Today’s trades 10-16-12
Well hey everyone, so i traded once yesterday and twice today. overall i had 2/3 ITM. I’ve been reading Al Brooks books on price action,and it may take me a while to finish them, but they are very informative and i recommend them to everyone who wants to learn just about all you need to know about price action. Price action seems to be an elusive subject that is hard to get the hang of, its easy to learn about it, but you have to know how to apply it to your trading for it to be of any worth. I am confident learning about PA is the way to go, so im sticking with it. One thing i noticed recently was i traded without looking at the Stochastic indicator at all, so i suppose i dont really “need” it as i got into my trades before the %K and %D crossed over above or below the 20 or 80 line. Im still finding and focusing on my time frame, and i believe the 5 min time frame is the one i look for entries best. I sometimes look at higher time frames to see if there are any daily highs or lows near which may indicate a reversal. I stopped looking at the 1 min time frame altogether because it seems to give too many false signals, there may be some traders that can do 60 second binaries, but i cannot, at least for now. I did add a single EMA to my chart for trending purposes, and one thing i did start to notice is when price moves suddenly from the EMA it will return eventually, so it helps me look for additional setups.
My first trade today was based on a large engulfing bearish bar with no shadows that indicated to me the bears were in control, at least for a short while, so i used a 5 min expiry which i thought was appropriate since overall previous price was trending up. My second trade i placed a call as you see on the chart, but i ended up losing this trade because i got in a bit late and used a 5 min expiry :/. If i used a 30 min expiry or actually trusted my strategy without questioning it, that would have been a wonderful winner. I’m trying to improve my entries and reduce my number of trades, which is quite the task, since im tempted to trade all the time. I have to keep reminding myself of my rules and only take the highest probability trades. I still mess up quite often though. Like i have said before, i am not profitable yet, but im willing to work at this until i am. I believe in positive thoughts and i try to keep them positive as i have losers quite often. I will continue to learn about price action and practice practice practice.
