Journal Entry (6/22)- The Quest for Non-Correlated Strategies

As much notes and charts snapshots that I took today, I still don’t know where to start. In this business, you have to adapt or blow out. Remember: do not associate money with flashing green and red lights and respect the commodity. Money management is a key attribute of an elite trader.

1) In the morning, I set a wide stop loss on my long silver position. Why? Probably because I didn’t want it to trigger. The stop was too wide and got me out at a low price and of course silver was volatile and went up. Don’t let your bias for something cloud your trading judment.

2) OJ went parabolic recently, making it a good candidate to short. But as the market near open, I noticed that the bid and ask prices hints that the price will open higher. Thus, I changed plan and put a buy stop on open. However, the stop got me in at the highest price of the day and it fell down. Lesson: follow the plan. Bid/ask prices are fine for the next tick’s price but not for the next few minutes.

3) I tend to overtrade silver and impulsively without a plan. It doesn’t trend well, hard to capitalize.

Should’ve waited for the moving averages to catch up.

4) My initial analysis on the market top for #live #cattle was correct. Get out on the first sign of trouble.

Tried to short soybeans on further grains sell-off spilling over from corn and wheat. But it was on impulse and I did not pay attention to how it was using the bands perfectly, next time, wait till it fall outside the band to short. Also, get out on the first long candle with volume.

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