Journal Entry (6/19/11)

So busy watching for breakouts last week that I didn’t take good notes. But here are the highlights of what I need to work on:

1) While watching for breakouts is important, it is equally important to take detailed notes.

2) On my Cattle and Feeder positions, I wasn’t watching and totally did not see the the 0.6% magnitude gap take out two moving averages at once (significant). In a market that moves 1-2% at most in a day, that’s a significant magnitude. If I had noticed the anatomy of the gap, I may have opened more positions.

3) All my impulsive trades failed. These are the ones that I saw on a Twitter or StockTwits feed. Not to take away any bit from those traders and the networks but I perform better when it’s my own set up. I will still use both systems for generating trade ideas but with prep.

4) Rather than aggressively looking for trades, a strategy that has led to overtrading, incurring commission costs. I need to snipe out high probability trades. On Friday afternoon, rather than attempting to stretch my luck, I took a break.

5) Remember: a bear market can become a bull market at any moment and trends can change in a day. Thus, be ready and vigilant to play the reversals on moving average bounces/reversals. Watch for moving averages to converge and the bollinger bands to contract (secondary indicators).

6) Quadruple check every thing (e.g. numbers).

7) Need to lighten up the position sizes to consolidate gains.

8) Be Calm and Steady, only trade when in good health, emotional, mental state of good sleep. And do isometrics and the Jacobian relaxation exercises. Still not turning off phone during trade hours.

9) I’m better at using the one-day chart for entries after a clear setup on the one-year and one-month chart setup.

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