This week we are going to take a closer look at trade setups.....now of course, I only hope you do your own research and just don't lean into it. Because "you" are responsible for your own decisions......
My trading is divided into several areas......long term stocks, short term stocks from 5 to 21 days, selling some covered calls and during the day to keep busy some futures trading. This last area is were I would like to spend a little time this week. My trading is also divided into three different types of trade...the first is "MY" ideal load the boat the mother of all trade setups. Then when I am waiting for my ideal setup, I will do a scalp or two to keep my head in the game, so to speak. The last one is, of course, the first bar trade.
Why the first bar trade, you ask? Well, anyone would will really talk about their trading and be somewhat honest would tell you about the time it didn't matter what they did....they only lost money. They would tell you about being in a chat room and trying to follow some market guru and they only lost money. About buying some stuff or attending a workshop and only lost money. It didn't mater what they tried....they only lost money. Well, I had that period of time also, in fact, I think I might have had that at least once a year for a period of time for the last 9-10 years.
I would sit at my desk, afraid to pull the trigger, because in my gut I knew it would fly back in the my face, late entry, not taking profits, you name it...then as the day wore on I found myself in a panic....I needed to take a trade because after all I was a trader...RIGHT? You guessed it, more trouble, after dinner I would look back and go....WHAT THE HELL WERE YOU THINKING!!!!!! Then one day, I decided the I had had enough, I would just take the breakout of the first bar and manage it. So let's me explain the trade. Tomorrow, I will take the breakout of the first bar on a 3m chart, if it takes out the low and the high of the first bar I will pass and if the opening bar is more the 2 points, I will pass. So let's see what happens.
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7 comments:
why are you passing on the trade?
-jason
Glad your back.
MarioM
Glad your back.
MarioM
good to have you back dennis...hows the ranch comin' along?
Hey Hey....if you want a commercial free CCI Room...TW has opened his own chat room.....to get there go to
http://home.wi.rr.com/ccitraders/index.html
The chat room links are in the website.....it is right on the same server that Woodie's Room is on and is truly FREE.
I downloaded your 4 pdfs on internals about a year ago from Dr. Bob's hotcomm room. I had some problems with my hard drive a while back and those documents were corrupted. Could I get another copy of your pdfs?
Thanks,
Dan
ddonahue@midsouth.rr.com
> Hey Hey....if you want a
> commercial free CCI Room...TW
> has opened his own chat
> room...
Don't you think it's a bit odd that you don't have a statistically better chance of being a successful day trader BECAUSE you use the CCI as your principle indicator? I mean, if it were THAT good, you should see the 90% failure rate among new traders cut down to a 70% chance at worst and a 50/50 chance at best if they "smartened up" and used the CCI under the tutelage of the Wooden one or one of his cronies? No such luck. New CCI traders drop like flies, same as all of the rest.
I'm a "CCI survivor". What's that you might ask? Well, it's someone who, at one time, ate all of the Wooden one's BS word for word but still managed to make it in this business. How? Easy. I got rid of the CCI, studied market internals, studied price action in relation to them and took some sage advice from two traders in "that room" who actually had some valuable things to say about trading (Dennis [aka Sport, your blog host here] and gb007).
To give you some idea of the difference between becoming good at reading market internals vs. becoming good at reading the CCI, this analogy is pretty good: reading market internals well is like becoming good at reading a heart monitor / EKG attached to a patient's bedside. Becoming good at reading the CCI is like putting on a latex glove and then putting your finger on the patient's pulse to discern their present heart condition. So all of you Wooden one wannabes go put on your latex gloves and have at it, trying to read the pulse of the market. If you were doctors, you'd all be sued for malpractice.
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