FFFCCCKKKK !!!!!
A few weeks back, I took a day trade and turned it into a swing trade... Then during the profit-taking.. I was sleepy and was dozing in and out during the market session til I realized I left 80cents on the table on 400shares which woke me up.
I started a small swing yesterday chasing a bit to anticipate the reviews but for some odd reason I doubled up into a full size with the 2nd half being a daytrade anticipating a gap-up. After my 14hr drive from Houston>St. Louis.. I was RACKED OUT.... As I had predicted in my last post, since I had two different plans, I ended up confusing the shit out of myself.. To make it worse, I was sleepy yet again.. I actually woke up for the open, saw the reviews on AMD going bad for the gaming crowd and that NVDA was tanking taking down it's sector as usual.. I KNEW I needed to downsize or get my full size out for a small loss and re buy in once AMD finds support/get a better entry for a multi-month swing in the next few weeks... but nope, sleepy me just went back to sleep. If I had my initial starter, I would've had no problem swinging since my risk had already been set--but now i'm in heavy on my daytrading portion and did not cut losses.. it's very similar to how i got stuck last month.. FML !!!! The swing setup is still intact but the risk downside is massive.. So not worth the risk/reward, but i'll play this on the side to start learning longer-term plays.
~~~~~~~~~~~~~~~~~~ MUST READ ~~~~~~~~~~~~~~~~~~
Watching Arick Russell + Stephen Dux webinars... I noticed something they've been trading which I have been learning from Ross. Ross/Arick will trade pullbacks on momo stocks on the 1m/5m candles to make a new high. Stephen dux was explaining something on a new lesson of his and Inoticed that it's the same chart pattern, but he actually described it based on the the emotions that is being put into the stock.. WHY exactly are these pullbacks making new highs?? Where are all these buyers coming from?? I could never figure out exactly why but That's when I noticed, the price action is currently consolidating near VWAP. Amateur shorts will get trapped by the VWAP and it will then become a trigger point on the chart for shorts to cover IF it breaks those points, to add to injury, longs will pile onto those shorts covering and initiate a massive squeeze..
**** Buying the first green candle to make a new high after 2-4 red pullback candles ****
**** Risk is set using the low of the last candle ****
HTGM
I started to use more timeframes on top of the 1m/5m when I started to notice that the pattern works beyond the 1m/5m timeframe last month.. In this case, the 1m/5m DOES NOT LOOK CLEAN AT ALL.. but dux started in 2.56 with 10k shares and added 20k more shares at 2.79 first candle to make a new high.. He did it with only his intuition/hunch, but I prefer to see a quantifiable reason behind it and on the 15m chart we can see the pullback pattern. (I'm shitty drawing trendlines so I prefer to see a pattern)
ZAIS
This one isn't as clean but the same thing appears on the 15m/30m chart this time.. Notice where the price action drops below the VWAP trapping shorts in...
EYEG
I thought the 1h Chart looked a lil' funky, but within those candles.. I felt something was hiding in there..
I went ahead and reset the timeframe to 45mins. and like magic, it appeared...
Growing up under my dad who is successful in insurance and bonds. I've always had a knack for actuarial science. I'm super curious about this pattern because this is quantifiable but very complex to code with my limited skill in coding. I really foresee a future for me in quant trading. But in the meantime, I need to master my trading emotions first and build up a nice profit cushion before I start testing quants. I have a feeling that those who can't trade become analysts.. And I want to be a trader..
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On Indicators
I KNOW my chart looks like shiet atm with so many indicators, but that's the reason I joined WT PRO. I've fallen in love with the equations various indicators have and in the search of the holy grail, i've fck'd myself over. I told myself that there are a TON of successful traders that uses no indicators at all and only rely on price action. Through WarriorTrading, I can easily grasp how Ross is reading the price and what is going through his mind. After I do more tests with Bollinger bands/Fibonacci, I will eventually wean myself off the indicators and just rely on Price action and maybe an indicator or two.
Due to work, I will most likely be able to trade only on thurs/fridays. And even then, just small size for now since i'm still getting used to DAS and eventually size up once i'm comfortable and not distracted by work.
Books to read for March/April:
The Disciplined Trader
One Good Trade
Momo Traders
Ross's book
December - January really was my first month of actual focused trading and it turned out very well.. Avg'd making 900/wk and losses were around 300/wk for 3 weeks. But work flipped my trading world upside down and it's tough to trade except on fridays when i'm off. I'm currently trying to go from Active Duty to guard--hopefully I can get my package through by april.
It's been almost 7 weeks since i've traded a go-to-setup. Because of my undisciplined experimental trades on TBIO in Jan and the 2 failed experimental gap and go scalps at the beginning of Feb. I've been too scared to trade and just been papertrading. My stats shows that the bulk of my losses have not come from the market or executions of strategies but from stupid mistakes/emotional trading. Impatience, Stress and distractions from work are the biggest factors for me not trading with real cash right now, It seems like i've been missing out on all these plays but I trust that in the long-term--Sitting on the sidelines for now and learning to control my undisciplined trades/impatience will benefit me much more for the years to come...
This is a marathon and not a sprint !!
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