Day Trading Blog

Monday, May 28, 2012

28th May Monday

SHORT Elliotwave on Fdax 7 R
SHORT Elliotwave on Crude Oil 6 R
SHORT Elliotwave on Fdax 5 R
LONG Elliotwave on Gold 5 R

Already LONG Fdax with Target 6357

Saturday, May 26, 2012

Trading Plan: Closing Hour of Bonds will tell how the Fdax will trade in the morning + 30 sec targets

On many days the closing hour of the bonds or signals of the stock market indicies can tell how

the fdax will trade in the early morning:

Targets of 30 sec signals can provide good targets for trades entered on the 3 / 5 min chart:

Week 21 Stocks + Crude Oil + Gold Sideways

Friday, May 25, 2012

SHORT Elliotwave on Dow 8 R
LONG Re-Entry on Fdax 3 R
SHORT Elliotwave on S+P 2 R
LONG Re-Entry on Gold and Crude Oil 3 R
LONG Elliotwave on Fgbl 7 R
LONG 50% Entry on Gold 2 R
SHORT Reversal on Ftse 3 R
LONG Re-Entry 3.5 R
LONG Re-Entry 3 R

Already SHORT on Dow with Target 12383
Already LONG on Fdax with Target 6365

Thursday, May 24, 2012

24th May Thursday

LONG Breakout on Dow 4 R
SHORT Reversal on Crude Oil 13 R
SHORT Elliotwave on Nasdaq 4 R
LONG Elliotwave on Gold 1 R
LONG 50% Entry on Crude Oil 2 R
LONG Reversal on Gold 10 R
LONG Elliotwave on Fdax 4.7 R
SHORT Elliotwave on Fdax 7.5 R

Already SHORT with Target 6260 on Fdax

After 11 am SHORT Setup on S+P with Target 1297
Before 10 am LONG Setup on S+P with Target 1324 (1322 is DP)
Before 3 am SHORT Setup on S+P with Target 1308.50 / 1300.50
Before 3 am SHORT Setup on Gold with Target 1553 / 1547

Wednesday, May 23, 2012

23th May Wednesday

LONG Elliotwave on Gold + Nasdaq 5 R
SHORT 50% Entry on Dow and Fdax 4 R
SHORT 50% Entry on Gold 10 R
SHORT Elliotwave on Fdax 8.7 R
LONG Elliotwave on Fgbl 6 R
SHORT 50% Entry on Crude Oil 1 R
SHORT Reversal on Gold 5 R
SHORT Elliotwave on Fdax 10 R
LONG Gap Fill on Fdax 3.2 R

LONG Target on Fdax 6445, Potential Reversal to SHORT above 6367

Already SHORT Crude Oil with Target 90.95 / 90.56
Already SHORT Fdax with Target 6323 / 6300 / 6254

Tuesday, May 22, 2012

22th May Tuesday

SHORT on Nasdaq 4 R
LONG 50% Entry on Gold + S+P 6 R
SHORT 50% Entry on Crude Oil 3 R
LONG 50% Entry on Gold 2 R
LONG 50% Entry on Fdax 5 R
SHORT on Gold 10 R
SHORT on Fdax (50% Entry or Short Signal on Ftse 3 min after 4.30 news) R
SHORT on Gold 5 R

Outside Gap Up and Decision Area above 6396 on Fdax, looking forward to fill
the gap at prior days high (6369) or prior sessions close ( 6340) before continuing the long trend.

