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SoftSoap's NQ Journey - from SoftSoap to SoftGold


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SoftSoap's NQ Journey - from SoftSoap to SoftGold

  #151 (permalink)
 
SoftSoap's Avatar
 SoftSoap 
Canada
 
Experience: Beginner
Platform: NinjaTrader
Broker: InteractiveBrokers
Trading: NQ
Posts: 594 since Aug 2015
Thanks Given: 347
Thanks Received: 1,227

Very low range day today, there was only one setup which fit my plan that would've been profitable, and I took the wrong one! One trade, one loss today.

First trade opportunity - Passed
  • Market moved a couple of pts fast, but not enough signs for my setup
  • Glad I passed because I would've lost this setup within 20 seconds

Second trade opportunity - Passed
  • Short @ 4830 around open
  • Some bearish signs were there, and sort of looked like exhaustion of 24hr move
  • Not good enough signs to enter though
  • Would've been a loss

Third trade opportunity - Passed
  • First setup alarm was hit ~ 4833 ON High
  • Signs were just not there
  • I really wanted to short this, I felt super bearish and wanted to be in a trade really bad. I had to consciously stop myself
  • Would've been a loss

Fourth trade opportunity - Passed
  • Same setup hit again ~4833 ON High
  • Again the signs weren't there
  • Essentially same trade as last time, and I had to pass up on it
  • Would've been a loss

Fifth trade opportunity - Taken
  • The alarm hit and I was deciding between the long break-out or the short reversal trade.
  • I didn't see enough signs for a reversal so I went with a pre break-out trade entry.
  • About 45 seconds into the trade I felt very nervous about it and not as confident anymore.
  • The signs that I initially saw that were bullish were still there, but they just weren't strong enough to assume a big move up.

If I wasn't in the trade, I wouldn't have entered, but I just got myself into the trade a minute ago :Sarcastic:




Trade Grade - OK
  • It was part of the plan
  • Some signs were there, but it felt like a 51/49 gamble
  • Decent (but not good) target and/or stop

Do not look at P&L
  • 0 FOMO trades - I'm not sure if I passed or failed on this to be honest. The trade entry didn't feel like FOMO at all, but I'm not sure why I didn't exit the trade when the signs were there, was I emotional? was I FOMOing? Was I still more sure about a break-out than a reversal? I honestly don't know. I feel my mind was clouded with nervousness to truly make a good decision.
  • 0 Emotional trades - I'm not sure if I passed or failed on this to be honest. The trade entry didn't feel like FOMO at all, but I'm not sure why I didn't exit the trade when the signs were there, was I emotional? was I FOMOing? Was I still more sure about a break-out than a reversal? I honestly don't know. I feel my mind was clouded with nervousness to truly make a good decision.
  • Engage deliberate thinking in all trades- Passed
  • 2 trades max today - unless trend day and you won at least 1/2 trades - then 3 trades max- Passed
  • Abide by your new trade management standard- Passed
  • Do not get greedy with any of your trades- Passed

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  #152 (permalink)
 
SoftSoap's Avatar
 SoftSoap 
Canada
 
Experience: Beginner
Platform: NinjaTrader
Broker: InteractiveBrokers
Trading: NQ
Posts: 594 since Aug 2015
Thanks Given: 347
Thanks Received: 1,227

  • ON session relatively low range
  • Looks like little to no impact from the debate
  • Volume has steadily dropped this week day-to-day
  • Range has been lowering this week day-to-day
  • Still on a 'rally' from Oct 13th @ 4760 last week

News
  • Jobless claims came in slightly worse than expected
  • Philadelphia fed business survey came out a bit better than expected, but within consensus range
  • Draghi's talking right now
  • Existing home sales @ 10
  • Leading indicators @ 10

