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Gav's trading blog - Perseverance, Consistency, Confidence

Trading Journal

Dummy day trading #14 16-August-2006:Dow Mini:Long trade closed

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It was another bullish day, and it was indeed a repeat of tuesday’s session. S&P, Dow Mini as well as Nasdaq were having nice dummy set up. Long position of Dow mini was established above 9am(chicago time) candle. It was a very slow trade. Position was closed at 11309, and I have left E-mini Nasdaq position to run instead.That was a wrong exit of Dow. It continued to move up after that. My problem is on Exit a trade (in profit taking way).

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Here is part of the conversation with my trading buddy Vincent when discussing my problem. I have found it very useful.

do your planning in off hour trading not during trading -” plan the trade and then trade the plan”- if you can’t then you need to do one of 2 things or both – paper trade to give you more confidence so you really believe and therefore will stick to it or work on your discipline by using imagery of how you will trade in all situations or WRITE DOWN your stop and then ask yourself how do I answer to this if I override my stop and if I am wrong in overriding my stop

One trade close with 0.49R gain.

Dummy day trading #13 15-August-2006:E-Mini Nasdaq:Long trade closed

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This is the last trade of the day. Long position of E-mini Nasdaq was established above 9am(chicago time) reversal down candle. Trailing stop was moved to break even after 1-R gain. Subseqently, I did not wait for 2-R gain and decided to closed the trade with 1-R profit with the same consideration as Dow mini trade. (Discipline problem again!?!)

Though I manage to close the day in black, I am not happy with my performance in term of trade execution. I was a little bit emotional after the E-mini S&P loss.

15 August 2006
15 August 2006

Dummy day trading #12 15-August-2006:Dow Mini:Long trade closed

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Long position of Dow Mini was established above the 9:00am (chicago time)reversal down candle. I decided to closed the trade at break even point as I do not like to see a doji immediately after the initial entry candle.
Secondly, given the consideration of Core CPI report which is due tomorrow, it might limit the upside of today’s rally.

One trade closed with 0-R gain. I think my broker will be the only person who is pleased with this kinda performance.

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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.

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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.