Tuesday, February 27, 2007

HOLY CRAP Feb 27 daily chart




Well, I traded today, terribly to say the least, but still positive. I kept my composure and ended with the same profit as yesterday, kinda weird. I wasn't use to the volatility and found myself adding to losers, good thing I was right about holding on to some of my trades. I really need to work on just exiting a trade if it doesn't go my way within a few seconds after I enter. Maybe I should make as many trades a day as I can to get more experience like Dr. Steenbarger talks about in his book to advance my skill level, of course I would be doing this on the simulator until I get better. I really want to trade tommorow from the increase in volatility, but I realize at this point that I'm missing something to my trading that makes me the mediocre trader that I am. I'm missing the big picture and the skill to cut losers in seconds after entering them if need be. I should never be in a position that is more than 1.4pts against me when trading ER2, not even 0.7pts. The hardest thing for a trader is having a profit for the day and then going negative. You will fight back as best you can, but sometimes you just aren't on your game and you can self destruct if you don't set yourself with a risk limit for the day.

I have a feeling to go long, call me crazy, after the dow drops 500pts intraday, who would want to go long? I'm looking at crude oil, and its at where it opened for the day after spiking up 2 dollars intraday. If your good at trading then these times are golden. Why am I thinking to go long? Well, tell me why oil is not up and why gold sold off today? Bonds sold off all day today and the VIX looks like a ramp that evil kenivel would ride his motorcycle off of to the moon! I've been watching the relationship between oil, gold, bonds, and certain etfs, and I'm begining to think that there may be better strategy for me to trade than trading index futures. Right now, the problem is time, and getting experience to test my ideas. I need to write out a goal for what I want and I need to accomplish one goal at a time and move on to the next. I need an organized setup to my research and I need real time experience in order execution for scalping profits.

World market plunge

CNBC video of the markets dive.

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