Setups I'll take today
  1. ~4880
    • LF Short
    • You want to see strong signs of exhaustion or aggressive selling
    • Stop behind 4880 is a must
    • Target ~14 pts depending on time should be safe, ~4861 stretch
    • If we had a trend bull day getting us here, don't take unless it's near the end of the day, unless signs are very very strong
    • If you haven't taken many setups yet, you might be tempted to take a break-out trade if we pass this - do not do this as 4890 and 4900 are very strong areas - you can take those setups instead
  2. ~4860
    • LF Long
    • You are looking for a break-out trade here
    • The 50 zone should've been shattered
    • There's little sign of slowing at ~4855, and 4860 is offering little resistance
    • Stop behind 4855 is ideal
    • Target ~4874 safe, ~4878 stretch
    • The market must be strongly bullish from the open to take this setup
    • Be prepared to pass up on this setup
  3. ~4860
    • LF Short
    • You are looking for strong signs of aggressive selling
    • Strong exhaustion signs could be good enough to enter this trade
    • Ideally look for signs that higher time frame players are stepping in
    • Ideal stop is behind 4865, but could be very hard to get
    • Target ~ 4843, but watch the ~50 area for signs that you just took a pullback
    • Ask yourself - are you confident that the current trend is now bear?
  4. ~4840
    • LF Short
    • You are looking for strong signs of a reversal
    • Exhaustion is not good enough to enter this trade
    • You want to see higher volume
    • Stop needs t be behind 4845 area
    • Safe target is ~4826 and stretch target is ~4817
    • You must watch the 4830 and 4825 area very closely for any signs of strong buying
    • Be prepared to pass up on this setup
  5. ~4840
    • LF Long
    • You are looking for a break out trade
    • You want to see some strong profiles that resemble a bull trend day
    • You want to see high volume and sell orders being filled without any issues
    • Stop behind 4838 is ideal
    • Safe target is ~4853, stretch target is 4858
    • You must watch the 50 area closely for any signs of reversal - be prepared to exit if signs of reversal are strong
    • 4840 has held strongly these last 2 days, so be careful about taking a preemptive break-out trade after hitting the 4834 area
    • Be prepared to pass up on this setup
  6. ~4825
    • Price balanced ~ this area during Draghi announcement, so take extra caution
    • LF Short
    • Look for signs that the market doesn't want to go any higher
    • Stop behind 4830 is ideal
    • Target 4811 is safe, 4803 is stretch
    • Be very careful about taking this setup, SPECIALLY in the morning
  7. ~4825
    • LF Long
    • You want to see some very strong signs from the open
    • You want to see strong bull profiles
    • You want to see higher volume
    • Stop behind 4820 is ideal
    • Safe target is ~14 pts
    • Stretch target is ~4838
    • Be very careful about taking this setup, SPECIALLY in the morning
  8. ~Open
    • LF Long or short
    • This is going to be a big test to your psychology as this is more flexible than this setup has been in the past
    • Do not be eager to take this
    • Only take this if you see some very strong signs that the market wants to go one way and sees little resistance
    • You want to see strong profiles
    • It's okay to pass up on this, there'll be many more opportunities today to trade
  9. ~4810 (PD ON Low)
    • LF Long
    • You are looking for signs of reversal
    • You want to see strong volume
    • Ideally, you'd want to see higher time frame players stepping in to buy - but don't expect it if volume / range for the day are low
    • Exhaustion isn't good enough to enter this
    • Stop behind 4809.50 is a must
    • Safe target is ~4824, stretch target is ~4831
    • Do not get greedy on this
    • Be prepared to pass up this setup as ~4800 should be stronger
  10. ~4800
    • LF Short
    • You are looking for a continuation of a strong bear trend
    • You don't want to see anything slowing things down
    • ~4810 zone should've been shattered
    • You might see a bit of resistance so be careful as to when you enter
    • You need to see higher time frame players stepping in to drive the market down
    • If volume is low, then be extra careful
    • Be prepared to pass up on this
  11. ~4800
    • LF Long
    • You are looking for signs of reversal
    • You want to see strong volume
    • You want to see higher time frame players stepping in to buy
    • Exhaustion isn't good enough to enter this
    • Stop behind 4796 is ideal
    • Safe target is ~4814, stretch target is ~4824
    • Don't get too greedy with this
  12. ~4780
    • LF Long
    • You want to see some strong buying here
    • Exhaustion might be good enough to enter
    • The later in the day, the better this setup becomes
    • Safe target is ~4796, stretch target is ~4809

Psychology goals today
  • Do not look at P&L
  • 0 FOMO trades
  • 0 Emotional trades
  • Engage deliberate thinking in all trades
  • 2 trades max today - unless trend day and you won at least 1/2 trades - then 3 trades max
  • Abide by your new trade management standard
  • Do not get greedy with any of your trades

Yesterday's excellence is today's standard and tomorrow's mediocrity
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  #153 (permalink)
 
SoftSoap's Avatar
 SoftSoap 
Canada
 
Experience: Beginner
Platform: NinjaTrader
Broker: InteractiveBrokers
Trading: NQ
Posts: 594 since Aug 2015
Thanks Given: 347
Thanks Received: 1,227


1 Pre-trade taken today and 2 RTH trades
Technically 2 wins but 1 was like a 1 pt profit so I consider those as break-even trades lol

First trade was around the Draghi news, and honestly it was an emotional trade
I had a good entry for a break-down and a good stop, but it was an emotional trade, and I didn't feel comfortable keeping it for longer.
I stuck my head back in the game and thankfully the market was going my way so I set a stop 1 pt in front of my entry so at least I wouldn't lose too much money from this mistake. I didn't take any pictures of it.

