'Trading is a process of observing the market's action until such a time you can find and form trading ideas and get involved.'**

Friday, September 30, 2011

An "edge" in trading? Just find one idea.

With the market is on a tight bearish range, finding an edge in the market is hard to find or impossible to look for. That's how the market right now especially with so many unpredictable news that is coming from Europe. Lots of traders are having a hard time coping with the extreme volatility that the market projects daily.

But the edge right now is to stay on the sidelines until the market stabilizes. Unless traders don't know their edge, you don't really have an edge at all.

An "edge" in trading lingo is sometimes or most of the time is being misinterpreted (mostly) by newer traders. As they say in trading, if you don't know your edge, you don't have one or none at all.

An edge in trading has lots of meaning. A few of them is how you trade, what instrument will you trade, how far you understand how the market works, how much capital are you going to trade, how you implement your trading knowledge, how you trade your plan (if you have a plan), how do you place your stops, how do you find a good location to put a trade, how much indicators are you going to use and how are you going to relate them, how you read the markets and what timeframe are you going to trade, and a lot more. These are just a few of the items I mentioned.

One edge that you need is to read trading and investing books and learn more about the markets in real time. Spend years reading while building your capital, in that way you can have some kind of idea how you approach the market.

Rational thinking is also important in trading and or investing. If you are not used to losing amount of money and don't have any patience in learning and getting knowledge about the market, it's impossible or it may be hard to get involve in the market.

Passion in the market is also an important factor as a trader. Love what you do. If you don't love what you do, even in real life, if you are not passionate about in what you are doing, success is not possible or it will be hard to accomplish.

Most great traders and investors love what they do, they eat...breath...and sleep...in the the market. It's like an obsession to them. It's their job. They treat trading as a business to pay their bills.

But once you learn how the market works, the rewards are astronomical. But few are succeeding in the market because of lack discipline, don't know "their self", don't know their edge, they trade without a plan or don't have any idea at all.

Trading is about having your own understanding about the markets, one idea is all you need, master it and you're on your way.

The market remains on a bearish range as can be seen from the daily chart.

It will take a long while with a positive conviction from all participants to turn around the market.

Unless a miracle could take place, the market will stay idle from 10500 to 11500 (YM) range.

Today's trading range was a short trade.

The bears made a lot of opportunities in the market.






Left my trading table after I set up my sell limit and it triggers for a gain of 60 points...my observation was right on the trade...
Moving sell stop to break even, 11000...
Putting sell limit at 11060...
Will test the market on a long side at 11000 with sell stop at 10960...
Buy stop got triggered...lost 25 points...not really a good day to trade...
I can see YM is forming a head and shoulder pattern...a sign that the market is going down...
Sell short at 10975 with buy stop at 11000...
The bulls made a tremendous comeback to counter the charging bears...it's a see saw battle between the antagonists...looks like the bulls are on the winning side at this moment...still on the sidelines watching the duel...
It's the HFT are taking over the market...
Bulls are charging...will stay on the sidelines...
Exited the trade 10950...lost 20 points...not a good location to put a trade...
It's a very volatile open, wider stop should be applied in this kind of market...
Sell short at 10930 with buy stop at 10960...
The market is descending as can be seen from this 5-min. chart.

It might be a sideways move all the way to the close and/or a possible short trade.

Either way is the trend for the day.

Long trade might not be workable.

Let's see how it goes.

Thursday, September 29, 2011

The bulls made the last effort to conquer the rallying bears before the close.

It made a dramatic "V" pattern forming a victory for the bulls.

Though it did not finish/reach the previous high, but at least the market has shown a significant response.

Checking back the market two hours before the closing seems like yesterday.

It went down the hill after it surge in the open.

Bears are out there roaring in pandemonium.

Let's see if the bulls can fight back before the close.



Done for the day...90 points gain total...heading to the driving range to practice some swing drive...see you tomorrow fellow traders...
Target buy point at 11100 got hit for a gain of 50 points...trading on both sides is the right way to trade the market at this time...either the market is going up or going down you can make a trade...that's how trading is all about...
I can see it is forming a head and shoulder pattern from my 15, 10, 5 and 3 min. charts...looking for a buy point at 11100...
This time I will test the market and will put a short trade at 11145 with buy stop at 11160...
Traded out at 11190...40 points gain...
Looking for 11200 run...possible selling point...
Bought YM at 11150 with stop at 11120...
The market (YM) is recovering as can be seen from this 5-min. chart.

