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.
Friday, September 30, 2011
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.
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.
Thursday, September 29, 2011
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.
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
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.
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...
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) 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!
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!
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.
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.
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.
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.
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.
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
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.
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.
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.
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.
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...
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...
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...
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.
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 $$$...
Friday's profit taking is the usual mode of operation, nothing's new with that.
Though Mr. Market is still on a roll since Monday, seems it might loose its momentum come next week as far as my observation looks like.
From this 5-min. chart, I shorted Mr. Market from the top (see the double top), and made a +$250.00 gain from it.
Per technical and pattern observations, double top formation is a signal for the bears.
Also, a long trade is possible after the "W" formation between 10:00 am. and 12:00 noon.
Notice the two long legged doji" candle?...it made a dramatic upside after the pullback.
In trading, observing the market movement is the only way to make a good trade.
See you next Monday fellow traders, have a nice weekend and I hope I was able to help you make $$$...
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...
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
Wednesday, September 14, 2011
Tuesday, September 13, 2011
Monday, September 12, 2011
Friday, September 9, 2011
Thursday, September 8, 2011
Wednesday, September 7, 2011
Tuesday, September 6, 2011
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.
Enter at 10960 and exit at 11020 for a gain of 60 points, $300.00 bucks for a contract.
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.
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.
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.
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!
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