Australian (ASX) Stock Market Forum

Scalping the HSI & the K200 (SIM)

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Time for some reflection before the night session (fun fun).

Have just spent a couple hrs reading back through this thread, similar threads, TH's blog, and review of my four 160 page A4 binded books of notes.
I guess like with learning anything new I need to try and reinforce certain things and kill other habits. Sounds like a list is needed!

Things I've neglected:
1. I shouldn't be putting $$$ on the line yet.
2. I've been over trading.
3. Most importantly I have a lack of understanding.
TH's Blog "Without this knowledge (of markets)...You will start to be confused about market moves and talk about having problems with discipline in your trading, which is a cop out, it's lack of understanding being the real problem."

Things I am doing:
1. Lots of sim time.
2. Observing (trying to trade) my chosen market full time, also taking notes galore and trying to review.
3. Going whole heartedly at this :eek:

SO if anyone else who has gone before in the trading journey is reading along, PLEASE do join in and give your 2c, maybe even 3c, on what patterns/problems you can see in my situation/behaviour based on what I post.

And of course, steps to take, things to implement over the next month.
1. SIM trade the HSI full sessions, no money on the line.
2. Keep putting away screen snapshots of different market conditions and keeping notes.
3. I'm pretty tempted to just cough up and pay for NT so that I can have my stats kept rigorously...but a thousand smackers straight down the trading drain. Ah well.

Any input.
 
:shake: I let just over 50 ticks open profit come back against me to a break even stop followed by what I thought was a bit of a double bottom that failed.
Trading is not good for your mental or physical health, may or may not have a hole in the wall to patch :(:eek: You start to feel the pressure which makes the hard signals harder to take and then the need for the open profits to ride more which inevitably leads to them coming back against. sigh. sigh. sigh.
 
1. Do you have one or a few clear objective setups that you like trading?
Do you prefer to trade with the trend or against it? Stick with your preference until you master it.
If you are a trend trader then how do you define the trend. You need to know when your trend starts and finishes.

2. Are you profitable trading these patterns on sim?
You should not be trading live until you can prove to yourself that you can be profitable trading your favourite patterns. If you are trading other discretionary patterns then stop it.

3. Your performance should be judged on whether you traded according to your plans not if you won or lost.
Did you follow your trading process exactly in every trade? Don't blame the market for your results. Do you know that your trading plans have a profitable edge?

4. Are you keeping detailed record of each trades MAE, MFE? These will help you select the optimum stop loss size and exit target. Detailed trading records will have all the info that you need to turn your trading around. Imagine that you have to present your trading plans and results to a mentor. Would you be proud of your performance even though you're not profitable yet or realise that you are just gambling?

As an exercise how about posting a description with a chart of your favourite trading setup with an exit strategy. This will show us your trading preference and whether you have one objective setup that you are happy to trade every time you see it. Every trader should have one pattern that they rely on and go back to when things get tough.

You've mentioned that you have a "lack of understanding". What is it that you don't understand? Ask a specific question and I'm sure you will get some replies.

Your last double bottom trade resulted in a BE trade, so what. How is your overall record when you trade double bottoms? Is it worth your time trading them?
 
peter2 said:
4. Are you keeping detailed record of each trades MAE, MFE? These will help you select the optimum stop loss size and exit target.
Click to expand...

Probably not. The HSI can have a 1 min range from 4 ticks to 80 within a few minutes. You probably need to read the market more than trade stats when swinging with crazies.
 
Though thinking about this a bit more. If you have 1 pattern that you are trading stats on it would be helpful. Problem with intraday trading is the vastly different market you have from min to min.
 
I could be wrong but if a setup is a double bottom Id hardy qualify that is a set up Id expect to be used to "Scalp"
which is what you intend doing (IE the thread topic?).

If your not following depth as T/H does then perhaps your setups are wrong.

Id have thought identifying momentum and hoping on and off pulling a few
4-6 tick trades every few minutes would be your aim.

You can trade range and volume only and short term micro patterns on Indexes.
Ive never traded the HSI which seems to be every index on steriods.
But the FTSE and DAX Ive traded successfully very short term based on those 3
Pattern Volume and Range.

Mind you I do like to position trade them---.
 
boofis said:
:shake: I let just over 50 ticks open profit come back against me to a break even stop followed by what I thought was a bit of a double bottom that failed.
Trading is not good for your mental or physical health, may or may not have a hole in the wall to patch :(:eek: You start to feel the pressure which makes the hard signals harder to take and then the need for the open profits to ride more which inevitably leads to them coming back against. sigh. sigh. sigh.
Click to expand...

Know the feeling haha......this is about as close as you can get without getting a fill, then of course it completely rolls over with no sign of return. Hoooray! :rolleyes:

lol.jpg
 
tech/a said:
I could be wrong but if a setup is a double bottom Id hardy qualify that is a set up Id expect to be used to "Scalp"
which is what you intend doing (IE the thread topic?).
Click to expand...

Yeah I don't think anyone actually scalps.

Further more I don't think anyone should. ;)
 
Alot of input to reply to and the input is appreciated.

This might give context, when doing a certain prop shops trainee intake the concept was that retail traders think there's only one way to trade e.g. I only trade trends, and that they wanted us to move away from that idea as it's bs retail talk and approach each day with 'setups' you can trade in all market conditions, choppy, ranging, trends, breakouts, etc. and that the best traders don't say "I don't trade range, I'm a trend trader" they trade what they see.
So in terms of what I like to trade, I've been trading everything in sim.

So I just had a foolish lightbulb then that I'm trying to arrive at that point but trying to arrive there all at once where as I'm pretty sure they would have arrived there one arrow in their metaphorical bow at a time.
 
boofis said:
I'm pretty sure they would have arrived there one arrow in their metaphorical bow at a time.
Click to expand...

:dimbulb:

Yeah, i recall TH saying something like "find on or two setups that you can always count on and just do that for a while" to me a while back. For me, that happened to be the ice bergs clusters and subsequent stop run on them in Gold.

I suffered the same fate as you many a time. The thing is, your setup doesn't appear that often, so you get bored and decide "this looks good" and start trying ideas without testing them. Not saying this is what you did, more what happened to me at various times during my intra-day excursions....

Perhaps documenting a description of your trade ideas that work/good to go, then what you have that you want to test/trade on sim to see if they work consistently enough to be profitable.?

CanOz
 
boofis said:
the best traders don't say "I don't trade range, I'm a trend trader" they trade what they see.
Click to expand...

I like this idea. "What is the market doing right now" versus, "how can I squeeze the enormity of the market into my small set up framework".
 
Gringotts Bank said:
I like this idea. "What is the market doing right now" versus, "how can I squeeze the enormity of the market into my small set up framework".
Click to expand...

I prefer how can I position myself for what I anticipate will be the market in the next 1 or 10 or 30min [insert your timeframe]
 
positive sign.png

Hallelujah, first positive sign lol. Was able to sit on my hands until I saw the one familiar pattern I'm aiming for (granted I didn't participate in **** loads worth of short action but I hadn't seen my entry so I didn't trade) and I read it correctly and got a tight entry on it.
 
boofis said:
Hallelujah, first positive sign lol. Was able to sit on my hands until I saw the one familiar pattern I'm aiming for (granted I didn't participate in **** loads worth of short action but I hadn't seen my entry so I didn't trade) and I read it correctly and got a tight entry on it.
Click to expand...

Pretty gnarly day! I've been smacked like the towel bitch at an S M nite.

:whip

Still green but bugger me - what should of been hey?? :rolleyes:
 

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