I still feel annoyed at controlled losses, angry if loss is "uncontrolled" like, a human error in placing orders which results in larger loss than anticipated. I do not think I will ever reach the stage of "not caring" at all of losses of my money. I personally do not believe that is possible, at least not for me, if I don't disregard the desire for material things - if that happens I wouldn't be trading anyway.
Whenever I am in losing streak, I compare it to my days of options selling losses, and these losses feel like nothing. A blessing in disguise were those large losses, how they now enable me to feel much better about small losses. I would joke about it to my trader friend, things like "time to line up at centrelink tommorrow.."
Just re-read this entire thread to catch up from my initial questions, to which has been a great read.
A few things I'd like to ask:
1. You mentioned way back in your reply to my first questions that you saved up and self-funded a 10K account which is when you started to see success, before your family + relatives funded you with an awesome 250k and said away you go, but back to the 10K where you started to get some success, what do you call "some success" at this point? Were you relatively profitable, what had you turned the 10K into(if you don't mind me asking). Reason I ask is I'm just curious to see if you could do this well with just that 10K account. There's been many a time I wish I had a wealthy or well saved up family that could kick me off with 250K which would have drastically improved my results and psychology.
2. Your method of trading, you mentioned you had a mentor who helped a lot(another super rare thing to get/find along with a 250K kickstarter!) how much of your method now is his input and your own doing? Where do you get the levels you look at, and do you have targets mind? Like you showed us those charts where it flattens out at midday, but that's all well and good to point out after the fact, do you have some kind of target in mind when its live? What gets you in and out in the moment?
Great stuff! Nice car too!
My levels are based based on price pattern which seeks where institutional orders are most stacked. Same principle as support and resistance, except it's not based on swing high or lows like the traditional TA sup/res. To me those are liquidity pockets to be violated. My first target is between 11-12, at which point I will look at where price has traded to and look to the left to find consolidations, this represents temporary fair value and is where price can be likely to trade to again.
minwa or modest, can you explain the chart a bit please?
Are YM and NQ on different time frames to the bar chart? Is the main bar chart the ES?
Thanks.
The main chart is ZB, the US 30 year treasury bond. The other charts are 1m comparison studies in line on close format just to illustrate the correlation. You see how the bonds consolidated then started their rally before the equity indices started their sell-off....
Thanks Can. Is the point here that because the bonds were flat that this was an indicator that the indices would get sold off?
Yeah I think so, while the ES was having its morning rally, the bonds didn't push lower(usually negatively correlated) then actually started to rise in which the correlation kicks back in and ES comes off again till midday when it flattens out and farts around until the close I assume.
Something like that minwa? I take it that trade isn't always in play as that correlation can not always be that clear cut? It's interesting that you don't use volume either considering your method of trade is to go with the big players/smart money, usually volume is a key component of that, yet you seem to just use more of a time of day type pattern and correlations?
Wish I was where you were at
Yesterday was interesting.. the Bund and FESX were in unison so it was a bit more difficult to use the bonds for confirmation. But even though they were moving together most of the time, at some points they would diverge briefly and that provided some good opportunity to make a trade on the index.
Although I witnessed the above I did not trade it because the divergence did not occur at a point where my setup was forming.
Also important to note although I saw these as opportunities because of the size of the sample it could have easily been random so DYOR
YM Puts in a double top, lower high
NQ Has three attempts to go higher and fails (head and shoulders)
ES puts in a double top, lower high
It's interesting that you don't use volume either considering your method of trade is to go with the big players/smart money, usually volume is a key component of that, yet you seem to just use more of a time of day type pattern and correlations?
I never thought there was such a thing as leading indicators, but I can see how they could exist. The mavens will always lead with their actions, creating a gap as the followers fall in line.
But I guess that's why screen time/experience is the greatest tool of all, because you will KNOW when something is out of whack and to jump on it.
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