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Showing posts from May, 2017

Becoming A Better Trader Can Make You A Better Person

In the world of trading, it's natural for a trader to have a healthy amount of confidence, in some cases, an over inflated ego, we are only human. It's understood by most people that an ego can become out of control to where it hinders our decision-making ability while simultaneous preventing us from reaching our full potential.

Susan Krauss Whitbourne Ph.D. wrote
an interesting post titled It’s a Fine Line Between Narcissism and Egocentrism that was posted on website Psychology Today
She listed five pointers of knowing the dangers and corrective actions.
1. Make an honest assessment of your egocentric behaviors.

2. Check out how other people feel.

3. Build up your inner sense of self.

4. Squelch your imaginary audience.

5. Practice counter-egocentrism.

You can read the full article here.
 "Deficiency motivation doesn't work. It will lead to a life-long pursuit of try to fix me. Learn to appreciate what you have and where and who you are"
- Wayne Dyer

Enjoy The Memorial Day Holiday

Leisure Time I would guess that most people who attempt to day trade for a living do so with the idea of being able to generate enough income for a lifestyle of enjoying time with friends and family and some routine leisure time. No offense to the traders who stay locked away in their dungeon, or office sweating in their lucky t-shirt while the market refuses to bend to their will. I’ve been that guy, so I don't feel bad about the characterization. FYI, I do not have a lucky shirt, but my comfortable office space can become a dungeon, feeling trapped, unable to walk away from a congested market looking to force a trade.

Today's watchlist was mostly sideways except for corn futures (ZC) and the ten-year note futures (ZN). As I type this, I was able to move my ZC position into a profit stop. This will be a short post, I have a scheduled haircut today in preparation for Memorial Day Weekend, we will be spending some quality time with family and friends.  After the haircut, I nee…

Today Was A Good Trading Day

Starts In The MindI really had better than a good day, and I didn't make any trades. I have been that guy so many times before where I would find myself in a trade I wish I could take back. Because I pride myself on not being a quitter, just one bad trade is never enough (sarcasm). Today I woke up with a confidence I have not had a for a while; I'm trusting in my consistent technical analysis and mental approach to my trading. My routine mentioned in another post includes a little journal writing before getting started with my day, I review my method, prepare my charts… and squeeze a bit of office fitness into the day. I admit the office fitness has been lacking, need to get back at it.
Nothing To Trade It was a sideways day for the majority of my watchlists, it was clear to me early that making a trade was not going to be in the cards for me. Price traded in a tight range, the same kind of range I have found myself trying to justify for so many years. I claim to be a trend t…

Committed To Better Day Trading Win Or Lose

Today was a good day! As I typed this, my position was down 10pts, my execution was as planned. I'm claiming today as a good day win or lose because I am very confident that I will be executing my trading plan/method as intended (always room for improvement). I will not and can not blame the market if the CL trade does not work, or anyone else, I accept the fact that the best trades that meet all the criteria will not be profitable 100% of the time, or even 50% depending on the market conditions.

An excerpt from my introspective journaling
"Take pride in the execution.
Take pride in my resolve.
My self-worth and value are not based on if this trade works or fails.
Committed to zero whipsaw trades
."Iranian elections are taking place today, could this be impacting the market today, maybe today was a day better not traded? If the trade works, would I still have all these same questions or would I just sit on my high horse and marvel at my technical analysis skills? 


Notice all…

Consistent Trading Success Is Not By Accident

Back On The Wagon For Now...

For the traders who are serious about making enough money to consider trading for a living, luck, and chance is not a strategy for long-term trading success. Phrases such as a trader's edge, money management, and my personal favorite consistency can be read in most every how to guide to trading your own money to financial freedom. These words handed down from old trading wisdom can become so overused, a trader can easily become numb to their meaning and purpose.

D.r. Alexander Elder, the author of Trading For A Living, titled a chapter in his book "Trading Lessons From AA". In this chapter, he provides an interesting analogy to how a member of Alcoholics Anonymous (AA) can stay sober for a few days, and then inevitably fall off the wagon into drunken behavior once again, same as a trader struggles to adhere to a consistent mindset and trading strategy that would prevent them from repeated trading mistakes... lessons learned that are revisited …

Trading (CL) on A EIA Petroleum Status Report Day

I felt really good about today, I didn't have a clue about the direction CL would go after the EIA Petroleum Status Report was released, did not want my bias to cloud my judgment. I was confident in my preparation before the trade as you can see on the chart. I  highlighted the 1st hour of the market open and the area of congestion, made a few quick trades, the volatility took out my tight "profit stop", with each trade, my stop was hit quickly. as I type this, I am tempted to get in again, maybe CL will reach R2?

