Summary:
Finished the day at -$195 (200 share lots of TNA, based on Q's):
The day's trading finished at around -$0.975 per share. Comparing the EOD strategy, I came up with +$2.80 per share:
A huge disconnect. Unbelievable. I have a ways to go.
So what happened?
My decision making skills are lacking. Today was choppy, and it is always easy to see the right thing to do at the end of the day; but truth be told, I hesitated a lot today - second guessing and placing several trades I had no business placing.
When I go thru the chart at EOD, I simply apply the rules candle by candle:
My edge:
Trade from 7 a.m. PST till market close.
Enter trades just after candles form doji’s on or near prior support/resistance (including new h/l), with the wick piercing thru prior candle h/l, positioning against the s/r.
Enter a trade just after a relatively large candle with big volume (in terms of the day’s activity), in the opposite direction of the big candle.
Add after there is a pause in the trend and a signal of continuation. Move the stop when size is added.
Exit when there is a signal in the opposite direction or crazy not too (crazy not to under market context)
It is humbling to realize how difficult it is to carry this out live. The big questions and second guessing today centered around 'big candles' and S/R (e.g., was the 7:00 a.m. green a point of resistance for the 7:25 stall?). The question gets difficult and I hesitate when the doji does not touch the S/R or when the wick forms in the wrong direction (opposite side of S/R). To aid in some quick, non-thinking resolution, I am going to add some definition:
My edge:
Trade from 7 a.m. PST till market close.
Enter trades just after candles form doji’s on or near prior support/resistance (including new h/l), with the wick piercing thru prior candle h/l, with the long wick towards the S/R, and with the distance to S/R being less than the length of the candle, positioning against the S/R.
Enter a trade just after a relatively large candle (with big volume in market direction, and no volume requirements in a mixed market or opposite market direction, in terms of the day's activity), in the opposite direction of the big candle.
Add after there is a pause in the trend and a signal of continuation. Move the stop when size is added.
Exit when there is a signal in the opposite direction or crazy not too (crazy not to under market context)
Trying to keep this as simple as possible, but I need to spell this out as clearly as possible to aid in the decision process. It might be a struggle at first, but I intend on asking those questions before every trade tomorrow. If there is any doubt with respect to the questions, the default answer will be no.
I mean... for crying out loud... a difference of almost $4 per share between live and EOD applied. I have my work cut out for me.
Emotionally today was still a trap. I am beginning to understand the fragile balance in adopting and applying a belief system (self discipline) and the need for a nurturing environment. People need both - you can try to self-discipline yourself all you want to, but if the environment is unhealthy (e.g., the market repeatedly ramming home the fact that you are wrong), I would suggest that it is impossible to maintain a focus on what is healthy and right. We just are not made that way. We need to take pains to protect ourselves. This goes for relationships as well. Trading... what an analogy for life...
Details are posted for my own edification. Trade well.
Details:
amazing how easy it easy to trade end of day, even in replay mode. most likely, because the speed is quicker and you are not constantly re-evaluating.
ReplyDeleteman, you go from not spelling well to busting out words like "edification" which i had to look up, lol.
kill 'em tomorrow. i think the plan sounds solid and i know it works. just need to get it done real time.