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Looking forward to see your journey! Remember to trade slow and steady according to your plan, even though there are 1000s of traders this isnt a co-op game, and you're mostly playing against yourself and your emotions
I hope this really helps me. I'm looking forward to it.
I've been trading quite a while but just off and on and this is the first time I've had the time to try my hand at day trading. I've only been at it a couple of months and I think I'm just at the point where I Think I know enough to be dangerous.
And it sounds like you are trading apex? - Correct, I don't want to promote anything here or say something not allowed but I had one 50k eval up to 52k and blew it. I was doing fairly well and not sure yet what I started doing differently. I do know that I'm not trading the way I want to eventually trade yet.
Trade 1. Not a good start to the day. The market gaped down on the open and except for the news bar formed a tight trading range with not much opportunity for stop entries. It was basically a limit order market around the flat EMA, where bears were selling bull closes and bulls were buying bear closes. So, I decided to take a small position shorting the close of B12 with 1 micro (MES). I didn’t want to risk to the top of bar 7 so I put a stop of $20, which is exactly where the market went to before reversing and giving me what could have been a profitable trade. If I wasn’t willing to use the proper price action stop, I shouldn’t have taken the trade in the first place. I think my idea of shorting at the top of the trading range was valid, I just did not execute properly.
Trade 2. Long ES entry above Bar 26 after 3 legs down and test of 60 minute EMA, stop below B26 for another loss. I think this was initially a valid entry, but again not good execution. First the B27 doji should have raised my suspicions and after entry when the trade did not take off and go my way I had 2 chances to get out break even but took a total loss. I need to get MUCH better at managing losers. At the very latest I should have exited after price went below the B29 low.
Trade 3. Long entry above bar 36. Reason being the B35-36 spike up was strong enough to at least get a second leg up, also good context there was a BO pullback test of the highs of bars 28-30 and a test of the EMA. This was a correct reading to the PA but after the loss I was cautious and trailed my stop up as the bar rose. I need to learn (train myself) to be aware of targets before even entering trades. I could have targeted the B23 high or the B17 high which both got hit and would have yielded more profit.
So, 1st day was a loser. -$131.48 for the day.
Another thought on trade 2. Bar 33 offered the same trade (premise) but only better because it was a 2nd entry and would have been a beautiful trade. Or, even better, entering above the B35 follow through would have been an even higher probability.
Making a list of my at least perceived trading short comings and what I want to do to overcome them:
1. Manage losers better
2. Wait for 2nd entries
3. Be aware of targets
I wasn’t able to trade yesterday so here are today’s results
Today’s trades:
Although I followed my plan of taking 2nd entries today, there is much improvement needed.
Trade 1. 2nd entry short under B9. Sold 2 micros because of selling towards the low of the days range made me nervous. After B10 closed a bull bar I was able to get out at BE+1 tick. I know it’s not a good idea to sell at the bottom of a trading range so getting out BE was a gift.
Trade 2. B20 2nd entry long (1st entry being 16). This was lower in the days range and seemed to be good spot for a long vs a short. Also B19 was a moving average gap bar. Trade did not work and managed to get out BE after bar 21 closed a bear bar. Looking back as the setup formed my mind was telling me it was at the bottom of the range but the entry ended up being towards the middle to the range right up against resistance. A better entry would have been the pullback of the bar 19 signal bar. I’m going to start looking at limit order entries more, as pullbacks and other obvious area’s of S/R.
Trade3. B55 2nd entry short, great trade (double top, micro double top, 50% retracement of the days range). Absolute terrible management. Went to BE stop way too soon. Instead of putting all my worry into the stop location I should have been looking for targets. The B39 low would have been a great 1st target for an 8+ pt winner. I have to condition myself to realize that the way I would have felt about a loss on that trade is not as bad as I feel about booting myself out of a great trade.
I could have minimized the loss a couple of ways. 1. Moved stop to above entry bar instead BE. 2. Entered on a pullback of the signal bar 54 (it was exactly 50%). I’m leaning towards no 2 as the better choice.
For some reason they reset my eval account, so the $131 and change loss from Monday was erased and I started fresh again at 50k.
Today’s trades netted a positive $5.00 so I’m done for the day.
I’ve started recording my screen during trades so I can go back and see exactly what I was doing, also trying to type notes on the screen to help me remember what I was thinking as well as what I was doing. Going to post my recording of today’s 3rd trade. I tried to speed it up and the quality is not that great but I hope to find it useful.
A little more detail about my planned limit order trades.
