Friday, March 27, 2009

Friday 03/27/09 - Discipline is Key

Closing the charts early today (12:03 PM) with a nice gain of +$740.90. I'm not too excited since I did put on 5 contracts on one of the trades which provided bulk of the profit. I don't normally add to a losing position but I did just that today; I had a hard-stop 1 pt below support, and added to the position when it went against me, and when it went in my favor. Just wanted to experiment with a little more size (I was trading up to 12 contracts in my real $ account back in 2004 so 5 contracts is not out of the question in the real $ account). The key takeaway from today is to stick with the trend, and patiently wait for the market to show its hand before entering a new position. I jumped the gun on my earlier short trades, but was quick to bail for break-even or a tiny gain since I realized I wasn't being disciplined and was entering early before the market provided confirmation. Once I got confirmation, I entered and exited for a quick +2 point gain. Probably should have held on to it for a bit longer, but I have been coding all morning for that IT project which I have to push to Production today or tomorrow, so need to get back to that.

The Blog will be quiet for 2 weeks since I'm leaving this Sunday on a 2-week trip to Geneva, Paris and Dubai. I'll be back in the good ol' U.S. of A on Sunday April 12th, and will resume the regular postings later that week. See ya!

ES 610-Tick bar Chart (Morning Trades)

Open/Unfilled Gap Above at 827.25 - Price came down so close to the previous open gap at 808.75 that I consider that gap filled at this point.

ES/$TICK (3-Min) - Low Avgerage $TICK readings through the early morning climb up indicated weakness.

ES 15-Minute - Yesterday's chart indicated the 808.75 area as support, and it proved to be support today. Low of day was 809.50, at which point price bounced 10.50 points.


  1. Dubai,you lucky dog, I'd really like to see that place, looks like a cool place to visit.

    Have a good trip!!

  2. Enjoy your trip - it sounds like a good time! Hopefully I'll still be around by the time you get back! :)

    Your trading is looking stellar so hopefully this two week break will make you even better.

    However I am disappointed to see you, of all people, adding to a losing position! I can hear you cautioning me over and over again for doing the same thing! I expect more out of you. :)


  3. Hi Stan, you're absolutely right, I should not have added to the losing position. On the positive side, I had a hard stop-loss level on the entire position, the trade was in direction of trend, and I added to it when it moved in my favor as well.

    But I understand your point; I should follow what I preach, and this is the first time in months that I've added to a losing position. I actually wanted to mark up the charts and analyze that specific trade to see how the P&L would have looked if I just exited the position with a 2-point stop-loss and re-entered at a lower price but I still haven't packed so might not be able to get to that.

    Thanks for keeping me honest :)

  4. I was just giving you a hard time, man. You'll still see me adding to "losing" positions because as perverse as that sounds, it is part of my strategy because I am playing pullbacks. However sometimes those pullbacks are actually trend reversals and that's when I get in trouble. Anyway, you know what you are doing but I still had to take a jab at you because I'm a jerk like that!

  5. No problem buddy; I prefer you guys calling me out. It's one of the biggest benefits of having this Blog.

    Btw, I'm at my hotel in Geneva reading Reminiscences; awesome book! I can't believe I've had this book for YEARS and didn't start reading it till now. I'm going to read it, and re-read it.


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