This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
Not me, the markets got pummeled! I paper-traded my variation of a system inspired by 00NR7’s system as I said yesterday that I would. There were so many Briefing gappers that I didn’t even use my Prophet.net scan. I did make some changes to my plans, though. I watched 5, 10 and 15 minute charts for the setups, and I took setups that weren’t strictly hammers, and I also faded some gaps rather than trading the direction of the gap. I took 4 trades, 3 wins and 1 loss, for a total of +5.2R for the day. I met my +5R goal in one day! Awesome.
Thanks to everyone who commented on my rant from yesterday. I was humbled and blown away by all the support I received, and it really helped. I know this is only one day, but I plan to stick with it and keep my focus, so I’m optimistic about the future. It kind of proves to me that I do have some skills; I was just out of whack for the last two weeks. This pace and style of trading seems to fit my personality much better than shooting from the hip 17 times a day. Maybe someday I’ll get there, but I don’t need to start there!
The charts of my “trades” are below, with the usual orange=entry, red=stop, light blue=partial, blue=exit format:
CHINA 5′ Short Continuation
MGG 5′ Long Gap Fade
PSUN 15′ Short Gap Fade (I got whipsawed out, but the trade did eventually go in my intended direction. I entered based on a break from an inside NR7 candle)
AAPL 10′ Long Gap Fade
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
September 6th, 2007 at 3:18 pm
nice day!
September 6th, 2007 at 4:14 pm
Nice comeback - very focused trading.
September 6th, 2007 at 7:38 pm
On one hand, you made some paper money today, which is great. On the other hand, yesterday you said: “These are my entry signals, and no other shall be considered.” But, today you used different charts, different candle shapes, and different trade directions than you outlined yesterday. In fact, none of your 4 trades match your plan from yesterday. I’m also noting that OONR7 couldn’t find any trades to take today, much less 4.
So…. is it that you could write up a new and improved system that’s sensible and also makes these trades “legal”, or is it that you are really still making things up as you go? Not that I’m knocking that approach… you can see on my videos that I have a collection of ad-hoc non-systematic ideas behind all of my trades. But, since you said “If I follow this plan, my trading is correct” yesterday, then I would say all of your trades today were incorrect.
I don’t mean to sound harsh either today or yesterday. As long as you’re making money, plenty of people are going to cheer no matter how you did it. I thought I’d be that pesky other voice. :-) Just be careful out there! It’s not a race.
September 7th, 2007 at 12:32 am
prospectus… gotta agree with Richard. I didn’t see a good entry for the way I trade on those stocks. Not saying they’re not good entries, but according to my plan, nothing would’ve triggered. It’s taken me a long time to trade the way I trade today and I have the blog to kinda of shorten that time for other traders new to my system. Sounds like you’re itching to get back to trading… but I would give it a few weeks… really understand the system or maybe you want to tweak to make it your own. Whatever the case, don’t jump back in just to jump back in.
September 7th, 2007 at 4:12 am
@Richard: This is the reason that I consider you to be one of the best trading mentors I have. You always offer a well thought out opposing voice that challenges my thoughts. I don’t feel you’re harsh at all, and I appreciate your comments very much. Everything you said is right on target.
The only thing I would say in my “defense” is that over the last two weeks I’ve been chasing things, interspersed with a few loose setups. Yesterday, I didn’t really trade 00NR7’s system. I imposed some structure in the form of fib retracements and went by my feel of whether the entry time was right, as long as it was above the right fib level. This also kept me looking in the correct direction instead of letting me get on the wrong side of the market as I have lately. Maybe that range structure is all I really needed. But it’s way too early to tell for sure. I am so impulsive! I go from ready to quit to ready to trade in a day. I need to slow down–it’s not a race, as you said. This impulsiveness is my biggest flaw as a trader. I can see that. I better slay that dragon, or it will eat my account again.
@00NR7: You are right as well. I didn’t really trade your system. I did my own thing, inspired by some elements of your trading. Also, it wasn’t truly a system at all, more like discretionary trading within some guidelines. I’ll do more work to really understand my system and methodology and flesh it out. I shouldn’t jump back in too soon. There’s that impulsiveness again. Thank you for your feedback, and for taking the time to help. Everyone has been so kind in taking concern for me, and I’m very moved. It’s impacted me more than you know. Thank you.
I think that before I work any more on my system, I need to do an honest inventory of myself first, as HCPG, Richard, Pinoy and everybody else has said. I’ll do that and post it soon.
September 7th, 2007 at 5:04 am
if it’s any consolation whatsoever… I was probably in the same mindset you’re in right now at some point in my fairly short trading career. You can work through this, just be patient.
September 10th, 2007 at 4:18 pm
[...] what the direction is, or where to enter–I let the fibs guide me. I traded similar setups to my paper-trades on Thursday. I’m surprised that I’m doing well with AAPL, as I have tended to get whipsawed pretty [...]