I've been trading full time (on and off) since 2006. I've recently started trading the ES mini and thought I'd share the journey with the forum. I trade off the 5 min chart and use the 1 min & 2 tick Renko to help determine entry and exits. I don't use any indicators other than a Moving Average to help visually determine when the markets are trending vs. ranging. Unlike most, my charts are pretty bare. I've found over the years that any lagging indicators cloud my judgement when determining where the price is headed. Simple is best and has been the only consistent profitable method for me. I do tinker with other methods and strategies, but simple price action on naked charts pays my bills and is my primary trading style. You will notice lines on my charts. All are manually drawn in preparation for the day, including trend lines and range boxes through out the session as they develop.
I've set up a new account specifically for this Journal. Although I still trade other instruments, tracking this alone, in a public forum, will not only hold me accountable but demonstrate my trading style which can apply to any other product. I hope this helps those that are new to trading and reinforces simplicity to us veterans out there who always seem to get distracted with new ideas! ;)
I keep a spreadsheet of all my trades. I make random notes to myself while my trades are live and have simply cut and paste them from my journal. If there is a more visual appealing way to copy and paste from my excel spreadsheet, please let me know. Also, I record my desktop while I trade so I can revisit the day when things go wrong... which they do from time to time. I plan on publishing these sometime in the future, but I'd first have to edit out all the "dead time" between trades... time is money and I'll get to it when it moves up my priority list. If anybody has some input on how to make that process easier, I'd be happy to freely share them.
Journal Day #1
The wife is out of town today and I got the task of taxing the kids off to school. I missed a good chunk of the morning and missed out on some seriously good trades. The cost of kids keeps adding up!! I didn't get my first signal till about 10am PST and it was shady at best. It was a risky trade and cost me -16 ticks. I made it back later in the day and some to cover commissions and take my kids to dinner since I'm a single parent tonight. Break even isn't losing, so it was a good day.
Wednesday, November 28, 2012
Trade #1 Risk: High
Contract 1: Short @ 1401.25 Stopped @ 1403.25 -8 Ticks
Contract 2: Short @ 1401.25 Stopped @ 1403.25 -8 Ticks
Notes:
Took Short on price action break of bull trend. Signal 2nd bar from break. Entered close of 5 min bear then price started to range. Price came back to break 2 tick Renko. If price hovers near entry, I'll look to close position +1-2 ticks unless price moves short with conviction. Stopped.
Trade #2 Risk: Medium
Contract 1: Long @ 1402.50 Profit @ 1404.50 8 Ticks
Contract 2: Long @ 1402.50 Profit @ 14.06.00 14 Ticks
Notes:
Order placed on bull price action. 3 bull bar signal and continuation of days trend. Broke short range period with conviction. Look to cover half if filled, at or before previous days high. Trade started ranging. Looking to take +1-2 ticks unless there is conviction of trend continuation. Buying pressure took out first profit target near resistance of short mid day ranging. Deciding to hold second contract with daily trend till close. Set stop to break even +1 tick for commissions. New daily high decisively set, will hold to previous day high. If bulls push through the previous day high, look to hold till close. Hovering around previous day close, will wait for a few bars to see where price action will take us till close. Closed above previous day high and set new daily high. Will hold till close.
Daily Total: +6 Ticks
Total Gross: $75.00
Commissions: $16.88
Total P/L: $58.12 …