Looks like the leaders in Europe are finding solutions with the financial problem out there especially the Greeks and or in Germany.

Let's see if it stabilizes, but I guess it's going to be a volatile open today.

Been reading a lot of trading news from reliable sources and most are getting chopped due to the unpredictable movements in the market.

The market is always driven by the news.

The market is now controlled by the HFT traders, and its going to be a while that the investors will takeover.

Most are on the sidelines watching the market do its (dancing) thing.



Wednesday, September 28, 2011

The market (YM) went down the hill today.

Whenever it tries to jump vertically, it goes down deeper, dropping him further until it looses his strength.



A "pork" choppy market today as shown from this 5-min. chart...

Exited the trade at 11190, gain of 50 points...
YM is surging...moving stop to break even, 11140...targeting sell limit to 11200...
The market is basing between 11090 and 11150...

Get back at 11140 with stop at 11110...
Traded out at 11220, it drops suddenly, just gain 30 points...the market bows out suddenly...
Reducing my limit sell to just 11250...to much high for the 11300, it's too "vertical" for a short range...
Moving stop to break even...11190...
Put sell limit at 11300...
Bought YM at 11190 with stop at 11150...
See how the market behaves when traders explore any opportunities?

No matter how you analyze the market based from its current state of unpredictable directions, any kind of advance mathematical formulas, in my mind it is just a waste of research.

That's how I can size up the market.

There is no exact entry or exit price to trade the market, unless you do it by yourself.

The market is a self-understanding endeavor, to each is own to say the least.

There is no one who can teach you/us how to make money.

Because when the market is open everybody is struggling to make their own.

It's important to study the market based from self-understanding.

Market is a self/individual work, not necessarily relying from others.

Making your own trades based from your understanding is the best way to get involve in the market.


After the market got axed yesterday, it starts to bounce up as can be shown from this 5-min. chart from the overnight trading time.

It's just a typical profit taking operation by the 'short termers' in trading of what had happened yesterday.

It's another trading opportunity again for today.

Let's see what's going to happen...





Tuesday, September 27, 2011

The market (YM) went up climbing the mountain only to get tired and went on losing its sanity and just jump to the cliff with his head first.

That's how the market behaves today, very unpredictable.

It formed like an axe!

Lots of long traders got axed today...

Was not able to update my real time trading posts due to tight trading schedule.

My trade got stopped at 11250 and my entry was at 11180 for a gain of 70 points.

Was not able to met my limit sell at 11300.

It drops after it reach 11290, 10 points shy away from 11300.

Moving sell limit to 11300...
Putting sell limit at 11290...
Bought YM again at 11180...stop at 11150...
Stop got hit, sell limit not met, gain 20 points...
Putting sell limit at 11250...
Stop move to 11180, it is surging right now...
Bought YM at 11160 for a long trade with stop at 11140...
The market (YM) continues its surge while posting this.

I can see it might stall after the open and will stay idle or sideways from thereon.

But I'm not predicting, but that's how I can sense the way it moves as of this moment.

My focus for my trading is the YM futures, maybe some are wondering.

YM futures are traded almost 24/7, just an information for the new ones.

Anyway, I might just watch today and see how the market behaves.

It might be hard to day trade today, volatility remains a big concern.

It came to my mind yesterday to put a swing trade because of the "initial pulse" of the market.

Had you position yesterday in the mid trading day (YM, 10800) and exit today  (11170) before the regular open, your net is a sure 370 points x $5.00 = $1,840.00 for just 1 contract.

Enough for a week job?

That how trading is profitable, if you know what you are doing!







The market (YM Futures) is rising as shown from this 5-min. chart.

The market can be traded today on the long side, and can possibly enter after a pullback from the open.

The bears are covering right now...



Monday, September 26, 2011

The market (YM) made a nice move today. It pullback from the open as I mentioned from my previous post.

Actually it made two pullbacks, the second one was the powerful.

It went up till the end of the trading day.

As mentioned from my other post, Mr. Market will rise up from the sickness.

