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A GREAT DAY TRADING WRITTEN JOURNAL
A GREAT DAY TRADING WRITTEN JOURNAL
9/14/2011
9/14/2011
AT THE START OF THE TRADING DAY, AT 8:30 AM, I SAW THE DOJI ON THE 60 MINUTE CHART, WAS A BIT CONCERNED, ALMOST TOOK THE SHORT ON THE HOURLYS, BUT DIDNT BECAUSE THE OVERNIGHT INVENTORY IS USUALLY ADJUSTED, IRONICALLY THAT WAS A MENTAL ERROR, AS THE ADJUSTMENT WAS TO SELL OFF BALANCING THE LONG OVERNIGHT AS IT WAS THAT WOULD HAVE PROBABLY BEEN THE CASE, NOTE CHART, THE "A" PERIOD NEVER HAD A SHOT AT THE GLOBEX HIGHS--SCROLL DOWN TO THE BOTTOM OF THE PAGE AND NOTE THE FIRST CHART.
AT THE START OF THE TRADING DAY, AT 8:30 AM, I SAW THE DOJI ON THE 60 MINUTE CHART, WAS A BIT CONCERNED, ALMOST TOOK THE SHORT ON THE HOURLYS, BUT DIDNT BECAUSE THE OVERNIGHT INVENTORY IS USUALLY ADJUSTED, IRONICALLY THAT WAS A MENTAL ERROR, AS THE ADJUSTMENT WAS TO SELL OFF BALANCING THE LONG OVERNIGHT AS IT WAS THAT WOULD HAVE PROBABLY BEEN THE CASE, NOTE CHART, THE "A" PERIOD NEVER HAD A SHOT AT THE GLOBEX HIGHS--SCROLL DOWN TO THE BOTTOM OF THE PAGE AND NOTE THE FIRST CHART.
BEFORE THE MARKET WENT BACK THROUGH THE A PERIOD OPENING, I WAS THINKING THAT I MISSED THE TRADE, MORE WORRIED ABOUT THE MISSED ENTRY THEN FOCUSING ON THE ENTRY AS IT PASSED THOUGH THE OPEN, WHICH IS A VERY GOOD TRADE LOCATION MANY TIMES WITH THE REVERSAL IN PROGRESS, THE FOCUS SHOULD HAVE BEEN ON THE 1155-1160 ZONE WHERE WE WERE FAMILIAR WITH THE COMMON LOW LEFT FROM 9/13/2011.
BEFORE THE MARKET WENT BACK THROUGH THE A PERIOD OPENING, I WAS THINKING THAT I MISSED THE TRADE, MORE WORRIED ABOUT THE MISSED ENTRY THEN FOCUSING ON THE ENTRY AS IT PASSED THOUGH THE OPEN, WHICH IS A VERY GOOD TRADE LOCATION MANY TIMES WITH THE REVERSAL IN PROGRESS, THE FOCUS SHOULD HAVE BEEN ON THE 1155-1160 ZONE WHERE WE WERE FAMILIAR WITH THE COMMON LOW LEFT FROM 9/13/2011.