First RTH trade
~Open setup at ~ 4825, but I was paying attention to the open setup and not the 4825 part of my plan (bad idea)

I saw the market moving down and I felt bearish so I took the trade. Even though I didn't use a market order, my entry point was really bad.
I was ok with a bad entry because I was so eager to enter into a bear trade.



I paid for having a bad entry point

Trade grade - Bad
  • Not in plan (technically it was, but saying you can short or long at the open pretty much puts everything in the plan lol)
  • Some signs were there, but it felt like a 51/49 gamble

Honestly, I think I should be avoiding any ~open setups for now, I don't think I'm strong enough psychologically to be able to make the right and quick judgment call when the market is moving that fast.

Second RTH trade

Alarm was hit at ~ 4803 area and I was looking for a reversal.
The price was falling fast and I was a bit hesitant about trying to catch this knife, and I was somewhat in loss aversion mode because I lost my last trade.

I got in at a good entry point though, and my stop was behind the 4896 area as stated in my plan, so I kept on watching to get more confirmation that the market was going to reverse.




Believe it or not but about 5 points up I was a bit worried that this was just a pullback and I wanted to get out of the trade.
I didn't see strong enough signs that this was just a pullback but I was in loss aversion mode.

Thankfully I realized I was in loss aversion mode and I asked myself the following question:
"If I was up today and confident in my trading, would I exit this trade? "

The answer was a very clear no, so I walked away from my computer.


Things were looking good and I wanted to move my target up, but that would've been me being too greedy. I decided against it despite being the right move $-wise (I wouldn't know that at the time though). However, it would've still been within my trade management rules.





Trade grade - Good
  • It was in the plan
  • Observed signs of entry
  • Good target and stop

Psychology goals for the day
  • Do not look at P&L - Failed
  • 0 FOMO trades - Failed
  • 0 Emotional trades - Failed
  • Engage deliberate thinking in all trades - Failed
  • 2 trades max today - unless trend day and you won at least 1/2 trades - then 3 trades max - Passed
  • Abide by your new trade management standard - Passed
  • Do not get greedy with any of your trades - Passed

I started off pretty bad psychology-wise, but I was able to pull myself back and ended up taking a really good trade that put me in the green today.

Yesterday's excellence is today's standard and tomorrow's mediocrity
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  #154 (permalink)
 
SoftSoap's Avatar
 SoftSoap 
Canada
 
Experience: Beginner
Platform: NinjaTrader
Broker: InteractiveBrokers
Trading: NQ
Posts: 594 since Aug 2015
Thanks Given: 347
Thanks Received: 1,227

  • Very low range ON session
  • HK market closed due to typhoon - will that matter to the US at all?
  • Weekly range currently sitting at ~75, ATR is 117
  • 14 day VA between 4800 and 4869
  • 14 day VPOC 4835
  • Some uncertainty around ECB QE - USD
  • Microsoft and paypal had some very positive results last night, very strong response from the market
  • ES is currently down ~30%, YM is up 14%, and NQ is down 10%. Not as correlated as usual
  • Big move down from CL last 2 days, but still above 50 area
  • Banks look to be in the red pre-open
  • 5/6 of NQ's biggest are in the green pre-open

