Postmortem 22-August-2006

Dear diary,

Another losing day of the week. I thought I am going to write a chunk of stuffs to express my frustration, but after getting some sleep, I forget about what really made me so frustrated. :lol: (Remember, my 'Two losess in row, walk away for good' rule)

There was no problem with trade execution. Everything was done as planned. And I was stopped out as planned as well. Though the Rs are relatively small, it made me think of 2 possible improvements I can make to my trading.

• Though yesterday I mentioned the opening volume analysis suggested by John Carter, I have yet to add it into my 'must do' list. And, again, it seemed to be proving itself yesterday. From the chart available to me, the first 6 bars in 5-min charts were trading below 10,000 contracts. I would be watching it closely for another week.
• Instead of trading E-mini S&P(ES) and mini-sized Dow (YM) at the same time, I will be trading only one of them with bigger position size.This is not an improvement of the system, I am just seeking a easier way to manage my trades. Most of time, if not everytime, ES and YM are moving in a highly similar fashion.

So far, dummy trading yields positive expectancy and profit for me. However, I am looking for another or couple of setups to fill my trading tool box. Is it possible to make a living by trading only one setup? I know the answer, do you?

To keep track of the effectiveness of my stop loss, I decided to record down the market direction at the end of the day after I got stopped out.

E-mini S&P : Long stopped, market down. Correctly stopped. Mini-sized Dow: Long stopped, market down. Correctly stoped