Trade plan and Price action review: (Price action) Es opened in value and the buyers stepped in pushing Es up into the 62.50-64.50 resistance level. The econ number was released and Es sold off down to the low of yesterday and buyers were active pushing back up to make new highs on the day. We had a little bit of trending action and a retest of the highs of the day on a buying div into resistance at 1268s. The market ticked off then chopped for a bit then began to break lower. We had a nice retrace back to the VPOC at 1266 and it was all downhill from there. The market had a full rotation to test the lows of the IB and tested below the bigger balance area from the past few days. I had level at 1252.50-1254.00 and buyers were active there pushing ES back up into the days value almost 10 points before closing the session. The morning trading caused a P shape profile and it was likely that the buyers would return the market back into value at some point in the day.
(Trade plan) So as far as my trade plan is concerned I was looking for buyers to be active at the lows of the balance area and they were. The trick was timing the entry to join the move. I had good reaction at my support levels and longs were the right trades to make there. Honestly I was expecting a little more buying to come in earlier. But when the 1268 resistance area held and we ticked off from there it was a red flag that the buyers weren’t strong enough to take the market higher. The buyers ended up being active at the lower end of the range around the 1252s area where we got a bullish reversal off that level.
Trades review: (Hypothetical)
(Actual)
1st trade: Type of Set up: Break trade
(Technical) The market rejected the lows of the balance area and buyers stepped in pretty quickly so i bought 1265 on a break of A period. My plan was to ride the momentum up. But the market hit a wall and stalled out which is when i should have gotten out of the trade. I have to remember that i took the trade for a reason momentum. When it started stalling i should have dumped it. Anyway the market pulled back and i was stopped out for - 6 ticks. It did continue on to my target after going 3 more ticks past my stop.
(Emotional) I think i have been getting a little over confident lately so in a way its good i was stopped out. I think i needed to be humbled a little bit.
(Execution Grade) D I chased a few ticks
(BSO Points) -1.5 points
2st trade: Type of Set up: Break trade.
(Technical) Market topped out at 1367 area resistance and i wasnt around for the short opp. So as the market was trading lower it broke the 1262.75 swing lower and i took a short. I was way early on this and i was anticipating the selloff. We only broke the level by 3 ticks and buyers were waiting on the other side to get long. I was stopped for - 1.75 points on that one.
(Emotional) I was way to eager to get short. There was defiantly fear of missing the trade and that's what made me jump the gun.
(Execution Grade) F I chased the trade and anticipated the break lower.
(BSO Points) -1.75 points
3st trade: Type of Set up: Break trade.
(Technical) The market was selling lower and got short in anticipation of the continued sell off. The market popped against me and luckily i had my stop on the other side of resistance so i stayed in. As soon as the market got back to my entry i bailed for a BE scratch. The market made it to my target but regardless it was a bad entry location on that one.
(Emotional) This was a total impulse trade. I came back to my seat and saw the market going lower and just sold into the move lower. A better entry would have been on the retrace back up into the 1259.25 VPOC If i was looking to sell. It would have been a fast clean 3 point trade. My entry was 1258.50 a point from where i should have gotten in.
(Execution Grade) F i chased it 4 ticks...
(BSO Points) BE
Conclusion of the day and thoughts going forward: For some reason my emotions got the best of me today and it shows in my PnL. The first trade seemed ok because my plan was for the buyers to be active at balance area lows. But with the bad econ release out today maybe longs was a bad idea. Im not sure if i would have sold 1268 area i had outlined on my chart but i wasn't around for that test so it's hard to say. Work is really cramping my trading but i have to stay balanced with work and trading or i will never be able to trade full time. So i have to live with the fear of missing out on a trade and not let it bother me.
BSO Points for the day: - 3.25 points
Winners: 0
Losers: 2
Scratches: 1
Grades for the day:
Following my plans: A I had a bias in the morning and I traded it accordingly. The trade didn’t work and that’s ok.
Following my rules: C I stuck to my MM rules. But I chased a few trades
Emotions in check: D I was chasing a few and jumped in early on al 3 today.
