Sunday, March 11, 2007

Learnig from Dr. B's book


This weekend I read some more of Dr.B's book, Enhancing Trader Performace, and realized that I'm still missing a lot to my game.
I think I work hard, but I need to work so much harder. I need to analyze my trades more; moreover, what time did I place the trade, where was the trade at in relation to the POC and trend for the day, and how did I do in terms of P/L on different types of trading days when comparing my trading performace on range days, trend days, and reversal days.

Something I need to start considering more when taking my signals is the time of day. There are key time periods during the day that have a high probability of being a time point where reversals occur, and time periods where the price has turned from range bound to trending. I will be looking at the program trades that occur at 6:45am, and at time periods 7:15am and 8:30am as key reversal points. If the price is making a new low or high of the day with volume and all the indices are participating and the time is AFTER 9:30am, then this could be a good sign that the afternoon session could turn into a trend. Also, watch out for the 12pm reversal on big trend days, this always seems to be the time point were big money exits for the day.

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