THE FEELING OF VEXATION BLOCKED THE PROCESS OF ENTERING THE TRADE AT REASONABLE PRICE LOCATION, NEAR THE OPEN ON THE WAY OFF THE HIGH IN THE "A" PERIOD. THE LACK OF FOCUS ALSO DID NOT ALLOW US TO GET THE FILL OF 1162.50 LONG ON TAPE, HENCE WE DIDNT GO THROUGH THE PROCESS OF MANAGING THE TRADE LIKE I WOULD HAVE ON THE DAY BASIS, INSTEAD, I WAS TRADING THE SMALLEST TIME FRAME THAT I TRADE ON THE COUNTER ROTATIONS. TRADING BOTH TIME FRAMES AND MANAGING THEM WITH THE USE OF DIFFERENT TACTICS WORKS AS A HEDGE, BUT YOU MUST MANAGE THE DAY TIME FRAME CORRECTLY. TODAY AT THE LOW, FOR SOME REASON I WAS FOCUSED ONLY ON THE SHORTEST TIME FRAME, NOT THE DAILY FRAME, ONLY THE 5 MIN FRAME, EVEN THOUGH BY THAT TIME WE HAD DISCUSSED THE FACT THAT WE DIDNT THINK THAT IT WAS A TREND DAY DOWN. NO DISSONANCE THERE, JUST MENTAL LAZYNESS. A WEARING OUT OF EFFORT BECAME EVIDENT AS THE LEVELS I WAS LOOKING AT DIDNT REWARD MUCH. A LOT OF EFFORT FOR NOT MUCH REWARD IS TAXING THROUGHOUT THE DAY. AS THE LAST MAIN AREA, THE 1180 GAP WAS HIT, THE LAST FEW BULLETS WERE FIRED, NOT MUCH ON THE SHORT FROM THE 80, SO I REVERSED, AND THE FEELING WAS GOOD, RODE A 10 POINT TRADE IN THE LAST HOUR OR SO, THAT LEAD TO A COMFORT ZONE THAT PREVENTED ME FROM ENGAGING THE MARKET IN THE LAST 30 MINUTES ON A FORMATION THAT I WOULD HAVE TAKEN IF I DIDNT WALK AWAY FROM THE DESK. I HAVE BEEN TALKING ABOUT THIS 1193-1198 ZONE FOR DAYS, AND MISSED IT BECAUSE I WAS TIRED, AND FOGGY, AND TALKED MYSELF OUT OF THE TRADE USING THE GLOBEX SESSION AS AN EXCUSE FOR NOT ENTERING, WHEN IN REALITY, IF THE ZONE WAS GOOD, A TRAILING STOP WOULD HAVE BEEN DEPLOYED. INTERESTING!
THE FEELING OF VEXATION BLOCKED THE PROCESS OF ENTERING THE TRADE AT REASONABLE PRICE LOCATION, NEAR THE OPEN ON THE WAY OFF THE HIGH IN THE "A" PERIOD. THE LACK OF FOCUS ALSO DID NOT ALLOW US TO GET THE FILL OF 1162.50 LONG ON TAPE, HENCE WE DIDNT GO THROUGH THE PROCESS OF MANAGING THE TRADE LIKE I WOULD HAVE ON THE DAY BASIS, INSTEAD, I WAS TRADING THE SMALLEST TIME FRAME THAT I TRADE ON THE COUNTER ROTATIONS. TRADING BOTH TIME FRAMES AND MANAGING THEM WITH THE USE OF DIFFERENT TACTICS WORKS AS A HEDGE, BUT YOU MUST MANAGE THE DAY TIME FRAME CORRECTLY. TODAY AT THE LOW, FOR SOME REASON I WAS FOCUSED ONLY ON THE SHORTEST TIME FRAME, NOT THE DAILY FRAME, ONLY THE 5 MIN FRAME, EVEN THOUGH BY THAT TIME WE HAD DISCUSSED THE FACT THAT WE DIDNT THINK THAT IT WAS A TREND DAY DOWN. NO DISSONANCE THERE, JUST MENTAL LAZYNESS. A WEARING OUT OF EFFORT BECAME EVIDENT AS THE LEVELS I WAS LOOKING AT DIDNT REWARD MUCH. A LOT OF EFFORT FOR NOT MUCH REWARD IS TAXING THROUGHOUT THE DAY. AS THE LAST MAIN AREA, THE 1180 GAP WAS HIT, THE LAST FEW BULLETS WERE FIRED, NOT MUCH ON THE SHORT FROM THE 80, SO I REVERSED, AND THE FEELING WAS GOOD, RODE A 10 POINT TRADE IN THE LAST HOUR OR SO, THAT LEAD TO A COMFORT ZONE THAT PREVENTED ME FROM ENGAGING THE MARKET IN THE LAST 30 MINUTES ON A FORMATION THAT I WOULD HAVE TAKEN IF I DIDNT WALK AWAY FROM THE DESK. I HAVE BEEN TALKING ABOUT THIS 1193-1198 ZONE FOR DAYS, AND MISSED IT BECAUSE I WAS TIRED, AND FOGGY, AND TALKED MYSELF OUT OF THE TRADE USING THE GLOBEX SESSION AS AN EXCUSE FOR NOT ENTERING, WHEN IN REALITY, IF THE ZONE WAS GOOD, A TRAILING STOP WOULD HAVE BEEN DEPLOYED. INTERESTING!