It will come back anyway, no matter how the technicians/gurus can glorify their analysis.

Mr. Market will be there to give opportunities.

It's all up to traders/investors to exploit the offers.

Exited at 10860, gain of 140 points...
Move stop to 10800...
I am incline to move my limit sell 10900 till the end of trading day...move stop to 10740...
Will move sell limit to 10850 and the stop to break even...
Putting sell limit at 10820...
Will get back at 10720 with stop at 10690...
Trade failed, stop got hit, loss 35 points...
Putting sell limit at 10840...
Bought YM at 10775 with a stop at 10740 for a long trade...
The market is gaining ground as can be seen from this 5-min. chart of YM futures.

Can make a long trade today after a pullback from the open.

That maybe possible because the market is being pummelled the last two or three days or so.

Mr. Market seems ready to fight back.



Saturday, September 24, 2011

Lots of market technical opinions/ideas proliferate regarding the market lately but all of what you read are not that concrete matter.

Because the market is unpredictable, nobody knows where the market goes.

Anything that you read about the market technical opinions are not that helpful anyway.

Just absorb whatever you can read and form your own opinion from whatever information you can gather.

It is not that important to know everything about how the market indicators tells about, but how you understand the market how it behaves.

It is in reading the markets is what is all about.

Trading the markets is about having your own ideas and own understanding.

Listening to others is an exercise in futility.

Friday, September 23, 2011

A pork chop trading...

The market was so choppy today as shown from the 5-min. chart and the daily chart too.

It will be a long way to go to convince the market to get its bullish traction.

But I guess if you are a long term investor, I mean if you have a lot of capital to invest sitting out there or parking under your pillow, this is the time to buy...buy...buy...as booyah always say.

I don't think the market will sink further, given the market is already immune to to its HIV disease, Human Intervention Virus(es).

All the kinds of market diseases had already experienced, but Mr. Market is always there fighting to come back and rise from sickness.

Mr. Market will always be there, you cannot beat him anyway.

If so, there will be no life in this planet, isn't it?

So what's the fuss is all about, who cares the market if falling, it will go up anyway.

Just watch him, it will come back.

In the meantime keep learning how to do trading, when the market becomes easy, it will be easy to make money?

That depends on how you approach trading, that's why discipline is part of learning.






Was not able to post some trading ideas and thoughts the past two days or so due to problem on my internet connection, AT&T was not able to fixed my internet the past week.

I just use my own way how to connect/speed up my connection.

The market is on a sell off mode since the Fed meeting, nothing worthwhile came out in their meeting.

Market sentiments remain on wait and see attitude, unless there is a positive outlook on the economy which I doubt there can be, the market will be on a sideways.

Traders love the market especially the HFT, they can steal money in an instant.

That's why the value investors are in quandary, their money are being steal/stole? in a few seconds.

Whatever you learned in the market about fundamentals, at this time of the market, it doesn't worked.

It's a traders world! Times are changing, if others believe in the history, this time is different.

The market is in a different state, it is in a  state of shock.

Tuesday, September 20, 2011

YM futures surge (around 11300) at 10:00 am. and stay idle at 11450 only to drop where it surge into the close.

Lack of follow through.

Most participants got scared with the on-going Fed meeting and run for cover.

Bears are in the lead again.

Let see by tomorrow what's the outcome.




Let your profits run?...

That's the common wisdom being preach by most great traders.

But for not quite seasoned traders who are still learning the ropes in trading, that can be hard to distinguish/implement.

First, there is what you call "euphoria".

Especially for newer traders, whenever a trade showing positive result without any target exit plan, they are bailing out too soon/early.

Suddenly after getting out, you will be surprised the price keeps going up.

That's all common to all traders, especially those who are trading without a plan.

But there are some problems why traders bail out too early which differs to each individual.

It all depends on how you deal with it and training your brain with the market psychology.

Reading the markets is one trait that cannot be ignored about.

Lack of capital is another reason, since if you are not used to losing, there is a tendency that whenever you see a green amount in your P/L, you are prone to closing a trade.

That can be considered "greed" in trading.

In sum, what I emphasized is the "fear and greed" which is a common subject in trading.



The market surge to new high ahead from the Fed meeting.

