Wednesday, May 25, 2011

End of day review 5-25-11 Wednesday


Trade plan and Price action review: (Price action) Market opened below value and responsive buyers were active off the open. We pushed up into 1314-1316 resistance area and rotated down to the 1310-1312 area where it was the perfect entry for longs to trade back up into the balance area. Especially after the O.D. opening type. The market shot up into the previous day’s range with small pull backs. We consolidated for a while and then broke out testing the previous days highs. Sellers were active at the extremes and sold ES back down into the balance area. The day was still balanced and vpoc shifted up to 1318.75 with bulls in control on the day.
(Trade plan) So my trade plan called for a balanced market today and even though we somewhat trended higher we still balanced in the recent balance area. All we did is rotate to the other side today. This morning I stated that this was a good area for responsive buyers to be active and we could get a little relief/short covering rally back up into the range and that’s exactly what we got. I wish I could have traded it like I planned. Over all my planning is working well and it helps me to form expectations of different scenarios that im looking to play out. My only problem is im rushed in the morning to find my levels and solidify my plan. It’s the reason my trade plan is sometimes fragmented and doesn’t flow.
Trades review: (Hypothetical) See 5 min chart
(Actual)
1st trade: I tried a short at 1317.75 and was looking for a PB of 2 points or so. I knew it was a counter trend trade and I was ok with that. But looking back shorts was a bad idea because of the context. We were at the bottom of the balance area and we had an open drive open type. No reason to get short at all. But honestly I was pissed I missed my 2 long entries in the morning and was looking to trade. I have to remember that its not about placing trades but following a plan and being right with my ideas.
2nd trade: I’m going to print this chart out and staple it to my forehead because it is the perfect example of a amateur trader lol. I bought the freaking high of the day… Enough said lol. Honestly I was bored and I saw the market moving and I jumped in thinking it was going to go up to 27.00 area. The risk was on the long side and I knew it. I need to cut that impulse shit out if I’m ever going to be a professional trader. That not professional behavior so no need for it.
3rd Trade: Another impulse trade. Man im breaking rules left and right here today WTF Mike… Get it together buddy. Unless of course you like sitting under a stair well hiding all day listening to people take a shit 10 times a day and pretending you’re a professional trader than go ahead and keep buying the high of the day and keep on with them impulse trades let’s see how far you can get.
Conclusion of the day and thoughts going forward: So today I did really bad. Not as bad as I have done before but bad enough relative to how I have been doing. I need to stay focused and disciplined. I need to follow my rules and remember that impulse trades will cause me to fail. I missed my 2 long entries, so what, it’s not like there isn’t going to be tomorrow to trade. I found that it was good for me to have this losing day as it helped me to refocus myself and not let my reality get to far away from me. I learn the most from my loser trades and last week I did really well so I didn’t want to lose touch with the fact that I can lose everything I have worked so hard for on any trade if I don’t control my emotions.
Grades:
Following my plans: F-
Following my rules: F-
Trade execution: F-



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