I have a trade check list for each of my setups, kind of like a pilot's check list. When I see a trade forming, I run down my check list for that setup. There are times when I over ride something (usually get burned), but it helps a lot.
The following user says Thank You to Tiger45 for this post:
Yes, I can see using some techniques that it works very well. I am trading poorly as I am not doing the things I have done in the past for success.
I record each days session using HyperCam and capturing both screens with DOM. This helps me figure out what I do wrong and what I am thinking. I notice that when I am trading poorly that I am not talking or educating myself as the trades go along. The best trading I have done is when I do the following:
1. Read my rules
2. Proper time for prep, setup
3. Have a story, so if market goes long, then this this this, if short, 1..2..3.. etc..
4. Talk through what each indicator is telling me and price action and understand as a student/teacher would see it.
I did none of those today. "I think it is short.." "I think it is long..."...
Terrible, but changeable.
The challenges with a checklist is that this system is HIGHLY discretionary. When you are on it and stay on it, you can easily pull 10 points a day out of the market and every pivot is clear. However, when you go blank like me... well.. You end up BE or slightly negative...
Thanks for the reminders and I love this game.
--EDIT: I used to have a checklist that if 610 wasn't looking good, then I am not going in. I have long stopped doing that and that is probably why I am getting eaten.
The following 2 users say Thank You to bluemele for this post:
Thank you! I will check it out, but I have gone through 100's of systems, 1,000's of indicators and I basically come back to how the market feels to me more than indicators. Sometimes I am grooving and other times, out of groove.
1. -3 ticks, I knew this was a bit dangerous, but I could see it popping from here. Nice separation on BB/MACD and a support area with trendline, but on the wrong side of it. Expecting possible 50% retracement.
2. +1 tick, this I though for sure was going to be a winner. It moved 11 ticks in my favor and then in one fell swoop hit my stop on the nose and went running off to give others profit!
3. -3 ticks, this was my first revenge trade of the day. It was a 50% retracement and nothing else really, but wanted it to go down! haha... My plan was that there was a bear flag on 50K and daily with some separation now building on weekly.
4. No FILL, and happy I didn't. I canceled it quickly.
5. No FILL, I thought this was going to go down, but support was too strong.
6. -2 ticks, this was a retracement off the area for the last trade I believed and a fib area.
7. No FILL, and this moved too quickly for me to get filled. I was looking @ 200MA and keltner aligning. However, the GAP close for the day (blue line) was still a half point away, so I knew it was high risk.
8. -2 ticks, Nice bar setup, MACD's looking weak! However, they sat there for quite a while and no movement and I was thinking that this will retrace so I exited right before it dropped.
9. -5 ticks, REVENGE TRADE! I WILL GET ON THAT SHORT NO MATTER WHAT!
---- Started new day as I reached my threshold (-1.75 for that day)
10. -2 ticks, stupid. emotional, lost focus!
11. --5 ticks. Same @s last trade.
12. +12 ticks, this was a decent trade and had I held it with 5 tick stop would have paid off nicely. This was right after some news and the second it dropped, many of the MACD's had separation to head back up so I exited.
13. +1 tick, well, I thought it was going short soon and this was a bear flag. I was off by just a few minutes! It then dropped about 8 points.
The trades circled are acceptable to me and the others were just not thinking. I was not talking to myself and teaching myself as I traded etc...
Typically, I would stop trading for the day and my day would be done and I would stop trading (PERIOD) IF I were trading live. But, to get a bit more experience, I 'pretended' like it is a new day with a new starting balance and start with a 0 balance.
I have a new rule that if I give 3 full gifts in a row or -150.00 per contract, then I will stop trading for the day as I am not seeing it. Had I put this rule into place several months ago, I would probably be very profitable.
It doesn't seem like it now, but I am trading the worst I have in months and hope to get back on my 1.5+ points a day soon. I would have days back then where I would give away 800-900 per contract and I would make it all back in one run OR most likely just stop for the day. So, now I have a tight limit as to limit my over-trading and losses.
Up 9 ticks this morning (SIM) including commissions ($5.00).
I totally misread the bull flag this morning at the start of the NY OPEN.
I thought I saw short, then saw amazing strength all the sudden and I chased my entries and got off on the wrong foot. I then relaxed, breathed, focused on talking to myself, remembering my strategy for the day and focusing on areas.
It was very choppy AGAIN for the first 30 minutes and then a nice trend down. I will be more cautious in the first 30 minutes now for a bit as it seems a definite persistence. I am thinking that there is a real tug-o-war going on between bulls/bears.
Fundamentally I would put more weight of a deeper retrace and I think all it will take is a little bit of unexpected bad news. I think company earnings are holding everything up for the time being, but when government data continues to erode and a weak shopping season could further put things in a spin. WE WILL SEE!
1. +0 ticks, Not a bad entry, but I did see a retrace coming on the 144 MACD with some separation so I decided to exit my trade and wait for it.
2. -5 ticks, Ok, now this was not a good trade. I was 1 point from the pivot (chasing) and I assumed the quick drop was a head for the head and shoulders. The 50K chart was looking delicious for a long, the daily looked either way to me and weekly is still long. 4181 and 1597 are all saying short and I could have paid attention.
3. +0 ticks, too early, more to go in this move, so I manually exited, but I thought I got a couple ticks out of it but it didn't fill me till BE.
4. +9 ticks, I was having a lot of noise in my head on this trade. I couldn't focus but my entry was great. I was not feeling confident in my ability at this point and telling myself that it will probably be just another gift. So, I exited at the first slow down! I should have called it a day at that point and I was considering it.
5. +1 tick, I was still thinking long. Boy have I been counter-trend trading lately.
6. +7 ticks, not good entry, lucky I got my few ticks.
7. NO FILL, This looked pretty good, but not great. I liked the 200MA, but the MACD's looked like a little more up.
8. NO FILL, Ok, I was still not feeling super confident! So, it sat on my price for a good 5-10 seconds and didn't fill me on this one either. I didn't chase it as I was having trouble reading direction.
Seems like the last week or two the market has been very 'jumbled' and ranging for the first 30 minutes. This is hard for me to hit any trends clearly and I have not been adapting to this different market condition. I keep thinking I will get those 'trend for the whole day from the Open' days.
To capture a max of points you need to become aware of the market structure and develop an accute sense of direction or where is price is more likely to go at key anchor points. That's similar to drawing a curve in Illustrator from Adobe, you can only anticipate the direction to come at key anchor points:
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Look at the TF chart below. I have circled key areas where a bounce is likely to occur. Place your trade in relation to these areas.
The following 2 users say Thank You to trendisyourfriend for this post:
How are you deciding where those points are? I typically use HIGH VOLUME AREAS which are pretty evident from price action, S & R (basic, no pivot point calc's), fibs, trend lines, keltner, 200MA, etc.....
Seems you are using volume, channels, Pivots, MA's etc..
Why do you take those trades? Or did you take those trades?