Wednesday, August 19, 2009

Trades for 8-19-09

Sorry about not making my posts like I do. I’ve been so out of it lately because of that long road trip (and diet going down the tubes) I forgot to make my daily posts. Now that I’m getting back on track with my habits I feel better.

Today I almost was back on track with my trading. I’m still paper-trading, and relearned some things which I had forgotten about. Since I won’t be posting results/charts again today I'll post the list of notes that I printed out and taped to my desk so I always remember to look at them. These notes are basically the foundation of my trading, and if I stick to them I should be back to it in no time.

• Check larger time frames in the morning to get an overall idea of where things will head throughout the day.

• Use that info to trade only 1M leaning toward your overall forecast (i.e. larger timeframe says over all trend should be down then trade mostly shorts with most of your sizing on the shorts).

• Only check larger timeframes during the day to see if overall picture has changed. If it has changed then adjust accordingly (i.e. if it looks to be going flat don't trade, if it looks to be reversing then lean the other direction).

Remember that you want to forecast, not react!

• When you forecast flatness step away from the computer! If you have to, go fishing!

• Reset lines each day (clear ALL support/resistance/trend lines at the end of each day), and make new ones the following morning using mostly the 1M chart.

Shy away from playing pullbacks, and when you play them only trade them with light sizing.

Pay attention to the economic data and adjust your naps if major news is coming out.

• On Fridays you only trade the morning (STOP trading after about 9amMST) and be super cautious! 99% of the time you will not have ANY trades on Fridays.

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