News
  • No major news today

Setups I'll take today


  1. ~4890
    • LF Short
    • Can enter preemptively depending on the time
    • Stop behind 4893 is ideal
    • Target ~14 pts should be safe, ~4868 stretch
    • Make sure you exit before market closes though
  2. ~4880
    • LF Short
    • IF range has been low, you can consider entering preemptively, but you need to see some strong exhaustion signs
    • Stop behind 4880 is a must
    • Target ~14 pts depending on time should be safe, ~4861 stretch
    • If we had a trend bull day getting us here, don't take unless it's near the end of the day, unless signs are very very strong
    • If you haven't taken many setups yet, you might be tempted to take a break-out trade if we pass this - do not do this as 4890 and 4900 are very strong areas - you can take those setups instead
  3. ~4860
    • LF Short
    • You are looking for strong signs of aggressive selling
    • Strong exhaustion signs could be good enough to enter this trade
    • Ideally look for signs that higher time frame players are stepping in or that an end of week correction is about to start
    • Ideal stop is behind 4865, but could be very hard to get
    • Target ~ 4843, but watch the ~50 area for signs that you just took a pullback
  4. ~4850 (ON High)
    • LF Short
    • You are looking for aggressive selling
    • Stop behind 4855 is ideal
    • Target ~4836 is safe, ~4827 is stretch
    • You want to be confident that the trend is now bear
    • Be prepared to pass up on this
  5. ~4830 (On Low)
    • LF Long
    • You are looking for strong signs of buying
    • Stop behind 4825 is ideal
    • Target of 4842 is safe, 4849 us stretch
    • Be prepared to pass up on this
  6. ~4830 (On Low)
    • LF Short
    • You are looking for a break-down trade
    • Ideally you want to see higher volume and little resistance around this area
    • Ideal stop is behind the 4835 area
    • Safe target is ~4819
    • Stretch target is ~4813
    • Be very careful around taking this setup, as we saw some small support areas at ~4825, ~4820, and ~4815
    • You need to be confident that there will be force driving this down
  7. ~4810
    • LF Long
    • You are looking for signs of reversal
    • You want to see strong volume
    • You want to see higher time frame players stepping in to buy
    • Signs of exhaustion would have to be very strong to justify entering this
    • Stop behind 4805 is ideal
    • Safe target is ~4819, stretch target is ~4824
    • Don't get too greedy with this
  8. ~4800
    • LF Long
    • You are looking for signs of reversal
    • You want to see strong volume
    • You want to see higher time frame players stepping in to buy
    • Strong signs of exhaustion could be good enough to enter this
    • Stop behind 4796 is ideal
    • Safe target is ~4814, stretch target is ~4824
    • Don't get too greedy with this
  9. ~4780
    • LF Long
    • You want to see some strong buying here
    • Exhaustion might be good enough to enter
    • The later in the day, the better this setup becomes
    • Safe target is ~4796, stretch target is ~4809


Psychology goals today
  • Do not look at P&L
  • 0 FOMO trades
  • 0 Emotional trades
  • Engage deliberate thinking in all trades
  • 2 trades max today - unless trend day and you won at least 1/2 trades - then 3 trades max
  • Abide by your new trade management standard
  • Do not get greedy with any of your trades

Yesterday's excellence is today's standard and tomorrow's mediocrity
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  #155 (permalink)
 
SoftSoap's Avatar
 SoftSoap 
Canada
 
Experience: Beginner
Platform: NinjaTrader
Broker: InteractiveBrokers
Trading: NQ
Posts: 594 since Aug 2015
Thanks Given: 347
Thanks Received: 1,227

Relatively volatile open.

First trade pre open

A bit of an emotional and FOMO trade here. I was in the middle of my market prep and I hadn't quite finished it, but I set alarms near the ON low just in case they were hit before the open and once the alarm was filled I looked at the charts. Things looked bearish from a quick glance so I got a fill ASAP. This was bad because I really didn't know what would be a good entry point, where to place my stop, where to aim my target, as my homework wasn't quite down.
I ended up paying for that mistake and honestly it's an easy mistake to avoid in the future. Thus I'll be adding it to my silver rules.

No picture for this unfortunately.

New Silver rule - I will not take any pre-market setup that is not already part of my trading plan.

Trade grade - Bad
  • Not in plan (It is now, but it wasn't when the alarm for it went off)
  • Some signs were there, but it felt like a 51/49 gamble


Second trade pre-open / RTH


Once I was able to put my plan together and saw what a good entry, stop, and target would be. The price was around the area still and I looked for the signs and entered the trade.

I didn't realize I only took the picture of my 15min 24hr chart so I apologize for the crappy screenshot


Honestly part of me wanted to exit the tradeabout 5 pts in, as I was feeling some loss aversion. Same as yesterday, because my first trade was a loss.I looked at things and said okay if I didn't just lose that last trade, what would I do?

I would move my stop to secure a profit here, and keep my target above the 4815 mark.

So I did that, and then walked away as I knew I wasn't in a strong state of my mind to watch the trade.





Came back and
I also was very happy with my target because it strongly turned around after that

Trade grade - Good
  • It was in the plan
  • Observed signs of entry
  • Good target and stop


I'm starting to see a trend in my psychology. If the first trade I take is a loss, and not a 'good' trade, I get into loss aversion mode. It's good to recognize it so you can make sure you are still making the right trading decisions.

I've got potentially one trade left to take this week, so it should be another positive week as I won't be risking enough to wipe out my wins so far.


