Journal Entry (6/21)- Goldman Sachs Traders Lost Money on One Day in First Quarter

Euro FX 1-Day (1-min) Chart

1) Sept. Euro FX has generated a lot of interest (volume) ahead of the Greek vote. Continuation pattern along the upper band, attacking the heart-line. I opened a long position on a bounce off the heart-line using a tighter stop loss for currency of only 0.006. Will be looking to sell on fact (Greek vote).

2) Long July Lean Hog ahead of the Hogs and Pigs report Friday. But my stop loss was too tight and a slight volatility  triggered off and I had to re-buy costing hundreds in commission. Take more risk than the amateurs as they will have their stop losses very tight. I loaded up because no signs of pull-back, continuation of the trend awaiting Friday’s report. Will look to sell on Friday’s news.

3) Corn was an impulsive trade today. My emotion got the best of me as triggers for cattle, feeder, and hogs just went off and I was looking to revenge trade. Corn turnaround overnight without me noticing and I hopped on late. Corn stopped out after falling outside of the bands. When something has fallen hard as corn did, the market does not forget. Remember silver!

4) I am stretching out my buying power too much, less than 90% is preferred.

5) SPY, I shouldn’t got in so late but I was expecting the usual spike of interest at the end of the day so I went long as a day-trade. As a general rule of thumb, get out on the 3rd volume spike.

6) Hang Seng China Index

Hang Seng 30-Day Chart

Hang Seng (practice), nearly a 1% gap out of a descending channel. The magnitude of the gap is significant considering that the index fell only 8%-ish over 30 days. The open was hectic with a lot of volume on the first minute alone. The burst of activity is not necessarily a new trend and should’ve waited on further confirmation. The burst of activity makes this a high priority target. But a high magnitude gap up, rally  out of a descending trendline is bullish. Will find out later if the decision to open the position was good or not.

7) Feeder and Cattle flashed some market tops signals today, my stops for feeder also went off. Pretty sure other traders’ stops went off too as some raise their stops. For live cattle the volume was not where near the levels of the sell-off at the 52-week high. And the moving averages have not even begin to turn up. Thus, still room to grow.

8) Sept. Cocoa

Sept. Cocoa: 30-Day (30-min) Chart

Cocoa was a trade that was done after my protective losses for #feeder, #cattle, and #hogs went off. After seeing profits evaporated, I was very emotional and should’nt have jumped into a trade so quick. Good things about the chart but here is what I didn’t noticed: 1] The moving averages have began to diverge already 2] it’s a bear flag and I should’ve waited waited for a break above the top of the flag. The moving averages have turned up also, thus, this is not the middle of a trend change, perhaps near the exhaustion of a rally. Be careful.

Solution: I will look for more high probability targets before I need them. 

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One Response to Journal Entry (6/21)- Goldman Sachs Traders Lost Money on One Day in First Quarter

  1. lima99us says:

    Nice daily entry on the bounce off the bottom band, tight band. 0.5% magnitude gap breaks clean 2200 and the resistance line.

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