Day Trading Blog: 05th December Friday

Friday, December 4, 2009

05th December Friday

Goals for today:

Earn at least 40 Points by entering and exiting short and/or long trades on a 1 min FDAX chart inside a Decision Point Area projected from the highs and lows from the 5 Min Chart.
Earn at least 100 Points by entering and exiting short and/or long trades on a 1 min CL chart inside a Decision Point Area projected from the highs and lows from the 5 Min Chart.
Earn at least 10 Points by entering and exiting short and/or long trades on a 5 min ES chart inside a Decision Point Area projected from the highs and lows from the 5 Min Chart.
Don't make anymore trades once the profits are cashed in.

Plan to archive these goals:
Determine trend, entry and exit points, times where I have to make a decision.

Expecting the trend from thursday evening to continue in the Crude Oil market / EURUSD so good entries 1.30 am or after 3.30 am. At 5 am to 6 am looking for a reverse so going short into the NFP news then after 9 am long.

On the FDAX Bullish in the morning (long after double bottom) and bearish or pause after 5 am. Like last NFP news 1 month ago we could see a sell off but since we are already below 200 ema a rally is also possible, anyway a rally after 9.00 am is most likly. For the Currencies (NZD, AUD, EUR) and Gold I am looking forward to get a good price after the NFP news for a swing trade long.

Profit 40 Points MTP Manual DP System FDAX
Profit 60 Points MTP Manual DP System CL
Profit 1 Points MTP Manual DP System ES

Well it was not really a bullish morning, but also not bearish anyway my system told me to take a nice quick long trade and two trend trades. Nevertheless we had a double bottom before the NFP news came out, so I went long.

After such an impressive 100 points move up its important to know where the next target is, if a news event pushes the prices into this target zone in a matter of 1-2 minutes chances are very likly that the trend will NOT continue in this direction as a double top or bottom is formed. Even after News events that push prices clearly outside of any support/resistance area, the trend will also not go forever but pause or even reverse at 3 new swing highs or lows. Thats happened today, price went again up on 9 am as predicted using last weeks chart but then the trend stopped at the 3rd higher high (which was also yesterdays high and the important 9.45 turn around time that happens every friday due to the 10 am news).

From that point I made a logical decision: this morning price sold off slowly after spiking up, all news got released so all major players are already long and what to cash in some profits before they go in the weekend, so I went short after the 10 am trendline break. This concludes what I learned this week:

Only stay in a trend when its gradually rising, if there was a spike up chances are high that the void will be filled.

No comments:

Post a Comment

Trading Rules:

how to trade profitable? with KSE. knowledge, strategy, execution.
Knowledge: You need to buy low and sell high. So I wait for the price to first go to a prior support level on the daily, 4h, 1h chart.
Strategy: Timing is important so I trade when there is a good setup on the dax, s+p, nasdaq or oil market. My goal is to make few trades with high risk reward, that is archived by either holding a trade till the market closes or reaching a level that sets up a counter trade.
Execution: Usually there is only a 20 point risk involved, so I try to get into a prior support level on the 10 min chart and automatically set a stop and multiple take profit targets.
All the little details how to trade better are listed here but I like to keep it simple: just enter the market at prices with a target that it at least 3 times the initial risk.

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.