Yesterday's excellence is today's standard and tomorrow's mediocrity
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  #156 (permalink)
 
SoftSoap's Avatar
 SoftSoap 
Canada
 
Experience: Beginner
Platform: NinjaTrader
Broker: InteractiveBrokers
Trading: NQ
Posts: 594 since Aug 2015
Thanks Given: 347
Thanks Received: 1,227

2 trades taken today, 1 win 1 loss so I ended positive.
Detailed trades are above.

Psychology goals for the day
  • Do not look at P&L - Technically failed, I looked at it after my 2nd trade but that's because I didn't think I'd take another trade today
  • 0 FOMO trades - Failed
  • 0 Emotional trades - Failed
  • Engage deliberate thinking in all trades - Passed
  • 2 trades max today - unless trend day and you won at least 1/2 trades - then 3 trades max - Passed
  • Abide by your new trade management standard - Passed
  • Do not get greedy with any of your trades - Passed

It's nice to end the week on a positive note.

See you tomorrow.

Yesterday's excellence is today's standard and tomorrow's mediocrity
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  #157 (permalink)
 
SoftSoap's Avatar
 SoftSoap 
Canada
 
Experience: Beginner
Platform: NinjaTrader
Broker: InteractiveBrokers
Trading: NQ
Posts: 594 since Aug 2015
Thanks Given: 347
Thanks Received: 1,227

Somewhat uneventful week and some days were super slow, but I was able to take some trades every day!

Goals for this week
  • Do not look at P&L until Friday- Failed
  • 0 FOMO trades- Failed
  • 0 Emotional trades- Failed
  • Engage deliberate thinking in all trades
  • Journal daily- Passed
  • Aim for 2 trades on most days, and 3 if the market is volatile and you won at least 1 of previous trades (ON trades don't get counted on this, but max 1 ON trade her night)- Passed
  • Make sure you watch FT71 webinar live, the topic is very relevant this week- Passed
  • Abide by your new trade management standard- Passed
  • Do not get greedy with any of your trades- Passed
  • Make formal changes to your rules- Failed
  • Update your personal tracking spreadsheet to refer modifications to your rules- Failed
  • Ensure you are at your desk 75 minutes before market open every day - don't sleep in- Passed

I haven't updated my journal to reflect the rule changes. Same for my spreadsheet, no big deal but it is something I want to do.
I think I had 1 FOMO and emotional trade this week, so while it's not a lot it is still not ideal

Stats
P&L: 3.18%
Trades taken: 10
Rational trades: 3
Emotional trades: 1
Mixed trades: 6

I've said it before in my journal but I'm not sure how relevant this stat is anymore. I'm finding it harder and harder to categorize between rational and mixed trade that I edge with the side of caution and go with mixed. I'm going to start tracking reasoning as why I feel each trade was either rational or mixed so I can start to see what is important from this stat, and track that directly. I do feel that tracking emotional trades is still important though, because I want to keep it as close to 0 as possible.

Out of those trades:
Excellent trades: 0
Good trades: 5
Ok trades: 2
Bad trades: 3
Really bad trades: 0

Half of my trades this week were 'good', that means they were in my plan, good entry, good stop, good target. This is a good trend haha :Sarcastic:

Win%: 50%
Weekly Expectancy: 61.00

This is the first time I have gotten a 50% win ratio when taking 10 or more trades
My wins are ~2.5x my losses, so I don't need to have a 50% win ratio to be profitable, but why not work on the win ratio as well?

I'm finding that limiting myself to a # of trades makes me focus on only taking the best setups of the day. Most days there'll be enough opportunities in the market for me to be profitable, so why not just take the best setups? Of course every now and then I still suffer from FOMO and emotional trading so I'll take less-than-ideal setups, but overall this seems to be working well.

Yesterday's excellence is today's standard and tomorrow's mediocrity
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  #158 (permalink)
 
SoftSoap's Avatar
 SoftSoap 
Canada
 
Experience: Beginner
Platform: NinjaTrader
Broker: InteractiveBrokers
Trading: NQ
Posts: 594 since Aug 2015
Thanks Given: 347
Thanks Received: 1,227

  • Long-term trend is still bullish, but showing even stronger signs of exhaustion
  • We did not have the volume we saw last week and range dropped as well - sign of a potential balance this week?
  • Although last few weeks things look to be balancing around the weekly candles
  • Weekly wicks are showing balance between ~4800 and ~4870
  • Long-term value area reinforces this view
  • From a fundamental standpoint, tight balance from now until the election makes sense
  • Balance between 4760 - 4900 looks likely until big fundamental changes
  • Expect balance ~ those areas but be prepared for a break-out / break-down at anytime. Specially if some fundamentals change
  • GDP news on Friday, some Japan announcements on Wednesday
  • Key earnings this week
  • Tuesday - Apple
  • Wednesday - Comcast and Tesla
  • Thursday - Amazon and Alphabet
  • We have some big announcements the following week, so be prepared in case you see players making their bets this week (FOMC, BoJ)

