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Naturally that's what I wondered yesterday after reading that, and the first thing that came to mind is that it depends on the situation; where is price is right now, and what prices are we likely to visit before reaching these LVNs or HVNs? (These are the questions I'd ask myself before targeting an Area of Low Interest or an Area of High Interest). You have to "think" one step ahead to catch the move to the LVN or HVN, and I imagine entries could vary depending on chart structure, volatility, etc.
1. Review daily goals. Make them the absolute focus of the trading day by keeping them in mind, and focus on accomplishing them in order (1 goal at a time). = ✓
2. Re-adjust LVNs and HVNs in the daily chart if necessary. Don't put effort into creating hypothetical scenarios, particularly don't entertain any big ideas of what price could do. = ✓
3. Look at and note/write down scheduled news release times. = ✓
4. Practice execution and holding trades in SIM. Get as ready as possible. Practice both trend and range plays. = ✓
5. Meditate for at least 10 minutes before the cash open / trading session. The longer the meditation, the better. Be sure to be in a meditative state by 9:30AM. = ✓
Journal Structure:
Reminder:
The 4 Stages of Trader Development:
Stage 1: Unconscious Incompetence Stage 2: Conscious Incompetence <-- I am here
Stage 3: Conscious Competence <-- This is where I want to be
Stage 4: Unconscious Competence
It is currently important for me to be conscious and aware of my behavior and actions before and during the trading session, so I can advance to Stage 3. Advancing to Stage 3 and staying there requires deliberate and uncomfortable practice. I must push my boundaries and fulfill the goals below. As long as I meet these goals consistently, I will be on the right track.
Goals ("Check" answers):
1. For my planning and preparation for the session, I only re-adjusted and/or acknowledged LVNs and HVNs in the daily chart, and translated them to the shorter time-frames. I did not come up with any hypothetical scenarios, as they've proven to negatively effect my bottom line. = ✓
2. I made a trading decision after deliberately identifying dominant strength, dominant weakness, or range-bound conditions within the first 15-20 minutes of the cash open. = ✓
3. If today was range-bound, I took at least 1 trade that was appropriate for the conditions. I applied and executed my trading range strategy. = ✓
4. If I took a trade today, I let my profit target or stop loss get hit. I did not interfere with the trade(s). = ✓
Did I make any mistakes today? If so, what did I do wrong, and why? (specify): -
What could I have done better?: I think the one thing I could've done better is my execution: 3038-3039 were better buy prices, and after we capitulated down from 3043 after hanging in the 41's and 2's for so long, I should've realized that the market had more potential to the downside as a consequence. I didn't recognize this in time, and bought at 3040. To me, this price was in-between too early and too late. With that being said, I definitely did the best I could.. I was just a point off from a green day.
Possible actionable solution(s) for the mistake for future reference: Be more patient and fight for price during range days, and pay closer attention to price action and mentally "update" the most likely implications of it's behavior.
Do I continually make this mistake? -
Additional notes: Besides the execution, everything went very well. I did everything that I was supposed to do before and during trading. I just wish I was a little more patient and vigiliant near the end of the session..
What was especially great about today is that there was hardly any room for my bullshit because I followed through with my process and my strategy. I accomplished all of my goals- I may add another one related to vigilance/paying attention near the end of the session for execution purposes.. On the other hand, I may just need to take small breaks at a time instead.
I assumed that because it was 2PM, it was therefore less likely that a move like that could occur to the downside past that low (low and responsive activity in the RTH session). I got in earlier than I should have in case responsive buyers came in right where I entered- we had a hard time breaking 3040.75 for awhile, is why. I bought below todays ETH and RTH VAL, and near an LVN where longs could enter. I also bought above the previous sessions ETH VAL.
I didn't look at the 60 minute chart, but I was keeping my eye on the 15, and it didn't look alarmingly bearish to me. It just looked like a trading range. I think price was trading below the RTH and ETH session open, though. I never considered that.
*edited and added segment* I'll be more careful trading after 12PM from now on. Ever since I extended my trading hours, I've found it more acceptable to take positions later in the day, which is typically an un-wise thing to do. The trade I took would've been much better in a different context (at 10:30AM, with a little more volume)..
