Journal Entry (06/20/2011)- Is There A “Rule of 72” For Days And Weeks?

My recording software did not record my screen well (blurred video) but I took good notes. Remember: money management is also a component of an elite trader.

1) I was looking to add more #cattle positions by using buy stops. But the stops did not even triggered and the order did not get filled.  Once again but a different scenario, buy stops are unreliable. Because I was relying on buy stops, I did not have my desktop set up and organized to trade. it took me a bit longer to execute orders. Lesson: always be ready and vigilant even when relying on stops.

2) During the day, #sugar volume alert came for a continuation of the bull movement. I did not check my email or phone for this alert.

3) I have an obsession for the market even when I’m sleepy and tired. This is fine for investing (e.g. doing research) but not trading weeh weehs. When I’m tired, strategy easily goes out the window when I’m revenge trading. When I make losing trades, I am also more emotional and more likely to trade on impulse. Strategy > impulsive (human emotions). I am in control of my mind and emotions. Breathing exercise? Over-trading on low-probability impulse setups are killing my full potential. Further, I have a habit of cutting losses before the stops (good) and forgetting to cancel the stops.

4) While short-term volatility can be play, the high probability trades are the ones that trend well. Focus on that.

5) I was aware that US stock futures were up at Asian open but turn-around overnight. On that event, I should’ve watched for volume spike on #Treasury bonds and added on confirmation.

6) Should’ve reloaded #Silver this morning as a bargain hunter but maybe it will be in the 34’s again shortly. So, we’ll see. Also on a different silver day-trading overnight, when volume spikes the price was flashing so fast that I did not recognize which way it was moving, causing me to panic. Breathing exercise? Pay attention more to the candle sticks than the prices.

7) I took a nap without setting protective stops for #cattle and #feeder, thinking that the market was close. I’m also unaware the lock-limit specification for the contracts I trade. And how to figure out the pricing. Limit moves are important because I have bought into the limit before.

8) Shorting natural gas was on the fly setup, which works for me if I tape-read correctly. News, fundamentals, and price action do not always correlate. I saw the news that nat gas was time to sell, check the chart. Even though #natgas fell off the moving averages, I was a bit late and in the market a bit is all you need to lose or make money. What I should’ve noticed was the exhaustion of the sell-off in volume and exhaustion price pattern. As in watching for a reversal, as a general rule of thumb, on increasing interest (volume) along with price action, you want to get out on the 2nd or 3rd volume spike.

Further, a dip under moving averages that are not downtrend will be face with tough support lines. Watch for further development on a bounce at 4.

Bottom line: You have to be hungry, to become better.

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