How did it go
Got off to another bad start again today. I chased some trade entries when I should have just "thought" I missed the entry. Then I would have been glad I missed the entry watch price come back the other direction.
So once again, profits were eaten into by mistakes I should not have made.
The Chart for today will be in the Next post.
Trade Narrative
I have not heard from many people yet about this blog, I don't suspect there are a lot reading yet, but I'd love to hear from more of you. I'm trying to figure what level of detail to place in this public journal. Let me know. For now I'm switching more of a summary than I have used in my earlier posts.
Don't do that again - My first two trades I have to describe as "Chase" entries. This is where I enter late after the signal and can be as much as 1 point from where I feel the Signal triggered an entry. I was questioning the entry signals early as the volume was noticeable below the average expected volume for most of today. This light volume should have told me to ONLY take proper entries or wait for the next signal. My best entries can come a minute or two after the signal, but waiting for a better entry can also leave me out of the trade as well.
I took it easier and did not trade much more in the consolidation range that lasted for the first hour and a half of this morning's session. Saw some counter trend trades, but my rules have me on the sidelines until I have profits to risk against these trades.
Bought the Low - I felt a little better when I bent my counter trend rule and took a long trade near 1526.00 after 11:00 CT. This turned out to be the low of the day. I just saw a "big push" lower that only made a quick 2 tick lower low before price popped back up. On "low volume days" I like to fade the extreme moves. That is as long as we do not appear to be trending. Now if I just held on to this entry longer. I took some earlier profits, trying to make up for my first bad trades. My thought was that I'd reenter, but there was not a good entry until price had gone 5 points higher.
Hard to balance between "taking profits" and "letting profits run" and be right all the time. I just need to figure out how the market seems to make me feel that I get this wrong more than I get it right. :-)
Lessons Learned or Still Needing to Reinforce
Several lessons from today.
- Treat each trade separately - do not try to force one trade to compensate for prior losses.
- Do not chase Entries - I have told myself this before, but I keep chasing what I "want" to be a run away move. Not going to happen with low volume.
- Re-evaluate the Counter Trend Rule - On low volume days, I think I'll have to be more willing to take trades that are defined by my system as counter trend trades. I normally try to avoid these trades when I don't have profits built up for the day to risk on these trades. When price is chopping in a range, good signals occur on the edges of the range, but these is no real trend.
John
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