9/15
9/15
Today, as is true of the last several days, there are many things in life competing for time. This is a perfect example how when speaking in the past about the process of learning how to trade over years, I have spoken about both the importance of a season where trading simulation is key for preformance metrics, and when it is not recommended to keep track of preformance in a visual database. This is the frame work of todays experience. It is interesting to note that after being away from the desk for two years, and the tactical side of trading for that long, one would logically expect to have many things to work on in that theme when returning. Knowing this, as recorded many times in conversations with others, brings into light the problem of Cognitive Dissonance, hence fustration, but not in the way you would think in the context of trading from a strategical or tactical perspective. The dissonance that is leading to fustration are the figures from a bad day simulating, ahhhhhhh there it is!! There should not be a bad day simulating, because no records are being kept for a specific reason at this time! Why? What benefit is there to create a data base of activity when one is not ready to implement a structured process of breif therapy goals, or strategy or tactics while testing out those approaches in a focused manner? There has to be a time when those things are tested in a database, but not in the begining. That leads to fustration, when in fact it is meaningless in the broader picture. When you have proven to yourselve that you have killed most of the flys in the web of the mind, then it would be better to keep a database of simulated trading when you have combined both strategy and tactics in a general sense, with brief therapy goals in a focused way. Now as you keep simulated data and start to crunch the numbers like I did in 2008, the inclusion of breif therapy goals helps to refince the process, and you can compare month to month the results on your way to live trading. This is the best approach for a few reasons. One is to try different things out, two is to spare yourselve from the pressure of trying to perfect something that has yet to be tried! What good can a database be if the data means little because you dont know what your doing either strategically or tactically? Clear out the flys first, then enjoy a meal from a hungry spiders perspective! Process, Process Process, is so important not to forget. I forgot that over the last days, hence I am taking myself a bit to seriously regarding the simulated results of the last few days regarding short term trading. How does one take two years off from a tactical perspective and jump right back into a market like the ES? The season must be right before simulation takes on the important role that it does. That is a fine line to deal with in the work, but is important. As I type this i am taking trades on the simulator with poor results, mostly due to lack of focus a I compile this post, another perfect example. Very easy to see why there is a time to avoid metal baggage by holding yourselve up to the scrutiny of a database before you are fully ready to do so. I did this in 2008 and it worked well, it gave me the ability to try different things without feeling the pressure of preformance. With all of the pressure of distractions over the last days, yesterday near the close an interesting experience was realized. To set the stage, over the last two days, I had market structure correct in the shorter time frame, I was wrong in the longer time frame, but the shorter time frame analysis was adjusted correctly on the fly. The tactical execution was mediocre though, due to many reasons, most because of a lack of focus and distractions, and not having a plan in place that could take a while to implement. By the end of the day, fustration needed to find an avenue other than a real money account, so I clicked of on the simulator contract after contract listening to that damn busser sound go off over and over like it did all day (driving me nuts, must change that!), and bought the high of the market with 100 contracts just in an effort to change that negative amount of money lost on the simulator. Now considering what I just wrote about, at the time I actually put a stop in place! on a simulator with 100 contracts! Can you believe that! Ironically it was a winning trade! How tragic! Could you imagine someone trading live with a fraction of the experience I have as noted in TAMTA and still subject to this bizzare state of dissonance? WOW! Thanks to Dr. Brett, an underlying tenet is to understand how to coach ones self, and at a minimum that will keep me on the simulator, and after this post, I will not hold my self to a standard that is not possible until both tactics and strategy are worked out. That should eliminate fustration because I have a interesting strategy to be in place in the near future, but not right now, so my focus will not be results oriented yet, but when it is, the brief therapy goals will be in place as a safeguard for mental process. Very interesting few days!
