after 4 trades.
Protecting ones capital is really important. There are many important things, but protecting oneself against a big losing day has to be up there. I have heard many speakers talk about it. It is so ingrained in the successful professional, that they are not gamblers.
Neither am I. I did, at one time, gamble. Blackjack in Vegas or the Bahamas. You cant get an edge. the house wins.
I am sure there are many that will want to discuss this point, but it a mathematical certainty.
Like winning the 6/46. The expected value of $1 risk is 14.00MM to 1(give or take), therefore for the expected value to equal the risk, the pot has to be 14 MM. Dosnt happen very often. Otherwize, the loterry corporation of ontario wouldnt make any money. And they make a lot of money. in fact, the lottery is like a tax on the poor.
And I dont gamble with friends either, even at golf. Even if it is just a small amount, a few bucks, it creates anxiety in people. And they often get upset. Cant play angry...
Try to learn from the professional floor traders [successful floor traders], and ignore the majority of the rubbish [I would say 99%], and non sense stuff that is on the internet. It is just my opinion, one man's opinion.
Broker: Advantage, Trading Technologies, OptionsCity, IQ Feed
Trading: CL, NG
Posts: 1,038 since Jul 2010
Thanks Given: 1,713
Thanks Received: 3,863
I've noticed a majority of floor traders have a hard time transitioning to the screens/up stairs. I would agree that a lot probably have excellent advice on money management, etc. But as far as screen trading methodology goes, many tend to have a hard time there. Of course there are some exceptions.
Floors traders at this days are not the same anymore, fact; The floor traders that I have learned things from, can trade from anywhere from the floor, from the screen and from a piece of paper and a pen. They made the transition from the floor to the screen and manly trade from the screen at this days but their background is the floor; And I am talking about those type of floor traders who can trade from anywhere...
But, yes I understand what you are saying.
Ah, the mystery surrounding the floor trader. In the pits, the contact sport of investment. Theres no school like the old school.
Then again, I have heard professional floor traders say that the market they once traded is not the same. Much greater volume, much tighter margins, many more markets. 24 hour trading. And they tell of the challenges of converting to electronic trading, or screen trading, from floor trading. Not to mention HFT's, which can serve to really mess up your day.
Not many floor traders left. In fact, like many things today, the computer is where its at. And to be successful, you have to trade the LCD.
But, the things that will help a trader be profitable are the things that are not exclusive to floor traders. Thats risk management, money mangement, discipline and phsychology. Come to think of it, thats the best recipie for any successfull business.
All one needs to do is see the PBS documentary The Trader that follows Paul Tudor Jones throught the crash of 1986. Floor trading at its finest...of course thats over 25 years ago. Things look a lot different now. And he has to be one of the most succesful traders around. He did it with Elliot Wave Theory. No wonder he dosnt want the video circulated anymore.
Now, all one has to figure out is whether what I am stating is 99% rubbish or 1% gold wrapped around gems of splendid truth.
Well, not an easy day today, espessially if you were looking for support to go higher, which I was. I was a reluctant short seller, but they were my best trades of the day. It was hard to see today, as any expected swing to thge high turned out to be a tiny reversal.
8 Trades. Felt like I was a little behind in reading the tape today.
+2-14(Long)+18+6+21+9-15+10=+37
was a very stutter step market, but if you looked to trade with trend shorts all day, you would have been fine.
It certainly wasnt an easy day...both my losers were long -14 and -15. Saw 106.80 as suppost, and I thought we would make a run at 108.
If i am green, I am happy.
I got 2 shots of my 2 best trades today. I only have a couple of screen shots because I cant do it while the trade is tight and I am managing it as its developing. I can never get a shot of a failed trade, as I am monitoring it from start to finish and I cant take my eyes off the screen. For longer trades, I am profitable, so I can let it go with my trailing stop.
My goal for today was to exhibit more discipline. I seem to see my trade count creeping up, when I really want to keep it down and focus on the very best entries. Ideally, I would like to take less than 7 trades. And hold them longer, give them time to work. In addition, I was determined not to let a failed trade go right to my hard stop, depending on price action. Anyway, that was the plan.
I am trying to develop an edge in trading support and resistance levels. there are the standard levels, like previous highs and lows, as well as areas of consolidation on the left side of the chart, and of course, the 105, 106, 107 where targets and stops are set, a tick or 2 above or below.
Mac at PAT has a chart lesson, and its on the ES, but I look at it every day. Now, he trades the ES with a 2000 tick chart, but I admire teh way he sets his support and resistance levels, and I have adapted it to the CL. i put the levels in where I think they make sense, based on price action on my 5 minute chart.
I didnt trade around the DOE report, for the simple reason though prices worked their way up from the open, they pulled back to the 106.30 level and held there till after the news. I was looking long from 106.30, and and after a small gain, I got a great entry at 11:17:03 long at 106.42.
What was my reasoning for taking this trade, at that point? it was a breakout PB of the EMA, it was a S/R line at 106.40, and it was the beggining of a TL that I drew off the the 106.30 level.
90 ticks. After that trade, I was very happy, maybe a little too happy. So, despite the fact i was thinking short off the high, I decided to call it a day. i didnt want to mess up that great trade by taking a loss.
In addition, I felt I managed it very well, got the most out of the trade. And I took very little heat. My stop was never in jepardy. If only every trade worked out that well.
I was looking over Michael Martins book The Innner Art of Trading, and an idea I am determined to incorporate into my trading is keeping losses small. It has been Martins experience, that trades that work out, work right from the beginning. Taking losses, in particular, small losses, involes self discipline and surrender, to quickly recognise that the trade is a loser, and to take action to get out. If one is wrong, one can always get back into the trade.
" Winning traders dont waste energy thinking about losing positions. He thinks clearly and focuses on taking the next steps, adding to the winners and taking on new poositions. His portfoliio is in hearmony with his head. His positions and his portfolio are compatible with his goals. They are making money. As a trader, your agins will look like gains on your profit and loss statement when you keep your losses small. "
"The minute you become emotionally attached to a stock(positon) you lose the rationality to keep your losses small. You've become emotionally attached to the outcome."
