This journal is to document some of my experiences trading CL based on Al Brook's (and Big Mike's, of course) insights into price action and exchange ideas/feedback with other crude oil traders.
I will be using a 60 min chart to help with LT trend guidance and a 5 min chart with a moving average as a reference point. I will also be looking at volume and drawing some s/r lines. Really bare bones.
My initial stops are 10 or 15 ticks depending on the type of market (and how I feel about it). I usually have 1-2 targets for 15 ticks and then 1-3 targets at 25 and 50 ticks that I can manage as the trade develops. I am still working on how best to exit. I have developed a tendency to close too early lately (now that I have increased nbr of contracts) so I need to work on that...
Some rules:
1. Trade from 8:00 - 2:30 EST, or until I hit my daily profit (or loss) target
2. Avoid 20-30 mins around inventory (Wed 10:30 EST)
3. No distractions (phone, e-mail, kids - although that last one is very hard to control...)
4. Be patient! Let the setup / trade develop
5. Don't trade if not relaxed and having fun
6. Be disciplined (follow these rules!) and keep good money management
I trade with TREND unless it's an obvious fade opportunity. But sometimes I get in trouble with those... I would like to get better at identifying transitions between trading range and trending markets.