Al Brooks consistently says in his course that beginners should enter on stop orders and swing trades. I don’t disagree but I’m finding it difficult to due. Often when entering on stops the market quickly goes against you and your stop has to be at least behind the entry bar, probably farther. I have been noticing that often a pullback of the signal bar will get you in at a better price with less risk and less anxiety, and if the trade is going to work anyway why not just take the pullback? This pullback could even come a bar or two later. I realize that some trades will be missed this way, but trades are always missed and I cannot worry about them.
I’m going to look at the three trades I took today to see what the result might have been.
Trade 1. A 50% pullback of the bar 9 signal bar did not trigger on bar 10, so I probably would not have taken it. Also, as I said before the entry would have been in the middle of the trading range so not a good trade anyway.
Trade 2. The entry bar 20 pulled back exactly 50% of the signal bar 19. If I had entered on the pullback the trade went my way immediately and I could have gotten out with a 3 point profit when bar 21 closed bearish.
Trade 3. The bar 55 entry bar pulled back exactly 50% of the bar 54 signal bar. If I had entered the PB the trade would have immediately went my way. I also may not have felt the urgency to move my stop to BE, and neither trade two or three would have been affected by doing so.
I also missed another great trend today. Bars 21 to 38 a great bear trend moving nicely below the ema. When I see these trends I usually feel that if I enter on a stop I will the last trader to buy or sell before the reversal (I would be trapped). I know this is illogical and I know it can happen too. After all the institutions are always trying to trap each other to move the market into the direction they want. Unfortunately they don’t want to tell me when they are going to do it.
Finally, I know this all sounds good on paper. It will be a challenge because it’s definitely counter intuitive (and scary too), to buy while the market is coming down and sell when it is going up. But if I can overcome that, psychologically this may be a good way for me to go.
Then I need to work on concentrating on the PA, trying to see these setups as they are forming and have my plan to act ready when they do, because it seems to me that a lot of times these happen quickly and are easy to miss if you are not on your game.
Going to try to find some of these tomorrow with just a micro to see how it feels. I know I won’t pass and eval
with a micro, but if this works for me and I can be comfortable with it I can always add more.
Rumsontrader, are you confident with your understanding of second entries? You mentioned Al Brooks, I don't know his teachings but I believe Mack (Mack's Price Action Trading) which is who I initially followed also followed Al Brooks (I believe not positive), so I am thinking the two of them have similar 2nd entry understanding. I will add, I am no expert on second entries (always a bit vague to me) but it is my understanding if you are going to take a trade off a second entry, then if the PA is moving down, you wait for a second entry and look to sell. Visa versa if going up. To me it looks like you are calling a second entry with the PA going up and shorting. Maybe that's what you were taught? It's curious to me as to what your doing, not saying it's wrong just not the way I have always understood 2nd entry trades.
Would it be possible for you to show more of the PA in your screen shots, It is hard to see what your doing with so little price action showing. Wish you well!
Hi JMAL, Yes, sorry if I wasn't clear. Here is chart of yesterday with what I hope is a clearer explanation of my understanding of a second entry and how I would trade it. Unfortunately I didn't take this trade. But if I did I would have been selling as price was coming down, so a sell stop entry under bar 53 or 54. After the strong move up a second entry should give more confidence that price may be ready for a move down. Let me know if that still isn't clear and if this chart is better I will try to add more information on them in future.
I see what your thinking, Mack would call that area a failed second entry long. I never studied classic patterns but I have recently picked up on what you are calling M pattern on my charts. Thought I was being clever in seeing that when it has already been recognized as a M pattern. You taught me something new, thanks!
Comment on second entries-
They aren't the holy grail, but they can be helpful. As Mack points out they have to be used in context.
Mack sells a second entry indicator. IF you are a member of the blank chart group then you would rather learn to count them yourself. If you want an aid it is like most things Mack, not much money.
Here is an example of the second entry indicator. He has since upgraded it from my version. Please think of me as a price action heretic. That 21 Ema Lizard Trading 's Fibonacci Bands, a Keltner based on 1.616 +- the 20 period Average True Range centered on the 21 EMA. The Stalk Zone Bands are one of the tings you get from Convergent Trading. They are their opinion, based on volume profile, of where the market is most likely to change direction. The color scheme is the solarized palette I downloaded from here several years ago. The engulfing and inside bar color markers are by Botz, may he rest in peace, posted here as TGN engulfing.
As I said above, you can't trade 2nd entries as a stand alone. ES 06-24 (2000 Tick) 2024_06_05 (10_11_49 AM)
