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1/30/15

Know Your Bread & Butter

My bread & butter type of trading!
After over a decade, I have had a enough day trading success that I still believe that there is a chance for myself to trade for living. In my trading (most years) experience, I have also been humbled many times about my lack of ability and emotional/capital limitations are for day trading. My method and appetite for risk dramatically limits the amount of "good" trading opportunities that I feel comfortable taking.

On days where the DJIA moves 100 or 200 plus points, I feel it is my duty to be "in the zone" to take advantage of the these kind of limited opportunities. Markets can go for weeks in choppy trading conditions... coincidentally, where majority of my capital has been lost.
30 Jan 2015
As I am not yet a full time trader, I can only dream about the realities of waiting for the best trades. I expect the day to day waiting to trade will be a boring grind, I'm ok with that as long as I can be consistent with taking the good trade and true to my method and sound money management principals.

30 Jan 2015 | Not my Bread & Butter (B&B) trade. Low ADX keeps me from getting in.
-- I began this post without looking at any charts, under the assumption with today's big loss, there must have been my ideal trading conditions that fit into my method. After reviewing the charts, I was dead wrong on my assumption. I can admit that I easily could have easily been whipped-sawed as I could have shorted right before each retracement,  my stops would have been hit with today's glorious volatility for sure.

 Had to dig up a good example of my Bread & Butter (BNB) conditions. A thing of beauty when it ends with a profit.
Note: I rarely share what my method is, or how it works. Methods are as personal as a tailored suit, maybe after years of trading success, I will consider writing the book, so for now, my method is primarily technical analysis with the use of DM indicator.

Good trading!

4 comments:

  1. One thing that stands out is the "waiting" factor. It can be a killer. And its times like those that really shows a how strong a trading personality one has. To overcome that, I usually keep a book handy to read so I don't end up opening the charts and (over) trade.

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  2. John, a book is a good substitute for trading in slow market conditions. What are you currently reading, fiction, nonfiction?

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  3. I watch videos of hot chicks doing squats or Romanian deadlifts. Its a good distraction -

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"Better Trading Ahead!"