End of Day Journal (11-30-2010)

Summary:

Live trading on 50 shares:

Today was wracked by some frustration; set off mostly by the fact that I was at the bottom of the $4 craziness on NFLX and I bailed early. Why did I bail? Because I had been reading up on Al Brooks all morning and kept glancing at the 5 minute chart... pfft.

I have decided that I simply cannot do that any more. Mr. Brooks has a lot of good info and I will keep reading it, but I am going to stick to trying to apply the general concepts to range charts for now. This is working and I need to stick with it.

On that note - I decided to look at the end of day range charts from the 'perfect trade' perspective: I am going to review and analyze the charts to look for clues as to successful and failed entries.

Brooks mentions something along the lines of 'focusing on the details because it is often the smallest details that lead to the best trades'- and he is detailed. Incredibly so. This has inspired me to prod and poke the range charts for whatever they can afford to yield. Reading over his information has highlighted the differences between 5 minute candles and range bars. Time adds an entirely different dimension (pfft...).

When I started reviewing today's range charts, I realized that all I have to look at are price and volume - LOL! My first thought was that there was no way that I could get the information from range bars that Brooks reads from 5 minute candles. But then I realized that he had to start somewhere as well; at one time he may have thought it impossible to find what he needed in 5 minute candles. This might be a stretch - but if I wanted to keep things as simple as possible - time may be an unnecessary complication. But... heh, what do I know? I am willing to give it a go for a couple of weeks to see what I can find.

In fact, I did find several things to help with tomorrow's entries: not trading against the prior 45 bar; avoiding non-trending stocks (realizing that I will likely not get start of trend entries often), and a re-enforcement of the 'stutter volume' on big momo moves. Feel free to call out anything you might notice as well.

Too tired to review/edit this post, so please forgive the grammatical/spelling errors. Will try to get around to it tomorrow.

Trade well.

Details:

NFLX:

Check out the volume on the HOD and the subsequent swing low (below).This happens over and over again on the momo moves. I didn't trade the top or the bottom because it was out of plan - and right now I am all about staying in plan. But it sure was tempting...

 CMG

 Here is the swing on CMG; not as clean on the top and the bottom was indistinguishable.

FSLR

 AMZN

TNA

I mentioned on this chart that I thought a lower range would produce the volume stutter on the highs, but I checked it down to a range 10 and it did not.

End of Day Journal (11-29-2010)

Summary:

Live trading on 50 shares:

Rather disappointing day, first day live again, and after a great week of paper trades last week, not much happened today. I only had 6 entries, with 4 of those initiated before the lunch hour. All of them showed profit before getting stopped except for AMZN. I wanted to call today some pretty funky price action, but every day is funky.

Last trade on NFLX saw > +$1.30, but I had some internet connectivity issues and NT got gummed up on the reconnection so I missed the HOD. Hard telling if I would of exited, but I didn't have the opportunity.

I added a new section - I would like to start reviewing price action on the 5 minute candles. This first attempt is very noobish, but taking a stab at it. Crazy Monday schedule kept me busy all afternoon and I am too tired to look at all three charts tonight.

Trade well

Details:

AAPL

AMZN

NFLX

5-Minute Review

I am going to try and start analyzing price action on the 5 minute candles (ala Brooks). Again, going to continue to trade on the outlined approach, but the more I read about Brooks the mroe I am convinced that that is the trading/analytical style I want to develop. Typical Monday schedule so I didn't get very far on this. And it is completely noobie, I don't have the book yet and am just using what I have gleaned thus far. The hope is to eventually make it my own.

AAPL

AMZN

NFLX

End of Day Journal (11-24-2010)

Summary:

Paper trading on 50 share lots:

One out of plan trade - first long on NFLX. Again - a 'blind' heeding the 'indicator' (both MA's were blue and price crossing shorter) so I went long assuming the corrective wave would be the start of a new trend and save the day. Heh.

This is what I was afraid of - a silly reliance on a trade signal without taking the entire picture into account. Anyone could of looked at the chart and seen NFLX was headed down for the day. The fact that I realized this though later in the day was enlightening and a step forward.

Morning had all the action and I managed to sit on my hands for most of the rest of the day. I missed two entries on AAPL, the first at 10:00 due to some technical glitches.  I was out early on CREE's big move, but within plan so no worries.

With respect to allowing myself to continue to grow my expertise in trading concepts (price and wave action for now) and yet refrain from bouncing from new trading plan to new trading plan, I have realized that this plan will allow me to bring new ideas into the entry/exit decision making process - I can trade within the MA context but bring and allow new ideas/expertise to be a factor as well; in fact, perhaps an even more important factor than the 'indicator'. The long on NFLX is a great example.

