Friday, December 07, 2007

Dec 7 $7 on 87c




Laugh all you want at the P/L, I'm just glad I'm breakeven for the day.
Traded terribly today,due to over leverage, and not using tight enough stops at volatility spikes. I'm thankful to even be in the black today, because I went well over my loss limits due to my own intuition telling me otherwise(thinking ZN would reverse sharply and ES would reverse accordingly). It did work out, but I should have kept size down and exited at price extremes.

Net P/L= $7 on 87c (terrible) I'm just glad I'm out and done for the day

Overall, the market is trading on really light volume and is dangerous IMO. ES just held 1510 for the longest time while XLF and C were rolling over, finally I got my break for my short when ZN popped, and I got back to break even for the day. Something that made trading very difficult today, was seeing BOND FUTURES TANK HARD, as a result of the mortgage interest rate bailout and bond traders selling. ZN just kept going down, with the 10yr hitting November lows. BOND TICKER has been giving a good summary of the action-
11:08 am - Taking Hits: Prices have been held lower as the market took its 1st hit on the better-than-expected payrolls report, although the much hyped ADP reports 189K guess was well off the mark, while mixed back end revisions also weighed. An uptick in inflation concerns is also hitting the longer end, taking the 10-yrs off to the worst levels since mid-Nov while the shorter maturities have only hit Nov 30 levels. Traders report very light action & the typical drop-off in options volitility levels -post-payrolls. The dollar is still mostly lower against the majors but still bettering the yen as the currency suffers in carry trade.

6 comments:

Anything-Goes on 12:33 AM said...

what do you use for entries? I see volume by price and a really squished candelstick charts.. i thought u had a diffrent system based on bollinger bands?

HPT on 12:45 AM said...

I don't post my real charts that I use for trading, because I'm developing an ATS and I don't want to reveal my indicators the system is using. Maybe in the future I'll post some trading videos once I get my new computer up an running. However, you are on the right path. Think bollinger bands,volume, and correlations. On a day like today, using volume profile analysis and shorting the VAH and buying the VAL was the best trade strategy.

Anything-Goes on 1:26 AM said...

oh I see.. if it works out for you do share with us and maybe we can all give you a certain % of the wins.. hehe. BTW, about DT and my avatar, it's all good.. they say even bad publicity is good publicity..
.. I think your left link panel on Homepage has disappeard or moved down can't see the day trader blogroll..

HPT on 8:12 AM said...

I was re-arranging the blog adding some ads last night, everything should be back to normal. Your right about bad publicity, in fact, I think bad publicity is even more effect at getting people to check out other links. Your blogs is under Day Traders.

Denarii on 10:25 AM said...

HPT- how many contracts per trade?

HPT on 12:48 PM said...

Denarii,
Normally I trade 1-3 contracts. However, My first trade was a 10 lot on this setup, and it went 1.3pts my way, but some how I screwed myself out of $1,300 by using bad trade placement. I had a lot of confidence in my first setup, but I screwed up the exit by having trailing stops placed to close and short stops(to add) placed to close to my core position, so I screwed up with position sizing and not excepting that my trade setup' TIME OPPORTUNITY had passed.
Normally I start out with 1 contract, and only add up to a max size of 3 contracts on a losing position that is within 1.4-2pts of the original position, on winning positions I may go up to 10 contracts, but I normally always start out with 1 contract and add or subtract based on whats happening. Friday I screwed up.

I think I should reduce my leverage and keep contract size under 3 contracts, because, although I have good signals, I'm screwing up on the position sizing and adding contracts to my core position.This is the toughest part of trading, and that's why I need to stick to a set contract size. I feel kinda GUILTY answering your question, but this only shows that I'm not following my own rules, and that I shouldn't be trading until I'm ready to stick to my rules on position sizing. Thanks for asking the question. I've been contemplating getting buttontrader, so that I can restrict my position sizing, but I'm still being a dumbass and worrying about the monthly fee. Maybe I'll grow some balls and buy the software, because I have had the problem of overleverage since I began trading.
I'll either blowup again, buy the software and prevent blowups, or maybe I'll follow my own rules for once in my trading career.

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