Tuesday, April 26, 2005
4/26/05 AM
The bond were in an uptrend... above most of the MA's and the stoch went low and crossed. I went long, with the trend the the bonds proceeded to fall about 3/4 a point! Oh well, I followed my rules. It happens.
The eminis were just setting up a trade for me, stochs went high and were getting ready to cross over and then the contract shut down. Dead, gone. CME stopped trading this morning and it might be a while before it's up again.
This little pause was very valuable for me. I went back and looked at my really bad trades from last week. Wed and Thurs. I looked at my entrys and realized that I haven't been following my rules at all. On Wed for example, I had one good sell entry at 10:15. Stochs went high and crossed while we were below the 200. A good sell point and profitable. The market then went below all the MA's and then the stochs crossed on the low side signaling a buy... but we were below all the MA's! I spend the rest of the day buying in a down market. Not only that but the Trin was up all day....
I have to realize that there are days that if I don't get any good signals I should just not trade. It's OK, not to trade... in fact it will save me lots of money if I don't on those days. Option 2 is to use some sort of trend following system on those days when we are above or below the MA's
The chart for Thursday (4/21) was similar but in the opposite direction. 10:30 (pivot point) there was a good entry on the long side, stochs went low/crossed while were above the 200 MA. Good trade if I ever saw one. Then the market rallied above all the MA's, the stochs went high/crossed and I was selling into a bull market all day! It was above the MA's (all of them!) and I still went short several times! I have learned my lesson on this. It was these days that made my week a loser! High tick counts plus Trin was going lower.
I've learned something from this. I will honor the simple rules of MA's and Stochs.
Learn it, know it, love it, live it...
Trader X
PS. Rockstar... we can both learn from this. We will stay on the right side of the market this way.
The eminis were just setting up a trade for me, stochs went high and were getting ready to cross over and then the contract shut down. Dead, gone. CME stopped trading this morning and it might be a while before it's up again.
This little pause was very valuable for me. I went back and looked at my really bad trades from last week. Wed and Thurs. I looked at my entrys and realized that I haven't been following my rules at all. On Wed for example, I had one good sell entry at 10:15. Stochs went high and crossed while we were below the 200. A good sell point and profitable. The market then went below all the MA's and then the stochs crossed on the low side signaling a buy... but we were below all the MA's! I spend the rest of the day buying in a down market. Not only that but the Trin was up all day....
I have to realize that there are days that if I don't get any good signals I should just not trade. It's OK, not to trade... in fact it will save me lots of money if I don't on those days. Option 2 is to use some sort of trend following system on those days when we are above or below the MA's
The chart for Thursday (4/21) was similar but in the opposite direction. 10:30 (pivot point) there was a good entry on the long side, stochs went low/crossed while were above the 200 MA. Good trade if I ever saw one. Then the market rallied above all the MA's, the stochs went high/crossed and I was selling into a bull market all day! It was above the MA's (all of them!) and I still went short several times! I have learned my lesson on this. It was these days that made my week a loser! High tick counts plus Trin was going lower.
I've learned something from this. I will honor the simple rules of MA's and Stochs.
Learn it, know it, love it, live it...
Trader X
PS. Rockstar... we can both learn from this. We will stay on the right side of the market this way.