Truth be told - whenever I pull up a 5-minute chart, my first reaction is almost always 'Wow, this is beautiful. And simple.' Do I miss them? Funky.

Happy turkey day!

Trade well.

Details:

Nearly all the wave action was drawn live today. Yellow is dominant trend (with blue-ish being wave 1) and the red-ish lines are the corrective patterns.

AAPL

Late EOD action. Should of known everyone would leave early for the holiday.

AMZN

CREE

Early exit, but in plan.

NFLX

OPEN

I didn't trade OPEN, I could of had the continuation but I don't think I was paying much attention at the time. Pretty wave action.

End of Day Journal (11-23-2010)

Summary:

Paper trading on 50 share lots today:

A great morning and a losing afternoon...

And I was relatively surprised to find out at EOD review that I was trading out of plan this afternoon. I traded several corrective waves expecting in the primary trend direction (expecting continuation)... For some reason I completely forgot to draw waves during the afternoon session. The lines would of kept me out of a lot of stops.

Thinking back over the day I want to attribute the afternoon trading to a couple of things. First - I saw plenty of long opportunities and my approach was not allowing me to go long. Rather than carefully considering what was happening I jumped in on which ever stock was allowing me trade - by only looking at the indicator (price crossing the short MA with color). This cost me 1/3 of the day's profits.

Anyhoo - I had 3 stocks with $2/share gains at one point today. It began to get very difficult when they started coming back. I managed to get decent exits on them, but the emotions were just under the surface. Funky.

I am reading and finding out a lot about price action (via Al Brooks) and wave patterns. I am sorely tempted to switch up my system again.... The bane and downfall of new traders - an inability to stick with a decent and workable plan?

The thing is - today I missed several opportunities, and I hated it (the short opportunity on both NFLX's  and CRM's crazy morning runs and long opportunities on them and both and CMG). I had to sit on my hands. In some ways I think this is actually good for me, i.e., forcing me to be disciplined and patient. But at the same time I seem to be biding my time and trading 'any' opportunity that my 'indicator' (price over the MA) says I am allowed to; kind of like a blind reliance on the system rather than on myself.

Input sought, welcome, and appreciated.

Anyhoo - I think for now I will stick with the plan (and try to trade in the plan). I think it has the potential to be very profitable. But I plan to keep studying price action (Al Brooks does a great job and should have a new edition of his book coming out (thanks to Fozz for that link)) and wave patterns.

Price action is fascinating. Honestly, my approach to the charts has been mostly about taking/making a guess - and calling it intuitive, I have had a very hard time describing where/when/who/what. I would see people write about 'early shorts are setting stops here' and wonder what in the world they were talking about. I would try to puzzle it out but did nothing other than confuse myself. Is this what I would do? How do I know someone else is doing this? Why are there early longs/shorts if they know they are early? How do I know that they are early and right rather than early and wrong? Etc., etc.  From the little that I have read, Al manages to do a great job of describing the story behind the price. The reviews that I have read would suggest that the book is not very well written - and he himself readily admits as much. I am looking forward to the second edition.

Trade well!

Details:

I siwtched up the way that I draw the waves and am now placing the lines right on the respective highs and lows. Again, I drew sets on the morning's entries, but somehow forgot to on the afternoons. When the pattern failed to materialize (usually the 5th wave) I assumed something other than trend was going on and waited for the next breakout for the first leg. Amazing how this works out.

AAPL

 AMZN

 CF

CMG

FFIV

NFLX

UPRO

End of Day Journal (11-22-2010)

Summary:

Paper trading on 50 share lots today:

I decided to paper trade today rather than go live. I think I will tomorrow as well. Maybe finish out the short holiday week.

I did an excellent job of staying in plan, but I was out on two trades: POT and AMZN. POT was pretty low on the ATR range (and the first entry was a mis-type) and AMZN happened to have just finished up a nice 5 wave pattern which I didn't notice until I had entered. I exited both trades immediately after I realized what I had done and both for small gains.

Unfortunately I missed big $3 entries CMG, CRM, and AMZN, a $4 move on FFIV and a $5 move on AAPL; all on the 1:15-ish spot... I happened to be out strolling and enjoying the AZ winter sunshine at the time. Would of been an incredible day.

I am allowed to keep saying that until I actually have to trade the moves... =)

I spent some of the day messing around with the setup - I know - crazy right? I hated missing out and was trying to find some way to get in on the afternoon uptick. I need to avoid that syndrome like the plague.

Trade well.

Details:

Only posting the 45's - it has been a typical Monday schedule - and I am very tired. 

AMZN

CMG

CRM

FFIV

 NFLX

POT