Today, as is true of the last several days, there are many things in life competing for time. This is a perfect example how when speaking in the past about the process of learning how to trade over years, I have spoken about both the importance of a season where trading simulation is key for preformance metrics, and when it is not recommended to keep track of preformance in a visual database. This is the frame work of todays experience. It is interesting to note that after being away from the desk for two years, and the tactical side of trading for that long, one would logically expect to have many things to work on in that theme when returning. Knowing this, as recorded many times in conversations with others, brings into light the problem of Cognitive Dissonance, hence fustration, but not in the way you would think in the context of trading from a strategical or tactical perspective. The dissonance that is leading to fustration are the figures from a bad day simulating, ahhhhhhh there it is!! There should not be a bad day simulating, because no records are being kept for a specific reason at this time! Why? What benefit is there to create a data base of activity when one is not ready to implement a structured process of breif therapy goals, or strategy or tactics while testing out those approaches in a focused manner? There has to be a time when those things are tested in a database, but not in the begining. That leads to fustration, when in fact it is meaningless in the broader picture. When you have proven to yourselve that you have killed most of the flys in the web of the mind, then it would be better to keep a database of simulated trading when you have combined both strategy and tactics in a general sense, with brief therapy goals in a focused way. Now as you keep simulated data and start to crunch the numbers like I did in 2008, the inclusion of breif therapy goals helps to refince the process, and you can compare month to month the results on your way to live trading. This is the best approach for a few reasons. One is to try different things out, two is to spare yourselve from the pressure of trying to perfect something that has yet to be tried! What good can a database be if the data means little because you dont know what your doing either strategically or tactically? Clear out the flys first, then enjoy a meal from a hungry spiders perspective! Process, Process Process, is so important not to forget. I forgot that over the last days, hence I am taking myself a bit to seriously regarding the simulated results of the last few days regarding short term trading. How does one take two years off from a tactical perspective and jump right back into a market like the ES? The season must be right before simulation takes on the important role that it does. That is a fine line to deal with in the work, but is important. As I type this i am taking trades on the simulator with poor results, mostly due to lack of focus a I compile this post, another perfect example. Very easy to see why there is a time to avoid metal baggage by holding yourselve up to the scrutiny of a database before you are fully ready to do so. I did this in 2008 and it worked well, it gave me the ability to try different things without feeling the pressure of preformance. With all of the pressure of distractions over the last days, yesterday near the close an interesting experience was realized. To set the stage, over the last two days, I had market structure correct in the shorter time frame, I was wrong in the longer time frame, but the shorter time frame analysis was adjusted correctly on the fly. The tactical execution was mediocre though, due to many reasons, most because of a lack of focus and distractions, and not having a plan in place that could take a while to implement. By the end of the day, fustration needed to find an avenue other than a real money account, so I clicked of on the simulator contract after contract listening to that damn busser sound go off over and over like it did all day (driving me nuts, must change that!), and bought the high of the market with 100 contracts just in an effort to change that negative amount of money lost on the simulator. Now considering what I just wrote about, at the time I actually put a stop in place! on a simulator with 100 contracts! Can you believe that! Ironically it was a winning trade! How tragic! Could you imagine someone trading live with a fraction of the experience I have as noted in TAMTA and still subject to this bizzare state of dissonance? WOW! Thanks to Dr. Brett, an underlying tenet is to understand how to coach ones self, and at a minimum that will keep me on the simulator, and after this post, I will not hold my self to a standard that is not possible until both tactics and strategy are worked out. That should eliminate fustration because I have a interesting strategy to be in place in the near future, but not right now, so my focus will not be results oriented yet, but when it is, the brief therapy goals will be in place as a safeguard for mental process. Very interesting few days!
