Thursday, January 15, 2009

Thursday 01/15/2009 - Impulse Trades

I was busy with work most of the morning, and by the time I got Trade Station and my trading platform up and running, ES was trading down in the 817 area. I stuck to yesterday's rule of staying out of Long positions below the mid-point; even though price looked really stretched out in the 812-815 area. 813.50 was Joe Baker's downside target and 812.50 is a huge support number since it's December's low. I was expecting that to provide a bounce, but I stayed out of Longs sticking to yesterday's rule.
When I came back from lunch, I saw ES trading in the 835 area, and without analyzing the price action, and without even looking at the balance chart (balance chart plots all the S/R levels like 1st Hr high/low, mid-point, etc), I initiated a short; purely out of impulse. In less than a minute I was stopped out for -2 points. One loss usually isn't enough to drill the lesson into my head, and I re-shorted at 838.25 a few minutes later, and again was stopped out for -2. This time, I paused and switched over to the TPP Balance chart and cursed at myself for a minute since I had failed to follow my rule of staying out of Short positions above the mid-point. But there was also an exception to that rule; which meant I could short around 846.50 since it was a strong area of resistance. I shorted around 841 for a quick +2 point gain. Unfortunately, I got pulled into an impromptu meeting (someone walked up to my desk and started asking questions) and wasn't watching the market when price got to 846-47, so I missed that short setup. I could have shorted a little lower around 844, but figured I would stick to the rule and short closer to 846 since price could easily bounce from 844 to 847 and stop me out. I'm sticking with my 2-point stops. They're doing a good job of keeping me out of trouble. Overall, ended the day down $100 + commission.

IB - Real$ Trade Executions

And on to the charts...

TICK/VIX Chart - 1:39 PM Central

TICK /VIX Chart - End of day

TPP Sync Indicator - 11:41 AM

TPP Sync Indicator - 1:24 PM

Market Balance (5-min)


  1. Well I think you're still making good progress. A 2 pt loss is nothing compared to what you have been known to rake in on one day.

    If we can kill your bad impulses and keep your good instincts I think the LLC will have a solid performing partner.

    But if I keep hearing of these mistakes i'll be forced to hitch hike up there with my baseball bat and oversee your trading for a day.

  2. I think I would definitely trade better with the fear of a baseball bat to the face :D


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