Just a bad thing to do. Last night I was trading the Yen in the Asian overnight. We had a rounded top formation so I went short into the US afternoon, Japanese early morning once we had broken the 118 level in the Yen.
The trade went well, and after an hour , I was in profit. Volume was falling and the market was getting quiet as it usually does this time of day, and I was waiting to take my profit.
I literally just fell asleep watching the screen. I had my original stop which as back up at the 118.20 level. I woke up and immediately closed the trade. I was now well off my trading plan, and when you are off your plan, the best plan is to get flat and regroup.
The reason I wrote this post is the moral of the story.
When you are off your trading plan for any reason, close out your trade and get back to disciplined trading.
Disciplined trading is really the only way.
I must admit I messed this one up. For some reason I came and checked my econ calendar and noticed that today was roll over day. I really thought it was next week for some reason.
I don’t trade on roll over days for good reason.
I tend to lose money on roll over days
So it is a goo time for me to take a day off. A very short week for me. Trade a day, take a day off and half day on Friday.
ok, so started again with a loss. Trading the TF this time. I hopefully will be able to get back to the grains in Sept. They are my first love anyway.
The first two trades were good. The third trade, the price sat on my limit price to get out of the trade. Reversed to hit my stop loss and then went well past my profit target.
I put my stop about the hit of the previous bar so it was an obviou point for stop running. That is trading.
I can’t draw conclusions yet from four trades, so I will probably stick with this for a week to get usefull metrics.
Well, this weekend I have been fooling around with TWAbVol. I still have not had enough time to play with the indicator.
I heard that another trader using it had a lot of success with it over the last two weeks, but using it in a totally different way than me. I use it to exit trades and manage risk, others use it to enter trades.
I will try to post images this week.
My current setup is all price action. I do use indicators to manage risk, but the entry signal is just price action. I seem to have much better luck with price action indicators that lagging indicators. I like ‘short term momentum trades’, which are hard to trade with lagging indicators like the MACD or moving average crossovers.
What is price action ? That is a hard thing to define since every one has their own idea on what price action is.
I use NinjaTrader / Zen-Fire / AMP Futures for my trading platform, and TraderWerks for my custom indicators.