Goals for the week
  • Do not look at P&L until Friday - You have been failing on this lately. Remember that when you look at your P&L on a daily basis you tend to shift your mentality towards short-term profits, and your goal is long-term growth!
  • 0 FOMO trades
  • 0 Emotional trades
  • Engage deliberate thinking in all trades
  • Journal daily
  • Aim for 2 RTH trades on most days, and 3 if the market is volatile and you won at least 1 of previous trades (as for ON / Pre market trades, 3 max per week)
  • Abide by your trade management standard
  • Do not get greedy with any of your trades
  • Make formal changes to your rules - Don't look to make things perfect. Perfect is the enemy of done, just finish it and build on them as you grow
  • Update your personal tracking spreadsheet to refer modifications to your rules
  • Ensure you are at your desk 75 minutes before market open every day - don't sleep in
  • Be active every day. This might not seem trading related but when you get an adequate amount of physical activity you sleep better, feel more confident, and your mind seems calmer. These are all things that have a positive impact on your trading


Yesterday's excellence is today's standard and tomorrow's mediocrity
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  #159 (permalink)
 
SoftSoap's Avatar
 SoftSoap 
Canada
 
Experience: Beginner
Platform: NinjaTrader
Broker: InteractiveBrokers
Trading: NQ
Posts: 594 since Aug 2015
Thanks Given: 347
Thanks Received: 1,227

  • ON session saw a big move up, and then balance ~ 4875 area, but quite bullish open ~30 pts up from open
  • Everything in the green from my NQ watch list apart from PYPL and NFLX
  • T-mobile up 4+% from beating profit estimates and raising customer additions
  • Banks in watch list are all in the green, with DB being 2.4% up
  • EU composite flash numbers came in better than expected
  • Volume profile looks quite bearish on the 24hr profile
  • 14 day RTH VA between 4790 and 4850

News
  • Some fed speakers pre-market
  • PMI Manufacturing Index Flash @ 945
  • More fed speakers @ 1330

Scenarios
  • Correction from ON activity - Start trending bear, until market finds strong support zone, then trend from ON high and that found support zone
  • Trend bull until market finds strong resistance, either at ~4880, ~4890, or ~4900. Then trend bear for the remaining of the day
  • Trend bull until market finds strong resistance, either at ~4880, ~4890, or ~4900. Then trend until market finds strong support, and range between those 2 points
  • Trend bull day
  • Trend bear day

Setups I'll take today


  1. ~4900
    • LF Short
    • Can enter preemptively assuming we didn't shatter the 80 and 90 zone
    • Exhaustion signs will be good enough to enter depending on the time
    • The later we hit this setup, the better it becomes
    • Stop behind 4903 is ideal
    • Target ~16 pts should be reasonable, ~4876 stretch
    • Be careful if bull trend day and it's still early
  2. ~4890
    • LF Short
    • You should be seeing strong signs of exhaustion or aggressive selling
    • You want to see higher time frame players stepping in to sell
    • Volume should be high
    • The later we hit this setup, the better it becomes
    • Stop behind 4895 is ideal
    • Target ~ 14 pts safe, ~4864 stretch
    • Watch the ON high area and be prepared to exit for a smaller profit around there
  3. ~4880
    • LF Short
    • You want to see some aggressive selling
    • You want to see higher time frame players stepping in to sell
      [*}you need to be confident that we have shifted to a bear trend
    • Stop behind 4880 is a must, behind 4885 is ideal
    • Target ~14 pts depending on time should be safe, ~4853 stretch
    • If we had a trend bull day getting us here, don't take unless it's near the end of the day, unless signs are very very strong
    • You might be tempted to take a break-out trade if we pass this - do not do this as 4890 and 4900 are very strong areas
    • The later we hit this setup, the better it becomes
  4. ~4875 (ON High)
    • LF Short
    • You are looking for some very strong selling
    • You need to see higher time frame players stepping in to sell
    • Ideally you'd like to see some strong resistance on the ES as well
    • You need to be very confident that the trend is now bear
    • Be prepared to pass up on this setup - not likely you will take this setup
  5. ~4840 (ON Low)
    • LF Long
    • You are looking for strong signs of reversal
    • You need to see strong volume and strong buying
    • Stop behind 4838 is a must
    • Target ~15 pts is safe, ~ 4859 stretch
    • You don't want to enter this setup preemptively, even if it means not getting as optimal of an entry
  6. ~4840 (ON Low)
    • LF Short
    • You are looking for a break-down
    • You want to see force driving the move from whatever the starting point was
    • You should see a bit of resistance around here, but you should not be seeing strong reversal signs
    • Stop behind 4845 is ideal
    • Safe target is ~4826, Stretch target is ~4817
    • Be careful not to be too preemptive about this - you need to make sure there are no reversal signs and the signs for the continuation of a bear move are very strong
  7. ~4820
    • LF Long
    • You are looking for signs of a reversal
    • Entry will be very important as this is quite a large zone - watch the market closely
    • Safe target ~ 14 pts, stretch target ~4839
    • Stop behind 4810 is ideal, but might be difficult
    • Don't get too greedy on this
    • Be careful if we are on a bear trend day
    • The later in the day, the better this setup becomes
  8. ~4800
    • LF Long
    • You are looking for signs of reversal
    • Ideally, you want to see higher time frame players stepping in to buy
    • Strong signs of exhaustion will be good enough to enter this
    • Stop behind 4796 is ideal
    • Safe target is ~4814, stretch target is ~4824 - Adopt to what areas showed resistance during any pullbacks on the move that got us down to this though
    • Don't get too greedy with this
  9. ~4780
    • LF Long
    • You want to see some strong buying here
    • Exhaustion might be good enough to enter
    • The later in the day, the better this setup becomes
    • Safe target is ~4796, stretch target is ~4809

