I made a execution mistake today.
Short position was established at 1120am. It was a slow start. Market started sold off after 1130am. However, I was being a Chicken. Instead of letting the profit run, I covered the position with only 1 R gain. That’s a shame. Poor plan execution. It should have been a multiple Rs day. And I am feeling frustration now. So I am gonna call it a day. 🙁 [Read more…] about Dummy day trading #47 25-Jan-2007: NQ short trade closed
It was a strong morning. And, NQ was running without me. Staying flat for 3 days in a row. uhm… I saw a trend coming, however, I just couldn’t find my entry setup. Well, forget it. There are opportunities in the market day in and day out, but they are invisible to me now as I have not learned to recognize them. It takes a pretty long time and effort to build recognition plan and skills.
I received emails asking for information about futures trading. I have yet [Read more…] about Readings: Basic Options
Options expiration Friday. I might be trading , I am not sure. I would like to see a strong trending opening before deciding if I am going to jump in. While there seems to be a strong interest in Futures trading in blogsphere, I am ,in fact, start looking at options trading. 😉 I am looking at short term options trading on stocks. Of course, my focus is still in Futures. I am trying to study some basis now. John from theessentialoftrading.com did a nice video on stock options trading. check it out.
Tradestation releases build 8.2. I am still downloading.
OK, back to market. I am looking at daily chart of Nasdaq. We have some pull backs in Nasdaq as expected. Now I am interested in watching if moving average is supporting it. I am staying neutral. Premarket is showing flat. We had 3 down days consecutively.Today might be a choppy or flat day. Maybe it will form a nice dummy spots in daily chart? 60 minutes shows me negative pictures and sellers are still dominating.
I might instead spend time reading options stuffs and play around with Tradestation.
[photopress:NQ60premarket.jpg,thumb,alignleft][photopress:cashmarket18Jan2007.jpg,thumb,alignleft]
I was talking to a colleague from China (He is not a trader though), he mentioned to me , in China, colors of price bars are opposite to what we are reading here. Meaning, RED for a up bar, BLUE/BLACK for a down bar. You know, Asian, especially chinese, Red represents lucky, prosperity and …every that is good. Uhm…So, I guess I gonna change all my candlesticks color in the Chinese way. LOL.
Long position was established around 1135am, after watching higher lows were formed in 5-min chart, and NQ seems to be supported by yesterday’s low and moving average. Entry order was triggered by a spike of price and I was stopped with 1 R loss at the next bar.
Trade summary
One trade closed with 1 R loss.
[photopress:NQ5minClosed.jpg,full,pp_image]
In contrast to my morning analysis, I saw a new downtrend cycle was formed. Short position of NQ futures was established at 1030am (Chicago time). It was a nice candle pattern and resisted by down trending moving average. I moved my stop to break even after position was gaining 2.5-R. However, market reversed with a strong big candle. I was stopped out.
Trade summary:
One trade closed with 0 R (after commission)
[photopress:NQ5mintradeclosed.jpg,full,pp_image]
2nd trade of the day. Long position was established at 1215pm. That was the first pull back of new trend cycle. After getting stopped out in the first trade, I was extra patient to wait for a quality entry. Here it is. Small R. I trailed stop according to my plan and get stopped out with 3-R gain.
Trade summary:
One trade closed with 3-R gain.
This is the last trade of the week. I call it a day now.