Traded YM at 11350 and exited at 11400 for a gain of 50 points.

As I mentioned earlier, the market is on a bullish trend and can be traded after the pullback.

Bears are in control...exited at 11330...lost 20 points...
Bought YM at 11350 with stop at 11300...
Some thoughts about trading.

In trading, it is not important (in my opinion) to know everything.

You just have to learn (or listen) and find in your own way how the markets really works and from there implement or practice in actual trading what ideas you had.

It takes time, but if you persist and have the goals to succeed, nothing is impossible.

There are many ways to get involve in the market, you just have to find simple idea(s) that works for you.

In fact, one idea is enough, you just have to master it and tweak it as you go along.

But you have to do a lot of reading and educate yourself about the market, but that will come easily while you are in the market.

Skills is the most important, practicing the skills and knowledge about the market is the key to successful trading.

And based from studies and as mentioned from Malcolm Gladwell's "Outliers" book, it takes 10,000 hours of practicing your skills to master your field.

That's why commitment and patience is important in any endeavor.
The market's (YM) daily chart shows a bullish candle and from the Globex market at this time, it is roaring up.

A bullish trading market for today is possible, though it might pullback a little bit after the open.

Let's just observe and find good location to get involve in the market.

Monday, September 19, 2011

Like what I've mentioned from my last post, the market (YM) might pop up before the close.

As can be seen from this 5-min. chart, it really pops before the market close.

The bears losses their ground.

The daily chart shows a bullish candle, let see by tomorrow if it will sustain the bullish traction.

Though the market is in the bear side, I can see that in the short term a bullish scenario is unfolding.

I might not post actual trade scenario in the coming days due to tight trading schedule.

It takes a lot of pressure showing real time trades when there are some trades that are being manage.

Will just post some trading ideas/analysis from time to time.


The market drops in the open and a selling pressure significantly follow through.

But the bears are quite very careful after that waiting for the sentiment or some pulse from the economic views/news especially from the overseas, the Greek problem.

Right now the market is just a waiting game or what might call the "directionless".

But who knows it might pop up later before the close.

I traded early and got chopped off.

Was early to put on a trade, I forgot to watch myself...my left brain did not act the way my right
brain thinks...

That's the problem in trading psychology...if you are not thinking rationally...you will trade impulsively...

Good thing I calm down a little bit and was able to analyze the market and made a good trade enough to cover the costs...

That's what trading is all about...watch yourself and think rationally...
Target sell limit got hit for a gain of 60 points...
Moving sell limit at 11260...
Moving the stop to break-even at 11200 and putting sell limit target at 11250...
Bought at 11200 again with stop at 11180...
The market lack conviction on the part of the buyers...got stopped to break even...
Moving the stop to 11200 to break even...
Putting target sell limit at 11250...
Bought again at 11200 with stop at 11180...
The bears are really resilient...got stopped again for a loss of 30 points...
Buy low at 11210...with stop at 11180...
The bears are in control...
Stop got hit for a loss of 20 points...just testing the market...

Bought YM at 11270 with stop at 11250...
The market (YM Futures) is dropping....

Sunday, September 18, 2011

The market is on a range mode from this daily chart. Might see some volatility come Monday opening for some news coming from the Europe and the Asian markets.

Also from the Fed or other economic calendar news.

But for traders, any news that are forthcoming is a welcome development because that is where the opportunity knocks.

React to the news and not anticipate as well as be defensive all the time is the right thing to do.

Expect the market to be choppy, but there is a tendency to rally depending on the sentiment of the participants especially the big institutions.

Be watchful and observant traders...just form your trading ideas with the market movement and get involved...



Trading is a process

It takes a lot of time to learn how to become a real trader.

There are no shortcuts. It takes a lot of learning years.

From reading tons of trading and investing books, surfing the net, reading blogs, attending seminars, and sometimes falling prey for some expensive promising subscriptions is the first step.

Other than that, the confusion how you want to be, a trader (ie. John Paulson, Livermore, Baruch, and others) or a Warren Buffet, Peter Lynch style kind of investor.

As a trader, there is what you call the personality traits that needs to be considered.

There are what you call the short term and the long term or the intermediate form of trading.

It depends about how to find your own personality, about who you are (know yourself).

