FESX Trading Journal Using GOM Indicators

March 11th, 2012, 07:44 AM

My overall result for the first week of paper trading is -77 ticks.
It also seems that I prefer shorting and trend fighting

.

In the next week I will try to focus on both sides of trading, though all depending on my pre-market analyses (posted on StockTwits and Twitter, will add it here since next week) and developing market structure.

FOOD FOR THOUGHT:
- Morning checklist was urgently needed (done)
- Do not forget about VALUE, focus on market structure (ongoing)
- More strict definition of my SETUPS (done, filter added, review of the definitions themselves, focus on only one setup where supply meets demand)
- Check on my emotions regularly (ongoing) � it seems that following four days of loosing I got so excited by one winning trade that I wanted to overtrade (fortunately had too much to do

).

Thanks for following me.

March 11th, 2012, 07:10 PM

Here is my preparation for trading tomorrow with S/R zones.
We moved back to the long-term value.
If there is no sign of rejection tomorrow, the market will probably move only around this magnetic area.

March 11th, 2012, 07:26 PM

hadamkov

And not only for the market but for myself, too.

On the attached snapshot it can be seen that I took four trades today, which is the maximum trades that my trading plan allows per day. I also reached my target loss of 5% FOR A WEEK. In case of live trading, I would go back to paper trading.

Since this is a paper trading journal, I am still learning and today the lesson was really valuable, I, of course, will continue to trade.

Trade #1
Screatched - BE. Shorted the first (open) bar correctly, scratched the next bar out of mere fear and uncertainty even before the bar closed.

Trade #2
I assumed that the market could close the opening gap so I entered on the next setup. The setup was MORE OR LESS correct, however I did not manage the trade well even thoug I could see that it did not develop into what I expected and I let the stop loss to be hit.
Loss: 8 ticks per contract

Then, it seemed that I completely forgot to short

Trade #3
The setup was not clear enough, I took it despite of that. I did not manage it well again as I let it hit the stop even though I could see it was not developing as it should (hope and preyers are useless here

).
Loss: 8 ticks per contract

Trade #4
It was a nice setup and around a quite strong S/R area. However, with approaching noon, I knew there was going to be some chop. This trade was just sort of "out of fun". I secretely wished it would go my way but I was not granted that wish.
Loss: 8 ticks per contract

LESSONS LEARNED:
Areas to work on (weaknesses):
Fear again
Fighting the trend
No trade management today (maybe after the first mismanaged trade)
Entry on unclear setup

What to do:
I do need that checklist for the morning (have it in my trading plan, still not ready).
I do need to define my setups more precisely.

I am still learning and I like the way delta was developing today. I spotted a few things to notice in my next trades.

Thanks for reading thus far

.

good job creating the journal, a step in the right direction

March 11th, 2012, 08:11 PM

March 12th, 2012, 05:19 AM

I am unable to wait for posting later.
Am done with trading today.
Target met.

My first opportunity came before 9.30 so I entered my buy order. Was filled some 10 mins later. All those trapped shorts fuelled the move upwards. After hitting my first target I moved my SL to BE+1. Then my second target was hit.

Result: 8+12 ticks = 20 tikcs for the day. Daily target met.

LESSONG LEARNED:
I had to sit tight on my hands. First, not to hit the CLOSE button, second to keep them warm

.

Trading is about patience and sitting tight believing what you see.

AFTERTHOUGH:
It may sound funny but I feel dizzy and my head is spinning. I feel like I have conquered the market. I feel like I know everything about it. What a dangerous thought! I know what I feel. That is why I do not trade today any more.

Thanks for following me.

March 12th, 2012, 07:00 PM

This is my preparation for tomorrow.

March 13th, 2012, 03:55 PM

Today FESX gaped up on the open and the sellers were not strong enough to push the market back. However, I did not get any signal so did not trade the first move upwards. I got a signal for short, however it was approaching noon chop. Still, I entered the short trade, I was just curious if any sellers arrive when there were (or would have been) so many bulls trapped. Sellers did not appear so I scratched my trade at BE.

As you can see from the attached chart, the sellers did not appear afterwards either. However, I could not and mainly did not want to wait so long (I trade only in the morning) - the move upwards started only at some 3.30 PM - three and a half hours after I get out of my trade.

LESSONS LEARNED

Holding my trade was not easy at all. I entered one tick below my inital entry since I got afraid that I would miss it. Than after a long time of waiting, I first moved my stop loss, than I moved my profit targets several times here and there but finally I managed to persuade myself to really close it and let it be. The stop was hit shortly afterwards and I felt relieved I was out.

AFTERTHOUGHT:
I think I forgot about the gap up and lack of sellers. Otherwise I would not enter the trade around noon at all and would let the market be for today.

March 13th, 2012, 06:15 PM

This is my preparation.

We are a bit in the unknown now because of new highs. The S/R areas are from a year ago and will not have such impact. Need to look for the development tomorrow.
Need to concentrate on what sellers/buyers do and the structure of the developing day.

March 14th, 2012, 05:08 PM

My today's trading was the same as last week.

However, apart from trend fighting there was one more emotion.
After missing the initial move up, I was afraid that I would be left without a trade. So I took my first trade at the completely wrong place, not supported by S/R area. Before entering the trade I drove away that thought and fully realized it as soon as my order was filled.
I still am not able to close out the trade that I entered at the wrong place without any real edge.
Result: -6 ticks per contract.

Second trade was just an attempt and was taking too long.
Result: -3 ticks per contract.

Despite that I made only two trades, I now feel as of I was overtrading.

Also I wanted to be careful today because of the new highs but did not really think about it during trading.

The only thing that I really managed today was to move my stop losses closer.

LESSONS LEARNED:
Believe what you see.

March 14th, 2012, 05:35 PM

My preparation for tomorrow. Perfect balance today could have been a sign of long liquidation. We will see if more sellers enter the market tomorrow.

FESX Trading Journal Using GOM Indicators

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FESX Trading Journal Using GOM Indicators