Monday, March 05, 2007

March 5 daily chart

Well I watched most of the mornings action and placed a few scalp trades. I trailed a stop on 2pt breakout 3 seconds too soon. I'm just glad I was positive today given that I'm not use to the volatility. I saw a relationship between gold and the stock indices today, and also a good divergence trade between ES and ER2 at 11:23pm EST when ES made a new high and ER2 was several points off its high, indicating a more bearish outlook for ER2. My confidence in the current trading environment is not strong enough for my own liking even though I'm making money. I need more practice and time reviewing my recordings. I have been keeping a close eye on XLF and some of its components intraday as a sign for reversals, as I see that there is a strong correlation with these equities when compared to the bonds and the stock indices.
I also need to start placing trades based off my signals on the charts, as they seem to be working. Because I have been having troubling doing so, I may need to just spend a week on the simulator working on executing trades based off my signals instead of taking my usual discretionary trades in which I'm not sure where to place a stop. You see, if I trade off my signals, then I will have a preset stop in place, where as my discretionary trading has the potential for big drawdowns due to my emotions coming into play and telling me to add to the loser because my ego is just to big to take a small loser, because "I KNOW I'M RIGHT". We all know how that story ends, and it aint a pretty one.


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