I'm posting this chart early because I will be shutting down all charts and market data to ensure I am not going to be participating any longer in this market... with fewer oil supplies, it would be easy to conclude that a trader should just be long CL and disregard using a stop because this market is bullish... maybe? However, when maybe enters into my trading strategy, I might as well go to the casino... or play the lottery (think I'll go out today a…

Are You As Good A Loser As You Are A Winner? - Update

Despite the loss, I felt very good about my patience and entry into the market, I followed my routine to the letter. Just because the trade fit my criteria does not mean it will be successful, cognitively as traders we understand this; to physically be OK with a loss is the challenge some of the best traders struggle with every day. I'm taking pride in the process, putting less emphasis on the outcomes... the theory is, consistently trading well will produce more favorable outcomes i.e. a profit.

Instrument: CL Jun'17
Lot Size: 1
Total # of trades: 2
Percent Profitable: 50%
# of winning trades: 1
# of losing trades: 1
# of even trades: 0
P&L Total: - $166

"Trading for a living is not about how well you win, it's has more to do with how well you lose."

Update:

I felt bad taking the 2nd trade until I realized my error in determining where support and resistance were really at. In the past I have been basing S&R based on the 1st hour of the trading day... ma…

How And Why Technical Analysis Fails

Getting Technical 
For those who have been following TRIN Café over the years know that I have put a lof of emphasis on using technical chart patterns to guide my trading. If you are a beginner trader or have years of experience with technical analysis, I wanted to illustrate how and why the popular trend line in technical analysis can be misused and potentially dangerous to your trading capital. The purpose of technical analysis is to be able to determine the direction of future price, most of us are looking to identify a trend in our perspective trading time frame of choice. Trading your own money is a thrill in the beginning, but when you are trading for an income, all the thrill needs to be removed from the equation. 
If you find yourself in a trade and your heart is beating faster, it's probably a bad trade. The not so secret to avoiding bad trades is by first identifying the trend in your time frame. In the below chart, the time frame is a 5 minute candlestick chart. The tre…

How A Daily Journal Can Save You Money Trading In The Stock Market

A lot of day traders including myself use a blog to express their trading experience as a form of self-help, a form of review and self-reflection of the trading day in an effort to improve our self's and our trading. However, there are aspects of our lives that may be affecting how we think and act; bottled in our minds if we know it or not. Some days we feel motivated, and positive about our future, "life is good". And then we all have those days where we would rather just be alone with our own thoughts to try and figure it all out.
Tim Ferris author of "The 4 Hour Work Week" wrote here a good description about the importance of using a journal, he provides (his) two very simple reasons for doing so below.
1. I’m trying to figure things out, and this might help.
2. I’m just caging my monkey mind on paper so I can get on with my F#$@! day.
I especially like reason number two, if trading success has been a challenge, it's probably safe to say that you have d…

CL Trading Results 5/10/17

Today's trading was as planned, avoided the chop, was aware of the EIA Natural Gas Report that was released at 10:30 this morning. Now the work of managing my emotions of regret begins, CL continued reaching new highs after I closed my position. What is more important than "leaving money on the table"? Having a consistent frame of thought and action. Allowing negative or positive emotions to cloud our judgment can lead to costly bad habits... i.e. over trading.

The breakeven trade was trader error, I entered the position without using my Ninja Trader ATM stop strategy. I was not going to just wing it and "trust myself" to choose a good stop so I closed it and reentered with my stop set.

"Better Trading Ahead!"

Lot Size: 1
CL: +$221
Total # of trades: 2
Percent Profitable: 50%
# of winning trades: 1
# of losing trades: 0
# of even trades: 1
Total: +$221





Better Trading Ahead! 5/9/17

"Better Trading Ahead!" is the theme here I am drilling into my psyche.

I did some deep introspective thinking about my trading, the learning never stops. I  learned that I was seeking instant gratification from my trading success, the hard work of being patient and waiting for my trading criteria did not factor into this powerful emotion.

Trading well for a loss is better than trading poorly for a profit... take a minute to think about that.
I do believe that if I trade well consistently, I will be able to compound my wins. But what is more important than how well I win, it's how well I lose...