Trading Rules:

Besides all the rules I learned I mainly use this guideline to trade profitable:
To avoid making mistakes as outlined here, I semi automate my trades > when the price is in a setup area I tell my trading software to buy or sell at a predefined low risk event, this reduced the stress as I dont need to monitor the markets every second (especially during times where multiple markets are in good setup areas)
I minimize risk by entering only at setups when the price is far away from resistance levels, furthermore I wait for bounces of certain support levels to get into fast moving trades that allow me to place a breakeven stop soon.
I try to stay calm and not get fearful, angry or jealous. I will identify negative thoughts and everytime one of these thoughts come up I ask myself why I have it and if it is valid:
List of negative thougths:
* I dont know this market situation lets only make a trade on the demo account
* Yesterday or Last week I had to wait on todays weekday for a certain event before I could have entered a trade (although its wise for imporant news events, its still better to trade any setup rather than setting up certain times when to trade)
* Market X has to first make this before I can enter on market Y
* Market is moving very fast I have to get in earlier otherwise I will miss the move
* Market breaks a level, makes me think I can enter with the breakout method rather than waiting for a pullback and use the re-entry method
* The next target price level will be not strong lets simply let the trade run.
* The next target price level will stop the trend lets exit and not use my exit rules.
I also monitor all US indicies, fdax, gold + crude oil and try to enter at the strongest market that still has upside potential.
The highest risk reward setup happens when price is at or just below prior swing low or at 50% of last upswing (ideally on a clear AB Correction on the 10 min chart).
At such reversal levels I enter on a confirmed upmove (price closes above the high of prior two 30 sec bars and is therefore colored green on my 30 sec charts).
I trade long re-entry setups if we are still long on the 10 min chart, after price is at or below the last minor swing low on the 30 sec chart. On very fast moving markets there is also a profitable re-entry chance above a red 30 sec bar.
If price trades sideways for some time I also trade long breakout setups on the strongest market (identified with a 1 min RSI screener) if the price on 30 sec charts breaks for the 2nd time above the high of the prior two 10 min bars.
I place a 10 ticks initial stop and trail this stop with below the lowest low of the last two 10 min bars (sometimes this stop gets hit but then price goes back above the stop loss level, in that case I watch the price action and only exit the trade after the prices breaks down the 2nd time below my stop loss level.
As an alternative I use an automated 3.9 times atr trailing stop on 3 min chart.
My first target is on counter trend trades is the 50% line of last swings range. If a trade goes above that 50% line the most common goal for an uptrend is a decision point area and / or the closing price of the highest 10 min bar of the prior day.
On trends above the decision point area projected from prior days high I exit my position on a range extension (current day low + yesterdays or day before yesterdays days range). If the trend continues above these range extension targets I let the trade run till end of the session or till high of the week or the last weeks range plus this weeks low.
I use intermarket analysis and always try to go long on the strongest market long and to go short on the weakest market , this way I look at the EURO for reversals but most of the time I enter crude oil or gold. I also monitor support and resistance levels on the DOW or S+P to enter and exit Fdax trades.
I start trading the fdax after 3 am usually with an opening trade (either waiting for 50% entry or a DP reversal or if the reversal already happend a breakout trade) and if there is a clear trend I also trade crude oil or gold in the early morning.
On Crude Oil and Gold I take trend trades in the morning and after 8.30 am also trend changes
Usually I trade the DOW or Nasdaq after 9 am with an opening trade (either waiting for 50% entry or a DP reversal or if the reversal already happend a breakout trade) and after 3 pm the closing trade.
For the S&P I consider trading long if the prior day closed above the pivot point or counter trend short if the price is too far away from the pivot point so in general the market direction from this newsletter is correct.
On the lunchtime hours 6 am to 7 am (8 am) and 12.15 pm to 1 pm (2 pm) I just trail my stop and dont initiate new trades.
All rules vice versa for short entries

The Legal bit

Risk Disclaimer and Disclosure Statement

Trade at your own risk. The information provided here is for Education only and is of a general comment only and neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person's investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. You should seek appropriate advice from your broker, or licensed investment advisor, before taking any action.

By reading this Blog, you acknowledge and accept that all trading decisions are your own sole responsibility, and I cannot be held responsible for any losses that are incurred as a result.

There is risk of loss in trading and investing. All trade decisions are your own sole responsibility.