Live Journal Exercise – Learning to Trade an Edge like a Casino

[Mike B 624]

February 13, 2019 - $MU (2 Trades Outside Edge)

Today is one of the days I lost my battle against FOMO. Three 5 min ORBs all of which had awesome setups feed into my urge to trade. $MU met my trade criteria, but pasted my stop loss before providing an entry point, which usually means I do not trade it because the stock is choppy. 

Instead, I decided to trade outside my edge when I saw $MU consolidate at the 9 SMA and start moving back up. When it broke the open of the previous candle on the 2 min chart, I entered, but forgot to move my stop loss to the new point I wanted resulting in my $ risk being more than I wanted. I decided just to exit the trade, reset the stop and move on from there with my plan. I took out a portion at the high of the day, I then took out another portion at another Resistance level, I exited when the stock engulfed on the 2 minute chart. 

After pondering the day and reviewing the trade later, this was good trading with regards to risk management and profit taking; however, this was not within my edge and my plan for the day.

Sample Set Results

      P G S G S 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20



[ecadaret 14]

What are you using for your trading analysis?

[Mike B 624]

15 hours ago, ecadaret said:

What are you using for your trading analysis?

I use OneNote and Excel.

[Mike B 624]

February 14, 2019 - $MU (Stopped Out/Outside Edge) 2 days in a row I have traded outside my edge.

Items in Bold are my analysis done during lunch. After reviewing the trade and getting it ready to post, I noticed I was making a fatal error unknowingly to myself. I was forcing the trade to be within my trading edge, because I have not had the week I wanted. I originally determined this trade was within my edge; however, it did not meet risk analysis, so I should not have taken the trade. 

Sample Set Results

      P G S G S 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Edited March 1, 2019 by Mike B

[Mike B 624]

February 15, 2019 - Traded in Simulator

February 19, 2019 - $JD did not meet a 15 min ORB, but it had a great setup for a 5 min ORB.

Sample Set Results

      P G S G S 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Edited March 1, 2019 by Mike B
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[Mike B 624]

February 20, 2019 - $BHC (Stopped Out) & $BHC (Stooped Out)

Very interesting learning day today. The stock met my trade plan and entry criteria 3 times. I took the the trade the first 2 times and got stopped out both times. I packed it in for the day and the third entry and move in my direction right to the profit target happened even before I took take a screen shot. 

Although it moved in my direction, I had to remind myself that I traded well, executed my risk management well, and up until I saw the move on the chart, I controlled my emotions well. Additionally, I had to remember that this time it moved in my direction; however, it was just as plausible that the stock would have broken all the moving averages and gone to the long side for the same big movement resulting in my account being blown up. 

No matter how painful the past 2 weeks has been, facing these back to back to back losing trades is exactly why I wanted to do this sample set. 

I pretty sure I heard somebody say Day Trading is not easy, I am finding out that might just be an understatement. 

See ya tomorrow.

Sample Set Results

      P G S G S 6 7 8 S S 11 12 13 14 15 16 17 18 19 20

Edited March 1, 2019 by Mike B

[Mike B 624]

February 21, 2019 - Nothing today

I had $CAR, $CGC, and $MU on watch; however, nothing met my criteria. $MU had a nice Bearish engulfing crack and $CAR had a great double bottom.

Sample Set Results

      P G S G S 6 7 8 S S 11 12 13 14 15 16 17 18 19 20

Edited March 1, 2019 by Mike B

[Rob C 826]

It’s great to see you have the discipline NOT to trade (force a trade). That is my biggest struggle.

[[email protected] 4]

Mike B,

Amazing detail on your trade plan. Big props to you for that.

I have a couple questions though regarding your 15-minute ORB strategy (from your original post):

In the Indicators section:

1. You mention 'small share size with high volume' - what does that mean?

2. Regarding 'Has a direction upward or downward (higher highs, higher lows, lower highs, lower lows)' - is that on the 5-minute chart or 2-minute chart or 1-minute chart?

In the Confirmations section:

1. Regarding 'No large wicks/candles (wick cannot be larger than body, candles body not larger than ½ ATR)' -  is this for the 15-minute candle I assume?

 

Anyway, awesome journaling! You've got lots of success ahead of you.

 

-Jamie

[Mike B 624]

On 2/22/2019 at 7:18 AM, [email protected] said:

Mike B,

Amazing detail on your trade plan. Big props to you for that.

I have a couple questions though regarding your 15-minute ORB strategy (from your original post):

In the Indicators section:

1. You mention 'small share size with high volume' - what does that mean?

2. Regarding 'Has a direction upward or downward (higher highs, higher lows, lower highs, lower lows)' - is that on the 5-minute chart or 2-minute chart or 1-minute chart?

In the Confirmations section:

1. Regarding 'No large wicks/candles (wick cannot be larger than body, candles body not larger than ½ ATR)' -  is this for the 15-minute candle I assume?

 

Anyway, awesome journaling! You've got lots of success ahead of you.

 

-Jamie

Jamie,

Thanks for the post.

1. I am looking for order flow in the time and sales section to be consistently moving with the majority of each transaction being at 100 or less. 

2. I am looking at the 5 minute chart. I especially looking to make sure the second and third candles are bouncing of the VWAP. 

3. Yes the no large wicks/candle is for the 15 minute candle.

 

[[email protected] 4]

Hi Mike,

Thanks for the reply/clarifications! 

 

-Jamie

[Mike B 624]

February 25, 2019 - $JD (Partial)

Had a good setup on $JD, took a Partial and then the stock moved back to the break even point, so I exited in accordance with my profit taking plan. After one more drop and pullback $JD finally moved to the profit target I looking for. Sometimes it works, Sometimes it doesn't

Sample Set Results

      P G S G S 6 7 8 S S P 12 13 14 15 16 17 18 19 20

Edited March 1, 2019 by Mike B

[Mike B 624]

February 26, 2019 - $GE (Hit Profit Target)

Had a good setup on $GE, I altered my profit taking plan after entering because I knew the $GE was trading within a small range. I was looking to take profit at or below the MA on the 5 min chart. The stock had a quick drop below where I covered some and when it quickly popped back up to which I exited. 

Sample Set Results

      P G S G S 6 7 8 S S P G 13 14 15 16 17 18 19 20

Edited March 1, 2019 by Mike B

[Mike B 624]

February 27, 2019 - Nothing today

I was watching $MYL, $SE, $ENTG. Nothing met my trade plan.

Sample Set Results

      P G S G S 6 7 8 S S P G 13 14 15 16 17 18 19 20

[Mike B 624]

February 28, 2019 - $JD (Hit Profit Target) - Than the bad news came when I looked at my closed position and saw the account number was my simulator account.

Huge trading error today by not verifying I set my order setup back to my live account. I am counting this as trade for the sample set only because for the entire time I was in the trade I thought I was in my live account. It wasn't till I opened my closed position that I realized it was Sim.

Sample Set Results

      P G S G S 6 7 8 S S P G G 14 15 16 17 18 19 20