Friday, February 24, 2006

Reflecting on past trade from jan 31


Upon further anaylsis of this trading day, I would have been better off setting an order with a defined stop loss in place and a target of 5-10 pts and if I was playing 2 cards I would let the other one ride for the potential 30-100pt run if I were live trading.

At my current stage I am trading intraday live on the YM with the tick, trin, dow volatility index (DJX), and using trend lines, CCI, momentum, MA's for longer term, fisher transform, chaikin money flow, woodies pivots, neak line break. In the future I look to getting a squack box, and backtesting some strategies using tradestation or wealthlab.

I'm going to put most of my equity in goverrnment bonds to accrue interest and all the while trade using this as my margin requirement, which is pretty cool. Also going to do some credit card arbitrage as described by my money blog by opening a line with Citi on a 0% APR BT and purchase line,,,it'll be great if I can get at least 5k to sock up in some govies or a high yeild savings account.

The best dam Charting software I've seen for free is www.quotetracker.com's product. Jerry MedVed designed it, and his cutomer service and upgrades to the software is awesome.
I'm going to learn how to use the paintbar to use with my own designed indicator in the future, but I may have brush up on learning code for the complex stuff.

Indicators help to confirm a trade, but price trumps all. When trading index futures the most important thing I use are trading support and resistance zones (aka pivot points and some people use woodies pivots, pivots can be calculated by h+l+C+C/4 and then you derive the high and low for the next day using this mean for your deviation number , but the best zones use the opening price plus yesterdays H and low and close, woodies uses h + L + O + O /4) , trend lines, tick, trin, put/call ratio, volatility index, past history of the price, and most importantly the NEWS.

What is the easiest to trade? Things with a trend, and those things are bonds, commodities, currencies, indices, and lastly stocks. Take a look at the weekly of the 2 year gov bond, or how about silvers nice climb nice run or the peso.

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