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5/5/17

Bad Habits Die Hard!


I am my worst trading enemy. If I stare at a chart long enough, I will be able to find something to trade. If I am speeding up my charts from 15min to 10min, to 5min, to 1min, I am probably in a bad trade or looking for an excuse to get into a bad trade.

Tunnel vision leads to being down  -338 to -1,276 Now I am in recovery mode, hoping to break even and to swear that my over trading days are done... or quit trading altogether.

Traded like a pure amateur today, I ignored the overall trend and exposed myself to massive losses. Now the only thing to do is wait for when I find where I say uncle and cut my losses. That walking away [mentioned earlier today]from the computer never happened, my 1st CL short today was a decent entry, however, I was selling into a very bullish day [duh], still deep in a choppy trade that's going sideways dragging me out to sea.

Losing money is not the issue for me obviously, it's not wanting to miss the big trade. Apparently, I was not content or satisfied with yesterday's win after I watched how far the market sold off without me in it, and it has come back to haunt me in today's trading.

Some changes in my mental approach to trading will have to happen.

I'm ending the day with a loss, and I honestly feel better that I did not dig my way out of today's choppy trade. Going forward, having a memory of making a profit while not trading well will invite the temptation to do it again some day, one bad trade is all it takes to ruin your trading capital. My mentor told me a long time ago that the worst trades are the bad trades that make a profit.

"Better Trading Ahead"

Total # of trades: 13
Percent Profitable: 53.85%
# of winning trades: 7
# of losing trades: 6
# of even trades: 0
Total: -$1,146


CL










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8/30/16

When A Bad Trade Works

Trin Café "a trading for a living blog, inception 2017" was suppose to serve as a easy to read disclaimer of what Trin Café is about, and a reminder to myself that I will not put any capital at risk until 2017.  Well, inception came earlier than expected, I began trading as early as the month of August. 

2017 has been the chosen time frame because I would be able to commit my time from market open to market close. I've said it many times before, to have a chance at day trading successfully, it requires a method that's at least a break even win loss ratio, decent money management principals, and the time to be there in the moment when your method and the market are all aligned.

I rarely post charts on Trin Café anymore because I don't believe charts to be of value, a lot of what it means to trade is to be in the moment, putting your experience and capital at risk will be different for every individual trader. A traders circumstances and risk tolerance is like their own fingerprint, but for what it's worth; I was motivated enough to post this really bad trade that worked.

The below chart is of the YM on August 26th, I was fortunate that this trade worked in my favor. If you remember, August 26th Janet Yellen was speaking. The case can be made that trading on a FOMC day should be avoided, the markets can be very erratic, I'm talking about the kind of violent price swings that knock out the most well placed stops leading a lot of traders to get whipsawed and overtrade... been there done that countless number of times.

However, with access to my mobile trading app, I have had some early trading success. But with success, one of my many trading flaws is ego. I made a few trades that went against me, for a week, I dug a 13% hole into my account. I know very well that drawdowns are apart of trading, but trading on a phone with suspect reception and a shady battery has nothing to do with my method... I will explain that one in another post soon.

With all of that said, I told another trader I would share why I made the trade last Friday, but it was important to share the bigger picture, that day trading is not always easy, technical analysis has merit, but money management and trading psychology is where I intend on focusing  myself and this blog.

Now for the Technical Analysis... (Not that complicated)

I sold 18531 because I saw that price made a lower high, a quick sell with the hope that another lower low would come my way. 

Crazy? Only crazy if I did not immediately place a tight stop at 18549. With each lower low in my favor is what gave me confidence to place my stop from 18549 into a profit stop.

Note: The below chart is from NinjaTrader, my phone app looks nothing like this; another reason I can't trade on my phone any more.


YM Aug 26th 2016


Again, I was fortunate to turn a negative month into a positive month on one trade. Day trading well requires a commitment to consistency.

- Trin



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