Finding your own personality is the second step to be a trader, other than learning what trading is all about.

Approach trading as a business or a job, not expecting first to make a killing (make money) in the market.

Becoming a trader is like a doctor, an engineer or a lawyer.

Practicing your skills or mastering yourself in your specialized field takes time, patience, commitment, dedication and other self-help determination.

Friday, September 16, 2011

Mr. Market, YM, made a dramatic move before the open, only to make a sell off after an hour or so.

Friday's profit taking is the usual mode of operation, nothing's new with that.

Though Mr. Market is still on a roll since Monday, seems it might loose its momentum come next week as far as my observation looks like.

From this 5-min. chart, I shorted Mr. Market from the top (see the double top), and made a +$250.00 gain from it.

Per technical and pattern observations, double top formation is a signal for the bears.

Also, a long trade is possible after the "W" formation between 10:00 am. and 12:00 noon.

Notice the two long legged doji" candle?...it made a dramatic upside after the pullback.

In trading, observing the market movement is the only way to make a good trade.

See you next Monday fellow traders, have a nice weekend and I hope I was able to help you make $$$...


Shorting at the top is the right trade to make especially its Friday Options expiration...


Target short trade was met, 50 points gain, +$250.00 profit...
Need to move back stop buy to original at 11420...
Moving the stop buy at 11400 to break even...
Putting target buy at 11350...
Stop buy at 11430...
This time I will short YM at 11400...
The market, YM, might trade in a range mode...

Hard lessons in trading

Trading is a grueling endeavor. It will forced you to shed tears when losing your hard earned money in a split seconds that will take you years or possibly never recover it.

Especially if you are not well capitalized and don't have the means to fund your account, that's the hard part.

But with the right motivation and mindset not to give up will give you the boost to learn more and find ways to educate yourself.

Taking the long view about the future will further your will to continue.

Capital can come or will show without you knowing it, but the time to educate yourself while you are out in the trading world cannot be overlooked.

Continue learning how to trade even though you are still out in funds, sooner or later you can master yourself in trading.

And from there, you cannot look back...



Thursday, September 15, 2011

Total gain/profit for today's trade...+$400.00 super clear...without waiting for Barak's employment package...
Close the trade at 11280...for a gain of 30 points...$150.00 profit...
Move stop to 11260 to make it safe...
Might as well put sell limit at target 11300 again...same scenario with the first trade...
Moving the stop to break even at 11250...
Moving my stop to 11240...
This time i will ride this till the close...
Bought YM at 11250 with a stop at 11220...
Done with my brief errands...looks like there is another chance to trade the YM...i'm watching...

In trading, timing is important...that's why observing the market and finding a good location to enter and exit a trade is the right way to make a gain...you don't need to emulate other traders...just form your own trading ideas...I'm done for the day...I accomplished my goal and I am set to do my errands...I hope I was able to help fellow new traders by showing my real time trading ideas...see you next on finding another trading opportunity...
Target sell got hit for a gain of 50 points, $250.00 profit...
Stop move to break even...
Put sell stop at 11300, targeting 50 points...
Bought YM at 11250 with stop at 11220...
The market, YM, skyrocketed?...

Wednesday, September 14, 2011

Target sell got hit for a gain of 45 points, $225.00 profit gain...buy low sell high really works?...13 minutes work is worth for a day's job...
Putting sell limit at 11020 with stop at break even ...
Try to buy low at 10975...let's see if it's going to work...
Stop got hit...loss 20 points...
Try to get YM at 11060 with stop at 11040...

The market is rallying?...

Tuesday, September 13, 2011

Stop got hit for a loss of 20 points...
Putting limit sell at 11020...
Try to get back again at 10980 with stop at 10960...
Stop got hit for a break even...
Move the stop to break even...11015...
Buying YM at 11015* with stop at 10980...
* made a mistake...

Monday, September 12, 2011

The market rolled in the last hour...

By observing the market closely, you can really make a good trade...

Target sell got hit for a gain of 50 points, $250 profit...
Move stop to break even...10790...
Move stop to 10780...
Putting sell limit at 10840...
Buying YM at 10790 with stop at 10760...
The market drops, YM chart...

Friday, September 9, 2011

The market drops today...