9/16
9/16
Today I tried an exercise to assist focusing on the 5 minute chart with drawing tools isolating combinations of bodys in the NYSE tick for comparative purposes. On the chart below, the drawn boxes and red horizontal lines isolates the eyes on segments in the market and lowers the noise of individual price movement. Note second chart at the bottom of the page.
Today I tried an exercise to assist focusing on the 5 minute chart with drawing tools isolating combinations of bodys in the NYSE tick for comparative purposes. On the chart below, the drawn boxes and red horizontal lines isolates the eyes on segments in the market and lowers the noise of individual price movement. Note second chart at the bottom of the page.
One thing that I wanted to observe before I sat down at the desk with real time data recently, was to see the change between focusing on market structure, and tactacilly executing on the smallest time frame like I did in 2007-2008. Over the two years that I was building a house and away from the desk, I discussed daily market structure with others, but did not engage any tactical work. I did however discuss the concept of both, and how they interact. Without the ability to understand structure and develop the abilty to recogize and change ones bias based on the unfolding structural formation on a day basis or a smaller time frame basis, a fundamental tenent for building a strong foundation for trading in all time frames is compromised. On the fly I am able to change outlooks from a premarket bias that frames the market as to what I would expect to see, and make structural adjustments . On the day structure basis, this is working fine. From a tactical basis, not the case yet, but now is not the time to work on all of those details. First, the discipline to focus is the key first. So, overall, the feeling is good, as the process of learning is moving foward. The feeling of progress over the last two years regarding strategical structure is high. The feeling of mental flexibility is high. Additionally the feeling of excitment regarding future projects is high, Here is the kicker, the understanding of a better physical exercise program is on my mind, and I am suffering dissonance. It is knowing the fact of the important role that plays in general health, specifically a tight back, weak core, etc, and can only assist one in the mental focusing necessary in trading, yet knowing this I suffer from dissonance since I have not taken the steps to implement it. Strange considering that I like exercise when I build houses. Certainly a dissonant state of mind. I will be working on this next week as a breif therapy goal. After three years off I realized the last things I was working on was trying to find a time frame to trade that wasnt boring or to stressful like the time I was writing in my journal making huge amounts of points on short term trades. The problem with that approach on a perpetual basis is the amount of chemicals flowing though the body. A mix of both though, looking for a couple of rotations on the day basis, and using the short term account for counter rotations when the signal presents itself, for 2-4 points several times a day, not several times in 5 minutes. This is the frame work that excites me, and will frame my work going forward with a higher degree of focus to facilitate that plan. I am off of the simulator in any serious way until the degree of focus increases. Ovcrall the feeling of progress is high. The process continues....process, process, process.
One thing that I wanted to observe before I sat down at the desk with real time data recently, was to see the change between focusing on market structure, and tactacilly executing on the smallest time frame like I did in 2007-2008. Over the two years that I was building a house and away from the desk, I discussed daily market structure with others, but did not engage any tactical work. I did however discuss the concept of both, and how they interact. Without the ability to understand structure and develop the abilty to recogize and change ones bias based on the unfolding structural formation on a day basis or a smaller time frame basis, a fundamental tenent for building a strong foundation for trading in all time frames is compromised. On the fly I am able to change outlooks from a premarket bias that frames the market as to what I would expect to see, and make structural adjustments . On the day structure basis, this is working fine. From a tactical basis, not the case yet, but now is not the time to work on all of those details. First, the discipline to focus is the key first. So, overall, the feeling is good, as the process of learning is moving foward. The feeling of progress over the last two years regarding strategical structure is high. The feeling of mental flexibility is high. Additionally the feeling of excitment regarding future projects is high, Here is the kicker, the understanding of a better physical exercise program is on my mind, and I am suffering dissonance. It is knowing the fact of the important role that plays in general health, specifically a tight back, weak core, etc, and can only assist one in the mental focusing necessary in trading, yet knowing this I suffer from dissonance since I have not taken the steps to implement it. Strange considering that I like exercise when I build houses. Certainly a dissonant state of mind. I will be working on this next week as a breif therapy goal. After three years off I realized the last things I was working on was trying to find a time frame to trade that wasnt boring or to stressful like the time I was writing in my journal making huge amounts of points on short term trades. The problem with that approach on a perpetual basis is the amount of chemicals flowing though the body. A mix of both though, looking for a couple of rotations on the day basis, and using the short term account for counter rotations when the signal presents itself, for 2-4 points several times a day, not several times in 5 minutes. This is the frame work that excites me, and will frame my work going forward with a higher degree of focus to facilitate that plan. I am off of the simulator in any serious way until the degree of focus increases. Ovcrall the feeling of progress is high. The process continues....process, process, process.
