Friday, May 8, 2009

Thursday 05/07/09 - Pullback on Profit Taking

I was busy with web development again today, and wasn't around to trade the first hour. I placed a few small trades during the course of the day ending up with a net gain of +6.75 points. I had some solid entries but left a lot of profit on the table so I would have to grade my performance as a B- today. This could have easily been a +10-15 pt day. Here's how the stats broke down today:

% Break-Even: 9.09
% Win 72.73
% Loss 18.18
Avg Win 1.16
Avg Loss -1.25
Largest Win (pts) 2.00
Largest Loss (pts) -1.50
Total Win (pts) 9.25
Total Loss (pts) -2.50
Net Gain/Loss (pts) 6.75

A pullback on profit taking was expected so no surprises today. 898 area held support. I'll be keeping an eye at the 894, 887, and 879 areas for support if we head lower tomorrow. On the upside, I would love to see 940! Not really much else to report except that my schedule is working out really well for me and keeping me out of trouble. An update on my friend who's learning how to trade from me: he has been averaging +5 pts per day for the past two weeks, and ended today with a +8 pt gain. Just want to reiterate that I taught him only the basics on price action/trend, and did not put even one indicator on his chart. The results have exceeded my expectations. He has been trading on Infinity's Sim, and will be funding his account in the next month or so. I'm looking forward to this real $ results, and am confident they will be similar to his Sim results since he has the proper mindset, and is using tight risk management in his Sim trading (6-8 tick max stop-loss).

Employment Situation (Nonfarm Payrolls, Unemployment Rate, Avg Hourly Earnings, Avg Workweek) released tomorrow morning at 7:30 AM (central)

On to the charts...

ES/$TICK (3-Min) - Gap filled by 9:06 AM.

ES (Daily) - Perspective


  1. 5 points a day gain? Makes me wish I had a tutor when I first started. I was probably losing 10 pts a day lol.

  2. Sounds like this method is really working for you well!

    Have you looked back historically at all on some of the crap in mid '06 to see how it fares?

    Just curious... if shit markets like that have happened before they can happen again! Better prepared than sorry!

    Anyway, thats really solid performance man. Simple idea too. Thats key IMO. Keep it up.

  3. You and me both; wish I had someone to mentor me when I first started!

    Matt, I haven't checked the method in the 06' market, but fundamentally, the method makes sense to me since it's based on supply/demand, and momentum. As day traders, we're not trading "value", but momentum, so I believe our method has to have a momentum analysis component.

    Btw, taking setups off the 3-min charts is working out great man! We can chat on Yahoo IM over the weekend if you wanna bounce ideas. I'll email you today's chart later; so far I've booked 5.25 points, and am riding another trade which looks like it will net 5-7 points.


At the minimum, please provide your name or Twitter handle when posting comments. Do not post as Anonymous. Comments that contain links to commercial websites will be marked as spam.