As for my entries, I could make them more process-oriented or automated. I need to figure out "entering before, at or after" (a level of interest) and in which conditions which approach is more appropriate.. I may have to eliminate trading 'before' all-together, given my small stop loss size, and perhaps just focus on getting the best price possible. However, I noticed when I did this in the past, I missed many opportunities. It seems executing is a matter of correctly interpreting how things have played out during the session, and in this stage in my trading career, it's difficult for me to gauge. I need to delve into execution a bit more. I'll figure it out.
"The reason so many fail is because they have not learned how to lose. Once you learn how to lose in the market, you are on your way to success. Sounds crazy, but it’s how we learn. Why do (did) people spank their kids for misbehaving or why are you fined or punished for your wrongdoings? The market will punish you financially for your wrongdoings. If someone asked me what it takes to be a successful trader, I would tell them to open an account (not a BS demo account), trade with money that hurts if they lose it all, and start trading. When their account is gone, they have learned all the things not to do, and their mind has dealt with the feeling of losing. If they open another account and fund it again, they will be a much better trader. They got spanked by the market, just like they did as a kid, and now know what that feels like. Without that experience, they will never know what it feels like to watch their account vanish. They will have lived through an experience that nobody can understand unless they also go through it. That trader will forever be changed for the better.
If you think what I wrote is nuts, consider that over 90% of traders fail. What does that tell you. It means you are more than likely going to be part of the 90%. They didn’t fail because they were making money, they failed because they lost all their money. They are the ones posting that day trading is a suckers game, it’s rigged, it doesn’t work, etc. They have not accepted responsibility for their failure and blame the market. They have not looked at themselves because it’s too painful and have not learned how to deal with losing. They expected this to be easy and to get rich, just like they see on YouTube, and it didn’t workout. Don’t be that guy (or gal). Accept that you are going to fail, but understand why it’s happening and what you did or doing wrong. What assumptions did you make that didn’t work out. Was it really a good trade or could you have had better trade location. Did you get in too early, too late, where you listening to others or the news (all bad ideas). Were you too impatient, did you go too big, did your consider worst case scenario. Were you fighting the trend, did you have a bias, and lastly, and most importantly….did you hang onto that loser too long, and did you get out of that winner too fast. I know the answer to that question. Good luck."
1. Review daily goals. Make them the absolute focus of the trading day by keeping them in mind, and focus on accomplishing them in order (1 goal at a time). = ✓
2. Re-adjust LVNs and HVNs in the daily chart if necessary. Don't put effort into creating hypothetical scenarios, particularly don't entertain any big ideas of what price could do. = ✓
3. Look at and note/write down scheduled news release times. = ✓
4. Review entry rules. Practice execution and holding trades in SIM. Get as ready as possible. Practice both trend and range plays. = -✓ (Didn't do this for long)
5. Meditate for at least 10 minutes before the cash open / trading session. The longer the meditation, the better. Be sure to be in a meditative state by 9:30AM. = ✓
Daily Goals:
1. For my planning and preparation for the session, I only re-adjusted and/or acknowledged LVNs and HVNs in the daily chart, and translated them to the shorter time-frames. I did not come up with any hypothetical scenarios, as they've proven to negatively effect my bottom line. = ✓
2. I made a trading decision after deliberately identifying dominant strength, dominant weakness, or range-bound conditions within the first 15-20 minutes of the cash open. = ✓
3. If today was range-bound, I took at least 1 trade that was appropriate for the conditions. I applied and executed my trading range strategy. = ✓
4. If I took a trade today, I was patient and waited for the best price. I didn't execute too early and/or before Areas of Interest. = X
5. If I took a trade today, I let my profit target or stop loss get hit. I did not interfere with the trade(s). = ✓
Did I make any mistakes today? If so, what did I do wrong, and why? (specify): With the second and third trades, I simply entered too early.. With the second trade, price tested 3042 (which was a short entry I was already considering), and made a lower low of 3040. I checked the 5 minute chart from a larger perspective, and saw a double top pattern. I thought it wasn't likely price would re-visit 3042 again, and considered 3039 a good short- I acknowledged this price was a little late, but I was willing to take the risk. I went short there and got stopped out, then the market tested 3042 again and absolutely took off to the downside, which had me frustrated. I then put another limit sell order at 3039, and I was even more confident that the market wouldn't even test 3041 this time. It did, and I was stopped out to the tick and the market reversed in my direction (not by much, though). So yeah.. I brought this on myself by entering too early in these type of conditions. What's even more upsetting is the fact that I came up with entry rules last night, and I didn't follow them. I didn't today because of FOMO brought on by the relatively high volume and volatility.
