Wednesday, April 27, 2016

Sticking to known patterns ORIG, UNXL, LGCY

It's funny... We learn/know things but we really don't LEARN/FOLLOW them fully until it affects us in a way that forces us to change ourselves in order to either benefit ourselves to prevent harm. There's a huge difference between KNOWING something and DOING something about it.

For example, I know i should only be sticking to known patterns that i've been successful with for now. That i should stick to the 1 or 2 plays i know best and master them to the maximum extent as possible before moving on to learn a new type of play. If I do play a play outside my comfort zone, my rule is to backtest it first and paper trade it at a minimum of 3-5 times to make sure the strategy itself is legit and possibly experience the emotional uncertainty I anticipate going through while in the trade.

But what has been going on this past month? My known/best plays that I've traded have been:
1) Buying dips/anticipating gap-ups nxt day using the ABCD/F3 pattern/FOUS Survival Patterns
2) Buying intraday/multi-day/multi-month breakout FOUS Force patterns

The last two trades i've done have been more focused in the market open which i've studied through the FOUS F1 pattern and a very tiny bit through a gap+go scalp. I get the strategy but applying it is a whole different thing. I'm nowhere close to being proficient in it yet i've been using real funds on something i have not papertraded trades in real-time to. I've been breaking rules left and right here. Whats even worse is that i've been trying to fit the pattern to me instead of finding the right market open pattern that I fit with.

http://averagejoedaytradr.blogspot.jp Ed Martin's blog
Chat moderator at Warrior Trading and he mentioned being activein Investor's underground at some point.

I've really been reading his blog in depth this past month, read it at least three times already and i will be mostly using a modified version of how he trades the open. Ran into more videos and read alot into how to trade the Opening Range Breakout play. Funny, how different strategies by different gurus are actually very similar patterns but with just different names... The thing that really attracted me to how he trades the ORB vs how i've been is that he gives the chart time to form and looks for a specific criteria before he trades it. Since the market open types of trades i've been exposed to so far has been the gap+go from DTW (which moves waaay for me) and FOUSF1 (which is horrible for me because i've seen him call 2-3 1minute candles as a breakout to as far as a 1hr timeframe). Ed Martin chooses only to trade them i believe when the chart has at least 15mins.

I'mma keep these as short as i can

ORIG



Positive Catalyst, Nice midday survival/F2 Pattern, had AH/Pre-market activity, Gapped past 200day MA.. F1 breakout of pre-market high or 30min ORB.

LGCY


Positive Catalyst, Nice two-day survival Pattern, had AH/Pre-market activity, Gapped past 200day MA.. F1 breakout of pre-market high or 30min ORB.

UNXL


This one was a meh, Positive catalyst, clearest Intraday FOUS Survival pattern though, had AH/Pre-market activity. This was the only one that gapped and crapped, reinforcing the need to have a specific criteria in place if i want to buy at market open and not just blindly buy at market open. 15-30min ORB worked for the other two so i will be focusing on a F1/Triangle/ORB play at that timeframe.

Overview and Random similarity



2 out of 3 Gapped and had F1/ORB pattern type of plays. 1 gapped and crapped which is reinforces why i like being in the stock the previous day in anticipation of a gap-up AND a need to have a specific criteria in the morning to play and not just blindly buying at open with the hope of a spike.


Just wanted to include this... 2 different types of catalysts but the peak and troughs of ORIG and LGCY are almost exactly the same up to +/- 30 minutes. Its so weird at how similar the charts turned out. Still somewhat of a F3 but very choppy, not clear and will not be in. If there's no AH/Pre-market activity, I expect these to to just fizzle/die out and maybe even fade back down.

Closing Remarks/Immediate Goals:

 Almost all my mistakes have NOT been because of the market but because of my inability to stay disciplined and stick to the rules my mentors and I have formed. The goal is to quell/defeat/ELIMINATE this enemy of mine that is being an undisciplined trader. Self-Sabotage is a bitch. So for the next 2-3weeks, I will ONLY be trading the 2 plays i've been successful with and  papertrade using ORB 15-30minutes after the market open to get more experience with it. I will also try to control myself from a new term i've came up with, Zombie Trading =D... Trading when you are in mental functions are compromised, making sure i'm in good physical/mental health prior to market open as well as having done my homework and being well-prepared vs rushing to get to the market open.

For the next 4weeks:

1) Trade only the 2 setups i know

2) Paper trade F1/ORB setups

3) Make the trading binder i need with all appropriate QRC's (quick reaction checklists)

4) Finish Trading in the Zone within 2-4weeks and start on Market Wizards hedge fund traders on Audible

5) Slowly start doing TriForce Trader's Homework. It's very very complex relative to the strategies from IU/Sykes/FOUS so i really need to take it slow and make sure that I don't overwhelm myself and fall in love with overstrategizing/over-use of indicators.

6) Slowly adjust from My current VWAP+9/13EMA+5/35/5 MACD+MAW/HMA/SMA setup to the Ichimoku Kinko Hyo setup. Funny how i use the area that the multiple MA covers is almost the same to how someone would use the area that the cloud encompasses. The MACD intervals are basically the same as the Ichimoku's cept that Matt owens has an 18/52 type setup and i would use a 5/35/5. One thing that i really like is how the ichimoku uses highest highs/lowest lows in its calculation instead of just the closing price which i believe results in a more accurate and precise measurements. I anticipate having a much faster analysis/easier more efficient use of mental energy once I fully convert my trading to the Ichimoku Cloud.

7) ** I haven't been on a consistent sleeping schedule this past month due to EOC/PCS Outprocessing/Work schedule. I need to really, work on having a consistent process on preparing for the trading day if i can expect any sort of consistency in my trading itself. If i'm ever sleep compromised, I will not be a Zombie Trader !!

AAAAannd... as much as i think his marketing is a little too much for me... and as much as i've heard him repeat these damn rules/lessons of his.. I still have problems fully implementing them... It's not what you know but how you apply the knowledge that counts.. http://www.timothysykes.com/2016/04/5-lessons-today-best-day-2016-far/

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