Things to watch @ open
  • Volume profiles - Look for any signs of a potential trend day today
  • Total volume - Will we see higher time frame players stepping in now? or when we get to the juicier prices of 4780+?
  • Range - will it be a small range ~ the open as we are getting to the higher areas where historically we haven't stayed in for very long?
  • Will there be a strong correction? Possibly a squeeze from the ON activity?

Psychology goals today
  • Do not look at P&L
  • 0 FOMO trades
  • 0 Emotional trades
  • Engage deliberate thinking in all trades
  • 2 trades max today - unless very strong setup and you won at least 1/2 trades - then 3 trades max
  • Abide by your trade management standard
  • Do not get greedy with any of your trades

Yesterday's excellence is today's standard and tomorrow's mediocrity
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SoftSoap's Avatar
 SoftSoap 
Canada
 
Experience: Beginner
Platform: NinjaTrader
Broker: InteractiveBrokers
Trading: NQ
Posts: 594 since Aug 2015
Thanks Given: 347
Thanks Received: 1,227


What a day today. Looking at my plan, the best I could've hoped for would be to avoid taking any setups as I was not prepared for what was about to happen

Having said that, today was a good & bad day trading wise. I took 2 setups and had 2 losses (the bad part), but both setups were 'good'. I traded well, but things didn't plan out, you're going to have those days. This is my first time trading the 'earnings season' and the lack of experience definitely showed.


First trade opportunity - Passed
ON high setup, it looked very weak and it was pre-market so it was a very easy setup to pass

Second trade opportunity - Taken

We hit the 4880 setup right away and I was looking for some strong bear signs.






Trade was looking really good at first. My entry was really good, my stop was behind my ideal area in my trading plan, and the market started to go my way as expected. Then it all got taken out with some very strong buying and that was it for the trade!

Some trades don't work out, but this was a 'good' trade. In retrospect I wish I passed up on this trade and took the 4890 trade instead, but that's hindsight bias

Also in retrospect, I took a riskier setup and I don't know that the signs were strong enough to warrant that. When I took the trade I felt the signs were strong, but I wasn't putting enough emphasis on the fundamentals. I can't really blame myself for this because I've never actually experienced earnings season before.


Trade Grade - Good
  • It was in the plan
  • Observed signs of entry
  • Good target and stop

Third trade opportunity - Passed

We get to the 4890 area and the profiles start to look extremely bearish
Pretty much everything I look for in a reversal, is there
Price action is also showing strong exhaustion signs and a reversal seems likely



I chose to pass up on this setup because I tell myself that if I only have one setup left I'd rather take the new all time high setup (assuming we get there), instead of this one. This setup looks very strong but with the strong bull sentiment we could see all-time highs today.

However, if the signs get even stronger around the ~4890 setup, I will take it

Was this the right decision as a trader? I now know it would've resulted in a loss either way, but should I have taken this setup since all my signs were there? I don't know honestly.

