Wednesday, September 26, 2012

main strategy:

1.  Identify overall trend direction.

2.  Look for a  Clear Trendline established by 3 touches.   Short/long the break with tight stop.

  Most of time the market is chopping around -- trying to establish a clear trend line.  Once the Trend Line emerges (look at 5 or 15 min. candles for clarity -- harder to see on 1-min charts) -- then the Market recognizes where the buyers/sellers agree.  The move from there is then based on the Higher Timeframe trend.

3.  Trail stop.

 Could also wait for 5 period to x-over 9 period on sharp moves -- keeps you in the trend.

The move will be sharp and fast.  It's the waiting for the proper set up that is hard.

The 3 touches is the establishing/distribution or accumulation before the break.   It's necessary to fuel to impending move.

4.  The Move often ends with exhaustion -- signalled by

   a)  huge volume candle, often through a whole number (stop orders)
  b) break of the sharp trendline  (green 1-min candles)

Monday, September 17, 2012

Emotions get in the way

I constantly fear losing profits and so take quick profits -- and miss the moves.

 Natural emotions are a trader's enemy.  My plan was good for 2 points but I took a LOSS instead.  I did not follow my plan.

I must override my emotions which cause me to make the same mistake over and over.  The fear of losing a small profit into a loss is simply part of the natural risk.

 I need a way to interrupt my problematic thinking.   Either leaving the room -- something physical to remind me to follow the plan, not the emotions that creep into every trade.

  In general -- being patient with winners is my problem.  The solution is the act of doing nothing.  Why is this so hard?

Wednesday, September 5, 2012

Rangebound Strategy

In a range,

A simple strategy of entering breaks of straight trendlines works best.  It gets you in as early as possible and gets you out as soon as the run hits a support and bounces. 

Each trade only requires a 10tick stop.