Thursday, March 15, 2007

March 15 Trade Summary




Trade Summary:
Well I slept in the this morning, so I missed the morning pop, and now I have to leave to tend to other things, so I only traded for about an hour. Overall, I took good setups today but didn't exit when there was block trades and extreme ticks. I was holding out for the bigger move, but price action was a little choppy and wouldn't give me my profit target that easily. We didn't have the volatility this morning like yesterday, so I should have taken scalps on the 3-6min volatility spikes and especially when there was block trades and extreme tick readings. Yen/US dollar was hard to read this morning.

Bad things today:
1.Didn't exit at extreme tick and block trade signal.
2.Hesistated to go long ZN because of inexperience trading it.
3.Moved profit target for bigger target, which would have been hit, however, the given market conditions were favorable to scalping in the 0.7-1.1pt range as opposed to my target of 2pts.
4.Should have given my YM reversal trade more time.(I took 6pts, when it ran 20pts, I didn't expect a reversal, I was just taking a small scalp on short covering)

Good things today:
1.Took good setups.

Observations:
NYSE A/D chart was a good indicator for todays morning trading.

4 comments:

Jake on 2:21 PM said...

Hey great blog. I realy like how you post your trades with charts.
Your trading style is also right up my alley.
I just opened an account and am funding it tommorow via wire to trade for the first time. My trading plan is simply very short term to very very short term.

I have to disgree with your saying you made a mistake on the YM by only taking 6 points, if 6 was your target you met that target and got out that's the right play. It could just as easily have reversed on you and you'd have no profit or worse.

LifePost on 3:41 PM said...

Thanks Jake.

I think you are right about taking the 6pts actually. It was unexpected at the time. It was only about 15 seconds after I closed my profit that JPY dropped lower pretty hard which added fuel to the reversal. If I had 2 cards I would have cut 1 at my target and held for an extra 2 min on the last card.

I believe the next week of trading will be very difficult to trade with quadruple witching this friday and FOMC minutes next wedensday(tuesday will likely be choppy, and monday could be wild with it being the day after options expire). If I had never traded before I wouldn't trade these days in my real account. If I were new I would suggest trading on the simulator for 3 months at least and only go to my live account if I was profitable and consistent. If you are new to trading and you want to trade futures in your real account before trying out the simulator (so you could encounter how your emotions affect your trading), I would suggest YM because there is less leverage compared to ER2, NQ, and ES.
Good luck, I hope you have a thought out plan and trading methodoly to your trading before you trade with real money.

Inept Trader on 5:59 AM said...

Lifepost,

I just stumbled across your blog yesterday, and I like it very much. I'm learning how to trade futures using MarketDelta combined with Market Profile. However, I am trading with a few hundred lots of Spyders, instead of futures, to keep my training losses down. Commissions are more expensive, but large losses won't be as devestating.

Anyways, I have a question. I understand using Tick extremes as exit signals, but what are block trade signals?

Thanks for the blog

LifePost on 8:34 AM said...

Inept-
If your trading SPY, then block trade signals will be a big help for you. I filter for block trades on a 2 tick chart on SPY for block trades larger than 200,000 shares, which tells you when the proffesional traders are entering. Block trades often occur near reversals, unless there is a breakout or the market is trending. I will try to post a SPY chart with block trades signals, but for now check out my IWM chart that shows block trades.Checkout these posts:

http://highprobability.blogspot.com/2007/02/feb-22nd-daily-learning.html

http://highprobability.blogspot.com/2007/02/tracking-large-traders-and-using-volume.html

http://highprobability.blogspot.com/2007/02/feb-23-daily-chart.html

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