Target sell got hit for as gain of 30 points, +$150.00 profit for 15 min? job...
Moving the stop at 11045 to break even...
I am trading the YM futures for info in case others are wondering...
Putting target sell at 11075...
Putting sell stop at 11030...
Reverse trade 11045...
Sold short at 11030 with buy stop at 11050...
Buy stop got hit for a break even...
Stop move to break even at 11035
Sold short at 11035 with buy stop at 11055...
The market is dropping...


Thursday, September 8, 2011

Stop got hit...lost - 25 points...
For a second trade, buying YM at 11335 with stop at 11310...
Target sell price at 11350 got hit for a gain of 30 points, +$150.00 bucks... not bad for 10 min. job...I'm leaving my trading table for a doctor's appointment...see you then...maybe later...

Stop adjusted to break even at 11320...
Putting sell limit at 11350...targeting 30 points...
Buying YM at 11320 on long with a stop at 11300...
Will watch YM (DIA) for a pull back and observe if its going to make a move...

Wednesday, September 7, 2011

The market rolled...as I observed buying at the open and close it at the end of trading offered a low risk trade...

I was right with my observation that the trend for the day is on the upward...buying at the pullback in the open and monitor the trade till the close is really a low risk trade...

Hmm...YM went up to my target price at 11350...decided to traded out my position since I left my trading table to do some important errands...I should have just let it go...

Trade out at 11312...don't see any upward...gain at 32 points for $160.00 bucks gain...
Moving the stop at 11300...limit sell at 11350 stays...
Putting a limit sell at 11350...and moving the stop at 11290...
Moving the stop at 11280...
Get back at 11280 with a stop at 11260
Stop got hit for a break even...
Stop almost got hit...
Moving the stop to break even at 11270...
Buying YM at 11270 on long with stop at 11250...
Just for my own observation and the way I can see the trend from my live chart, the market is on the positive trend. Buying long at the open (possibly on a pullback) and let it run till the close has the big potential of a low risk reward...that's how I can see...

Market is gaining ground

YM is gaining ground on this 5-min. chart...

Tuesday, September 6, 2011


Showing the second trade, enter at 10970 and got stop at 11000 for a gain of 30 points, $150.00.
Stop got hit for a gain of 30 points, $150.00 gain for a contract...
Moving the stop at 11000
For the second trade, buying YM at 10970 with a stop at 10940...

Today's trade

Showing here the 1-min. chart of DIA which is similar to YM futures.

Enter at 10960 and exit at 11020 for a gain of 60 points, $300.00 bucks for a contract.

Exited @ 11020 for a gain of  60 points, +$300.00...
Buying YM at 10960 long with stop at 10900...
YM is dropping on this 5-min view...


The market is recovering

Monday, September 5, 2011

The market is down

The market was down with the Labor day session as can be seen with this 5 min. chart.

Saturday, September 3, 2011

Last trading day's chart

Shown in here the 5-min. chart of the last trading day of the YM.

A big drop from the regular open, but the overnight session was already on the verge of descent.

Partly due to the unfavorable job's report.

Looking at this chart, the most probable trade is to put a short trade at around 1:00 pm. at point 11300.00.

Exiting at 11200.00 for a gain of 100 points, that's +$500.00 sure bucks for a contract.



As a prelude...

As a prelude to my real time trades that will be posted onwards come next trading day.

My concentration will be on the Dow YM, but you can relate it to the etf's DIA if you don't trade futures markets.

They are almost the same.

Likewise, I will refer to the free stock charts to convey my trades and will use the DIA as the basis in real time.

Or I will show some chart from the Finviz in case, though the chart from there is a little bit delayed.

I can't post my real time chart that I used for my trading because it doesn't permit to. I used Strategy Runner software in my trading, Lite version.



Showing the 5-min. chart from the DIA last Friday's session.

Reviving my real time trading post...

Been a while not in the blog trading for I am tied up trading full time in my cave.
As a form of relaxation and doing some balance with my endeavor, I will try to post some of my actual trades in real time at the same time sharing my self-taught ideas especially for those who are still in their learning stage of trading futures.
There is no guarantee that I will be right, but my post will just serve as a guide and it will be up to viewers to examine/determine its probabilities.
So see you next trading day in real time!