Friday, March 16, 2007

March 16 Trade summary





I'm done early today because I have to leave for work in 30min and I don't like to have to manage positions when I have a deadline to be at in a short time period, it just adds more stress to trying to rush your trades, and has cost me money in the past.
Trade summary:
I initially warmed up trading on the simulator, trading the CPI number, and then later I traded the open to get a feel for price action. I then logged on to my real account when I saw a trade setup. I started shorting YM and ER2 when they were near there VAH and also when ZN was near its VAL, and also the time was 7:15-7:25 (A key reversal time), I took partial profits on ER2 and held 1 contract for my target. Both trades were initially good for about 2-3 tick scalps, but instead I held out through a little heat for my intended target.

Bad things today:
1.Shouldn't have added to ym short near NYSE TICK low. I should have only added unless the price was lower and the NYSE TICK was near its high area.
2.Should have taken partial profits on YM before the trade reversed on me, when considering the amount of time the trade was taking to hit my target.(trade should have been in the black by 8pts in 3-6min, however it only went 5pts at the most with very choppy price action before reversing).
2.Should have waited for block trade signals on ER2 before entering first position.

Good things today:
1.Added to ER2 trade near HOD when block trade signal appeared.
2.Took partial profits and left 1 contract open on ER2 for my profit target.
3.Didn't get really stressed from the amount of heat taken.

Observations:
1.The idea of putting on a short trade when ZN is trading at its VAL and ES is trading at its VAH, or vice versa may be a good strategy on "range days", and particularly when placed around "key reversal times".

2.I traded the CPI number on the simulator this morning, and it seemed very easy to see where the reversals were by watching the relationship and volume between ES and ZN.However, ER2 did not follow very well to what ES was doing in relation to ZN. ER2 lacked volume and was much choppier. When there is high volatility during premarket or during regular market hours, ES has the best liquidity and seems to trade in a direct motion from point A to point B with little chop, where as ER2 sometimes chops around before reaching the same destination point.

Look for a weekly recap and a Video this weekend!

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