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Gav's trading blog - Perseverance, Consistency, Confidence

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Dummy day trading #11 15-August-2006:E-mini S&P:Long trade closed

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First trade of the day was a loss, and I was a loser. However, I deserved the loss. It was the result of lack of discipline to follow my trading rules, that is never enter a trade during the first hour of stocks market opening. I was eager to enter Long trade of E-mini S&P given S&P futures/Dow/Nasdaq are having good gain after Core PPI number released.

One trade closed with 1-R loss. Though the R is very small for this trade, the result shows a serious discipline and trading mentality problem.

[photopress:30_min_Emini_SP_trade_closed.JPG,full,pp_image]

TraderFeed: What Trading Teaches Us About Life

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Here are 10 life lessons from learnt from trading – If you have not read Brett Steenbarger's latest posting , you better do. It is just great.

I quote the 10 lessons stated by Brett here.

1) Have a firm stop-loss point for all activities: jobs, relationships, and personal involvements. Successful people are successful because they cut their losing experiences short and ride winning experiences.

2) Diversification works well in life and markets. Multiple, non-correlated sources of fulfillment make it easier to take risks in any one facet of life.

3) In life as in markets, chance truly favors those who are prepared to benefit. Failing to plan truly is planning to fail.

4) Success in trading and life comes from knowing your edge, pressing it when you have the opportunity, and sitting back when that edge is no longer present.

5) Risks and rewards are always proportional. The latter, in life as in markets, requires prudent management of the former.

6) Happiness is the profit we harvest from life. All life's activities should be periodically reviewed for their return on investment.

7) Embrace change: With volatility comes opportunity, as well as danger.

8) All trends and cycles come to an end. Who anticipates the future, profits.

9) The worst decisions, in life and markets, come from extremes: overconfidence and a lack of confidence.

10) A formula for success in life and finance: never hold an investment that you would not be willing to purchase afresh today.

SIMSCI trading journal migration completed

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I have finished moving all my SIMSCI (MSCI Singapore Free Index) futures trading journal from my old blog (clogspot). It is located in SIMSCI category. Another way is reading my June Archive . I started SIMSCI day trading since end of May.

SIMSCI trades are important to me during the development as a futures day trader. It noted my little success, inconsistency, coolness, everything..good or bad. I have experienced winning streak, losing days,over confident, brokerage change and charting service down etc. These experience are just so important to me.

Snapshot of index futures 14-August-2006

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This is the business we have chosen ~ The GodFather, the movie

It was a lousy day of bulls for stocks indices. I did not have any set up to trade. Dow,Nasdaq and S&P were showing the same pattern. To be frank, I was tempted to enter Long position and I was a bit frustrated of not having any long position. The decision to stick to my rules strictly pays off this time.

30-min chart of E-mini Nasdaq 

[photopress:Mini_Nasdaq_30_min_fullday.JPG,full,pp_image]

30-min chart of Dow Mini 

[photopress:Mini_Dow_full_day_closed..JPG,full,pp_image]

Dummy day trading #10 14-August-2006:Mini Gold: Short trade closed

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That was not so nice to start the week with a loss. Short position of GOLD was established below 8:00am (chicago time) reversal up bar. And I was stopped out by the very next candle. Nothing much to write about this trade. The possible mistake might be, the reversal up bar was in fact closed above moving averages. It was, in fact, not my favourite set up condition. Then why did I make the trade?

Secondly, it is necessary to reconsider about trading Mini Gold. Volume is low and spread is sometimes too big to be swallowed. Not a good choice for day trading.

30-min chart of Mini Gold futures 

[photopress:mini_gold_30_min_trade_closed.JPG,full,pp_image]

I decided to call it a day around 1130 am (chicago time) since I do not have desired set up for stocks indices, and oil seems to be making a intraday come back. uh! I am doing nothing when market is having 3-digit gain?!? It does happen.

Vince reminded me the movie 'God Father' : 'This is the business we have chosen'

Ok, 1 trade closed with 1-R loss.

Weekly Economic Calendar :14-August-2006 to 18-August-2006

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We have quite a number of reports coming this week. Here is a quick snapshot of economic calendar for the coming week.

Weekly Economic Calendar

Date ET Release For Consensus Prior

Aug 15

08:30

Core PPI

Jul

0.2%

0.2%

Aug 15

08:30

NY Empire State Index

Aug

15.0

15.6

Aug 15

08:30

PPI

Jul

0.3%

0.5%

Aug 15

09:00

Net Foreign Purchases

Jun

NA

$69.6B

Aug 16

08:30

Building Permits

Jul

1845K

1869K

Aug 16

08:30

Core CPI

Jul

0.3%

0.3%

Aug 16

08:30

CPI

Jul

0.4%

0.2%

Aug 16

08:30

Housing Starts

Jul

1810K

1850K

Aug 16

09:15

Capacity Utilization

Jul

82.6%

82.4%

Aug 16

09:15

Industrial Production

Jul

0.5%

0.8%

Aug 16

10:30

Crude Inventories

08/11

NA

-1114K

Aug 17

08:30

Initial Claims

08/12

NA

319K

Aug 17

10:00

Leading Indicators

Jul

0.1%

0.1%

Aug 17

12:00

Philadelphia Fed

Aug

8.0

6.0

Aug 18

09:50

Mich Sentiment-Prel.

Aug

84.0

84.7