Possible actionable solution(s) for the mistake for future reference: I really have to buckle down from now on and fight for price. It needs to be more of my focus.
Do I continually make this mistake? (In this case, I'd have an intervention and dig deep, which is out of the bounds of this journal structure): It seems this is the case. I enter too early on trades that would be winners, and I'm getting sick of it now. Disgusted with my performance, and frustrated with the MES. I do feel much better than I did 45 minutes ago, though. If I end up trading tomorrow, I'm going to put more attention on "entering later." It's obvious that I need to be more patient with my entries.
Additional notes: My first trade was actually pretty good, it just ended up being a loser. I traded in the direction of the short-term trend (initiative shorts at the open), and went short on a pull-back to an LVN. The level held up for awhile too- I thought it was more than likely to succeed. We grinded up to my stop loss instead.
The numbers you're using in your review today are all off by 100 points
(Which is understandable given your heightened level of frustration)
Your comment "I checked the 5 minute chart from a larger perspective,"
Does that mean you looked at a 30 minute or 60 minute chart for confirmation of direction?
Or are you suggesting the 5 minute is "a larger perspective"?
Having asked those questions, I'd like to commend you on the structure you're trying to develop for your morning routine and your journal.
One last thought regarding point #2 of your "Daily Goals":
"2. I made a trading decision after deliberately identifying dominant strength, dominant weakness, or range-bound conditions within the first 15-20 minutes of the cash open." Did you?
If you are following the journal thoughts posted by @wldman, you'll note his reliance on the 60 minute chart when the Monthly, Weekly & Daily aren't giving you a clear answer as to direction.
I'd suggest if you're going to be trading off of a 5 minute chart you need to be trading in the same direction as the 60 minute chart, or at a minimum the direction of the 30 minute chart.
It's difficult to show in a screenshot of one point in time, but if you watch the direction the 60 is moving in (in real time) and only look for entries in the same direction on your 5 minute chart, you should start to see an improvement in your results.
(You can see in my attachment how the ES traded lower on the first 30 minute bar of the RTH session, only to reject the lower prices and close higher on the second 30 minute bar. [The 60 minute chart shows that as a large blue bar, that couldn't extend the longer (3122.50 - 3142.00) 60 minute bar's high @ 3142.00 that closed before the 09:30 Open]
That was the largest move of the morning, (including that 10 point Outside Bar at 11:05 ET)
It's unfortunate that your short got caught by the move of that 11:05 Outside (Down-close) bar.
Trade well,
John B.
R.I.P. John Bottomley (Botts), 1956-2022.
Please visit this thread for more information.
LOL.. I always find myself typing 30-- when typing prices in my trade reviews, and I usually catch this tendency and correct it. I just wasn't paying attention (nothing new).
What happened was I zoomed the 5 minute chart out and it made an almost perfect double top pattern, and then I looked at the 15 minute chart and saw that it was similar enough.. for my standards. I was compelled to short mostly because of this image, though:
And thank you for that. I'll keep it up- I find that it's actually way more time-efficient using this journal structure, on top of it reinforcing my priorities / goals. I can't believe I didn't come up with the idea sooner.. On the other hand, I do like writing.
Alright, alright, I'll check out @wldmans journal. I've been putting off an in-depth read.
When the 60 and the daily are confirming each other, those two over ride the Monthly and Weekly for which participation group is in control. This makes "the flip" on the hourly THE focus point for me as the flip will either confirm the day or it will change control back to the 60, weekly and monthly...should those three be in the same direction. ANY other combination leaves only the 60 in control as the others are too conflicted.
Add in the consideration of not trading against an inside bar and you can get pretty bored and somewhat frustrated when you are focusing on one or two products. Ask @ninjus how it goes when you divide time frames to smaller divisions to find actionable trades as opposed to being patient. He has made some excellent posts the last two days.
This is why Rob trades and recommends trading individual equities and ETF's and why he follows daily at least a hundred names. There is always something to do and it is always beautiful.
