Tuesday, May 15, 2007

May 15 Trade Summary Update $3,129

Well I missed 2 easy setups, 1 being the morning pop (I actually was long at 822 off of a buy stop I placed, but I only took at 6 tick scalp off of it, I didn't think we were going to pop a full 8pts, so I missed the trade due to hesitation and thinking WOW, I'm not chasing this type of volatility, I'll wait for a pullback), and the other setup I missed was when I was typing my my afternoon blog entry (I guess I shouldn't have lost focus). I think I should have made double what I made today, but I got a little less confident as the day progressed because my mind frame switched to capital preservation mode. I did push myself a little in the afternoon and put on trades to get to the 3k mark because I was already over 2k and I still had another 3 hours to go to make that extra 1k. I pretty much just watched the trading into the close, missing another 2 setups, but I didn't want to screw up a good day by trading the last 30 min chopp.

P/L= $3,129

No trade log today, only a summary. (Reason: the trade log is too long, like 3 pages)

Charts Time:
YM/ER2 Divergence

NYSE A/D bearish divergence setup (also NQ A/D more bearish setup, -100 AMEX reversal at 11:45am TOO!)

NYSE A/D trend lines helps keep you on the right side of the trade-


Market Observations-
Today was a good momentum day where adding to winners payed off.
NYSE A/D showed bearish divergence after the morning pop, as well as ER2 and NQ, while on the other hand YM kept going higher (probably due to lots of retail traders covering shorts, not knowing that YM was overvalued relative to the other indices, as it usually is).

Trading thoughts-
I think I might be wasting my time scalping stocks intraday, because I'm much more productive trading ER2. I tried trading 4 other stocks besides AAPL today, but the orders were taking so long to get filled that I canceled all of them. I'm use to trading ER2 where the fills are pretty much instantaneous, and didn't like having to wait for my orders to be filled while the market was moving (AAPL however is much quicker at getting filles and suites my taste compared to the NYSE listed stocks). I did manage to scrap out 100 bucks on AAPL, but during that same time period I was trading AAPL I probably could have made 2-3x as much trading ER2. If I'm going to trade stocks, I think I need to use a scanner to find my stocks and look to put on trades and hold these trades for 30min or longer instead of trying to scalp them, because I'm more likely to get chopped up scalping stocks. So, I should continue to scalp ER2, and look to find stocks that are trending and put short term position trades on these stocks, instead of trying to scalp these stocks (because my time is better spent scalping ER2 and not stocks).


Glenn on 2:33 PM said...

Wow nice day!!

HPT on 2:55 PM said...

Thanks Glenn,
My goal is consistency.

Anonymous said...

Great discipline on preserving capital while being "up".

The AMEX -100 looks like it's in line with A/D, correct? Or, did I miss something? You just use that as a Hard exhaustion opportunity vs. anticipation of a divergent opportunity, correct?

Do key divergences in TICK and A/D just jump out at you on that chart .. or is there another "view" that you've covered before that I may have missed in one of your earlier posts?

Very nice day ... really enjoying seeing these results on pure mkt internals and discretionary trading.

Glenn on 10:11 PM said...

I see you are consisently winning. Any tips on being or working towards consistency?

HPT on 10:55 PM said...

AMEX tick is just like A/D, the pivots are nice to look at too. I really don't use Amex tick. Once I see a direction in the market I get focused on the DOM and just scalp in that direction listening for signals to get out by extreme tick readings or block trades. I'm really only watching ER2, SPY, NYSE AD and TICK, T&S, and the price action on my DOM. I look for momentum moves by glancing at XLE, XLF, and SMH to see if the broad market is participating in the move. NYSE AD and TICK setups do pop out at me. I got a 15-20pt winner on YM from seeing consolidation in NYSE AD and progressively stronger TICK readings, and then pop.

I suggest learning one stock or contract really well. I've been trading ER2 for about the last year and have learned a thing or two. The most important thing is you got to be able to cut your trade without hesistation if it goes against your original plan, and look to reverse your position if you see a valid reason why. Also look to add to winners quickly on breakouts and place profit limit targets out ahead of time and trail your profits, don't hesistate to catch the reversal bounce either.

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