Results so far…6 trading-day-result

February 7, 2009 in Uncategorized

28/1 – 1 loss
30/1 – 1 loss, 2 wins
2/2 – 1 loss, 1 win
4/2 – 1 loss
5/2 – 4 losses, 2 wins
6/2 – 4 losses, 4 wins

So, 12 losses, 11 wins…this 2 weeks have been a mess. Most of the days, I would classify it as “Untradable”, because my trading setup hasn’t give me the clear opportunity.

Also, I was very distracted – trading while watching TV, doing other stuff, etc. Shit…I have to change.

Other than distractions, I realize that on some days, the TF will go with very clean charts while on some days, it just doesn’t behave right. Whenever there’s an important annoucement like Fed or Non-Farm, it doesn’t behave right.

Some people like to trade those events, but somehow, I just have difficulty trading them, because my setup doesn’t allow that.

However, certain observations that I’ve established in the past 6 months still holds: The trend day & range day.

A trend day simply means a clear, easy, trending day. Any sort of indicators, be it lagging or leading, will be able to work out because the direction is clear.

A range day, which I started practising trading in the beginning, is a day when you can throw away your lagging indicators and some leading indicators, because the price will move based on supply and demand levels.

I made another observation of range days: They are filled with traps. Traps to trick the novice trader.

One example is the breakout. As a novice will know from books, a flag, wedge pattern preceding a breakout is a good entry. In range days, there are plenty of failed breakouts, especially at key levels. That is why, as rule, never assume it’s a breakout until it’s completely “broken out”.

Left: Trend day Right: Range day

Some people can look at these 2 charts and say that they are both very tradable. Yeah right. That’s because once you’ve seen the whole thing in retrospect, you know where all the big moves all and probably justify your entries according to prior the moves, even though there’s no reason why.

I’ll just carry on my current setup till the end of march, and I will see whether it can give me the 6:4 winning percentage that I want.