Losses are a part of trading, we all know that, but do we ever embrace "a good loss". I'm talking about the kind of loss that took place in a trade that met all your criteria, and by chance, price stopped you out for a minimum loss or small gain?

See below chart, for example of a good loss imho. Notice the highlighted area of congestion, I made my trade just outside…

Are We There Yet?

Ever feel like you almost have your trading all figured out? Well, I highlighted the area of chop/congestion in yellow early before the market opened, I contemplated not trading at all today while the price was in the highlighted area. But then I saw CL price move up at 9:25 am giving me a reason to pay attention to a possible trade. 

This headline might have been the cause for CL to jump up again at 10:23 am Oil rebounds in choppy trade as Kuwait signals progress on output cut extension, as quickly as I entered the trade, my stop was hit just as fast. In classic fashion, I don't want to miss the trade, I am in another and another CL trade.

The last trade that I am in is working, for now, CL price is testing previous lows, but it is still in the highlighted area of congestion. I'm using a very generous profit stop, "could've" closed my position to get back more than half of what was lost, but I am choosing to hang on this trade with the "hope" the congest…

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, hopingto 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 sati…

Avoid Trading In The Chop: Update (Did it myself)

I felt like taking the time this morning to show a chart that appears to be nothing but chop to me (As I type). Please keep in mind that what one trader sees as chop, may be a buying or selling opportunity for another. Time will tell, at the end of the day, I will post the YM chart to see how the day ends. As for me, I will keep the powder dry until next week.

I'm still learning that news is not the deciding factor on how I will trade.US economy added 211,000 jobs in April; dollar rises. The jobs headline would indicate a monster bullish day right? Well maybe it will be, but as of now, it's (YM) sideways, not the kind of price action I want to be stuck in. Avoid the chop.

It's Friday, I will enjoy the lifestyle of trading for a living today.

"Better Trading Ahead" Not today.








CL Trade Analysis

I made a profit today trading CL, but I honestly had to work a lot harder at it than I wanted to. Not the kind of trading I say I do not want to engage in. As a trend trader, it's difficult for me not to get tunnel vision when I think I see a trend in the chart. Take a look at the chart for yourself, I see a descending triangle begging me to short it, notice how many times I traded today... I was about to go into another shoud've, would've', could've rant, like how CL "could" keep selling off without me riding it down. But I have to remind myself that trading is a lifestyle for me. Make a profit and move on with my day.
As I wrap up this post, CL has sold off more without me in it... I'm grateful I can walk away with a profit and not a huge loss.
Thanks to those who have followed the blog and have reached out with support.
Lot Size: 1/2
CL: +$373

Update: Forgot to mention the quick YM trade that I hopped out of for a win. 
Another trade that falls into t…

One And Done Trading: CL

Trading Perspective

Today I felt like I regained my trading perspective, emotionally I feel I have regained confidence in my technical analysis to the point, I do not feel the need to chase the market, not for out of fear of being wrong, but by acknowledging that the market is choppy. Choppy conditions make for tough trading. If the trading day appears to be choppy just the slightest, I am mentally training myself to move on with my day without risking any capital.

The chart below is an example of how my money management works. I sold CL 47.85, began with 10pt stop, as the trade began to work in my favor, I quickly moved my stop to a profitable position, also referred to as a "profit stop". A profit stop allows your position to work while simultaneously locking in a profit.

In the below CL chart below, my profit stop locked in only a profit of fifteen bucks... take a look at how far the market when against my original short of 47.85. [Pause]

As I was typing out my thoughts, …

Todays Trading Summary: YM/CL/ EXEL Option

I'm ending my day with a small profit, but I clearly over traded today. It's a small win for me that I decided not to trade anymore today.
Full disclosure: I also trade options, when my daytrading is not going well, trading options gives me the opportunity to take some time off from the daily grind.
Correction
I'm ending this day with a loss. Took another CL trade that went aginst me and hit my stop. Began the day with a quick decent profit, kept trading out of fear of not wanting to miss the big monster trade I have in my mind.
Easy Trading
The kind of trading that is quick and easy. I will have to mentally prepare myself for only taking easy trades... How do you know it's an easy trade or not you ask? 
Well, if you have taken the time to trade what you see based on good technicals, you should be able to get into a profitable trade that's working fairly quickly. The hard part is not to get in the way of a trade that is working... see CL chart below for example. If you h…