First before I get into my trading today, I wanted to share how I trade YM futures. A few readers wonder what my rules or methods were so I thought I write them down - (especially for Jules who I know only trades futures).
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I use three methods and two of them are written up on the first chart. I either trade the news where I buy or sell the break out of the range caused by the news. Second - I buy or sell a 9/14/50 exp moving avg crossover with chart formation and third I buy or sell break out of trading ranges usually the inter day plus over nite range - a simple chart method.
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I mainly use two contracts. I will only add to winners and most of the time I will use a 20 tick stop. I move it to break even after gaining 15 ticks. If the trade does not start working within 5 to 10 minutes, I try to scratch it. I usually trade off of a 89 tick chart but I look at the signals on a 1 minutes chart to confirm. If the 1 minute is giving clearer signals, I may just use that.
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If you look at the above charts, using the 1 minute chart would have produced great profits today. Too bad my head was not screwed on straight. My first futures trade was on the 8:30 news. Instead of selling of the break down of the range, I gave myself an extra 10 ticks because of recently being whipsawed too often. I got filled on the bottom tick for my short. It took a while to get stopped but I did.
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My second trade was using the crossover method. I was looking at the 89 tick chart and not using the other to confirm the direction of the trade. Dummy me. This got me in earlier than the 1 minute and so I sat on a trade for nearly 8 minutes where most of the time, I was in the red. I gave up and scratched the trade. If I used the 1 minutes, I would have stayed long enough to have this be a great trade. Also if I did not loss on the first trade, I might have stayed longer. I have that problem that I trade differently when I am in a hole than when I am not.
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My third futures trade should have been the long near the bottom of the day. I did not take it because I was too pissed at myself.
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I did trade some stocks but the trades are not worth talking. I will say I blew them too.
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So this in my 3rd losing day in a row and I really need to clear my head for tomorrow. This is why I wrote what I wrote today. Instead of mainly stating how much I fucked up - I wrote up my method to show myself that my system can work only if I remember to follow the rules.
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The numbers:
Stocks: gross +78 net +43 shares 7000
Stock futures: gross -180 net -198 contracts 8
Forex: none - I got to start swing trading this stuff.
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There was no big mouth stocks today.
3 comments:
:-) The old me would ask why you want to move to breakeven when you could have just grabbed that 15 ticks and get out?
depending on the market and the how quicky the trade got there - I may or may not
Hi Mr. Denarii,
Been found your excellent blog before while still researching how to become a trader. As I trek my own self-learning, I found your blog suits my own way of trading. And I just wanna' ask if you don't mind please, how do you look/search/find your "stocks to trade"? I am just curious, since I just do my own research and can't afford those kind of expensive newsletters out there. Thanks a lot for whatever you may advice.
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