Fourth trade opportunity - Taken


I walk away for a bit because passing on the last setup got me really thinking and I needed to clear my thoughts.

Did I make the right decision to pass up on this setup? My intuition tells me we are going to hit all time highs today, but I'm not an experienced enough trader to rely on my intuition. All the information on my charts tells me to short.

I ask myself, if I didn't lose my last trade, would I take this setup? The answer was yes, without a doubt.

I came back and the signs just got stronger and stronger.

Right now I feel that the market can go higher, but the chart and profiles are telling me something different. I'm not a good enough trader to go off my intuition, so I need to interpret the signs and act on them.

The signs say exhaustion is strong, price is being absorbed, and expect the market to drop soon. This trade is within my trading plan and meets the requirements that were laid out in my trading plan. Therefore, the logical action is to short at a good entry and exit.


I choose an entry place where I can have a very good stop according to my plan, and I wait for price to come to me.


Things are looking good as for a reversal. The last 45 minutes were slightly bearish and left some selling wicks. The profile looks super bearish. All of this makes me feel comfortable and honestly I've taken a good setup, that's all I can do.



And in similar fashion to the first trade, I get stopped out and the market goes up.

It didn't feel good

You always want your 'good' setups to be profitable, but that's not how the market works.
Trade Grade - Good
  • It was in the plan
  • Observed signs of entry
  • Good target and stop

Psychology goals for the day
  • Do not look at P&L- Passed
  • 0 FOMO trades- Passed
  • 0 Emotional trades- Passed
  • Engage deliberate thinking in all trades- Passed
  • 2 trades max today - unless very strong setup and you won at least 1/2 trades - then 3 trades max- Passed
  • Abide by your trade management standard- Passed
  • Do not get greedy with any of your trades- Passed

Today felt like a test on my psychology improvements. I got tempted on all of these rules today (with the exception of deliberate thinking). I was able to fight the temptation and stand strong though.
  1. First of all, I wanted to look at the P&L so bad after I lost the second trade, but what would that accomplish? I would just start to focus on the $ that I lost even though it's just one day. Historically speaking, thinking about my losses has gotten me more losses, which is the reason I added this into my psychology goals in the first place . I had to walk away for sure lol
  2. Second of all, I wanted to take a 3rd trade soooooo bad. I was sooooo sure that a reversal was going to happen, and that it was going to be big. I wanted to set an order for 4899 with ~25 pt target. However, I lost the first 2 trades so there was 0 justification for me to enter into a 3rd trade today. This is good because I would've lost the 3rd trade as well

Overview
This is a day when fundamentals should've trumped what the chart was telling me. I need to quote @Inletcap on something he said at the ES thread because it made me realize how my focus was on the wrong things today. This is specific to the ES but also applies to the NQ.


Inletcap View Post
Sector rotation is very normal. All markets are showing +ve. Healthcare represents a small slice of the S&P makeup and was #1 performer for several years. MSFT at ATH after 15 years is no small event. Consumer cyc and durables trading leadership back and forth is a clear sign of strength so long as trend is positive. Utilities are a play on interest rates and industrials have held their own. Energy and materials are their own animal but after a long decline are performing in face of a rising dollar- is that a negative- hell no! Real Estate- the "new" sector- well, just look at the data from last week- starts, permits, applications- all 6% yoy +. So, now we are just waiting for financials- already seeing the brokers posting up- money centers are the missing link- watch closely there for clues (WFC is news driven so throw it out)

I see nothing bearish about the graph you have displayed- I see no defensive "leadership" (healthcare, durables and utilities leading is not occurring)...

My 2 cents per your request

And that's what experience looks like in trading.

An inexperienced trader like myself prioritizes what the chart says over anything that isn't 'huge news'. In a way this is like looking at a piece of the 'big picture'. But an experienced trader like Inletcap understands the 'big picture' and knows what to focus on to make the right decisions.

Overall, starting the week off with 2 losses doesn't usually feel good, but honestly I feel good today . In terms of things that were in my control I took 2 good trades that had strong signs and followed all of my psychology goals despite the temptations.

My $ losses were due to lack of experience in this environment and wrong prioritization between fundamentals and technicals. As a new trader I'm going to make these kind of mistakes so I can't get upset about that. The best I can do is learn so I'm prepared next time.I'm going to have to adapt on this quite fast because we have some of the bigger NQ players releasing earnings later this week.

See you tomorrow!

Yesterday's excellence is today's standard and tomorrow's mediocrity
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Last Updated on September 4, 2017


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