The action heated up in the Nasdaq today and the day was ripe with opportunity to trade. This is the type of environment I will eventually thrive in as a trader. For now, until I can consistently recognize my correct trading picture and only enter when my correct trading picture presents itself, I will simply struggle.
Today was so forgiving intraday, and so full of opportunity that I was still profitable. That is until I took two poor trades and was slapped about in the closing trade. This is embarrassing to post, especially on a day like this, but here are my trades:
If I cannot manage my impulsive order entry, then I cannot advance to the next stage of trading. If I cannot advance to the next stage of trading, then I may find myself turning tricks behind the local Kroger. In short, priority #1 is very disciplined trade recognition and execution to achieve a 70% win rate. The profitability is irrelevant in the first stage. It is merely a foundation for adding size and trade management.
My stocks took a hammer and I was down over 2.5% on the day even though I came into the session with over 50% cash. Even the slow stuff took a hit, but the brunt of it was felt in Twitter. Momentum is once again the target of fast selling. Alcoa beat and ripped after hours, the Nasdaq found a bid, the Chinese are up to bat with PPI overnight, and we have FOMC minutes tomorrow afternoon. It is about to be very interesting up in here.
Q3 FTW
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Ok, you must forgive me for giving you an advise, but I simply can not watch this anymore without saying few words. Reason being – I WAS YOU not so long ago, and it didn’t end well.
I think you are smarter than me and more skillful, yet you seems to have the same problems I had daytrading ES. You seem to find it challenging and rewarding enough to keep slugging at very short term interval. Overcoming a hurdle, only to find a new one right around the corner. Hoping that ‘this is it’, yet to no avail.
Isn’t it time for you to start asking a DIFFERENT questions?
For example:
Are there any successful day-traders in indexes?
Do you know one, who done it for more than a year continuously and professionally?
Have you seen their brokerage statement? (House, car and bling don’t count)
What if you stick to stocks on daily/weekly time frame (where you seem to do very well), instead of… and bla-bla-bla…you see where I am going with this…
That aside, ask yourself this – why was an index made in a first place?
What is a purpose of SPX, QQQ or any other?
You are a very analytical person… think bigger
What if everything you have been told about index trading is wrong?
Sorry, I am in no position to give a trading lecture, but I’ve been down this dark road before. It led me to dead end, just like every index day-trader before me… Single stocks – thats a different story, but you know it already
This is the type of feedback I was hoping to receive with my full disclosure. Thank you iBergamot for taking the time to post this.
I know a few index traders but to be honest I have never seen their statements.
I have only been at this approach with proper structure for 6 trading days. June I was shooting from the hip more or less.
I will keep this up at least through July.
This evening I will give your questions more thought.
Best Regards,