9/21
9/21
A very interesting day in many area's. I wasnt at the desk all day, but during the time I was, I discussed market structure well. I got to the desk at 10:30, lacksadaisical at best. None the less, the thing that hit me first was the small Initial balance 7 or 8 points. 13 points from a major zone I have been looking at and anticipating a sell response zone since we bounced off of the lows of 1130. Over the last two days I discussed with others the nice potential rotation downwards. More than onee this happened in the day time frame for good trade location. The piece of information that I missed, (although I am not geared up to trade, just speak structure), I am not in the habit of making sure of new releases like FOMC etc. If I would have known that, I would have tempered the idea of a continued move lower until the release at 2 pm or so. As it was, before I left the desk, I spoke about a transitional structure that identified a sessation of lower price movement into a more balanced rotation of 5 to 7 points. This was a good time to be away resting as I was occupied with family matters. If you are at the desk for those hours, before a major release, you are wearing yourself out, using up any spare physcological bullets during a dull market, putting oneself at a dissadvantge for the afternoon session regarding the ability to focus and act. After the release of the news, I identified the zone of the lower Octanct of the 3 day profile as a reference for a sell zone if the market got back there on a retest. As was the case it did, and there was no sign of acceptance. Note the third chart at the bottom of the page.
A very interesting day in many area's. I wasnt at the desk all day, but during the time I was, I discussed market structure well. I got to the desk at 10:30, lacksadaisical at best. None the less, the thing that hit me first was the small Initial balance 7 or 8 points. 13 points from a major zone I have been looking at and anticipating a sell response zone since we bounced off of the lows of 1130. Over the last two days I discussed with others the nice potential rotation downwards. More than onee this happened in the day time frame for good trade location. The piece of information that I missed, (although I am not geared up to trade, just speak structure), I am not in the habit of making sure of new releases like FOMC etc. If I would have known that, I would have tempered the idea of a continued move lower until the release at 2 pm or so. As it was, before I left the desk, I spoke about a transitional structure that identified a sessation of lower price movement into a more balanced rotation of 5 to 7 points. This was a good time to be away resting as I was occupied with family matters. If you are at the desk for those hours, before a major release, you are wearing yourself out, using up any spare physcological bullets during a dull market, putting oneself at a dissadvantge for the afternoon session regarding the ability to focus and act. After the release of the news, I identified the zone of the lower Octanct of the 3 day profile as a reference for a sell zone if the market got back there on a retest. As was the case it did, and there was no sign of acceptance. Note the third chart at the bottom of the page.
A very nice move that occured. Interestingly, the structure of the market today was contingent on the 3 day overlay profile, and not other area's that would typically come into play like naked POC's Value area's high and low, etc. It is nice to relax and enjoy strategical concepts while thinking about the future. Specifically tactics and other avenues, maybe options. Process is so complicated to work out the bugs! Focus is a force that is not yet within my grasp, but is no reason not to enjoy and engage important tenents of Auction Market Theory.
A very nice move that occured. Interestingly, the structure of the market today was contingent on the 3 day overlay profile, and not other area's that would typically come into play like naked POC's Value area's high and low, etc. It is nice to relax and enjoy strategical concepts while thinking about the future. Specifically tactics and other avenues, maybe options. Process is so complicated to work out the bugs! Focus is a force that is not yet within my grasp, but is no reason not to enjoy and engage important tenents of Auction Market Theory.
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