Gav’s trading blog, be inspired by good trades

Postmortem 22-August-2006

Dear diary,

Another losing day of the week.
I thought I am going to write a chunk of stuffs to express my frustration, but after getting some sleep, I forget about what really made me so frustrated.
(Remember, my ‘Two losess in row, walk away for good’ rule)

There was no problem with trade execution. Everything was done as planned. And I was stopped out as planned as well. Though the Rs are relatively small, it made me think of 2 possible improvements I can make to my trading.

• Though yesterday I mentioned the opening volume analysis suggested by John Carter, I have yet to add it into my ‘must do’ list. And, again, it seemed to be proving itself yesterday. From the chart available to me, the first 6 bars in 5-min charts were trading below 10,000 contracts. I would be watching it closely for another week.
• Instead of trading E-mini S&P(ES) and mini-sized Dow (YM) at the same time, I will be trading only one of them with bigger position size.This is not an improvement of the system, I am just seeking a easier way to manage my trades. Most of time, if not everytime, ES and YM are moving in a highly similar fashion.

So far, dummy trading yields positive expectancy and profit for me. However, I am looking for another or couple of setups to fill my trading tool box. Is it possible to make a living by trading only one setup? I know the answer, do you?

To keep track of the effectiveness of my stop loss, I decided to record down the market direction at the end of the day after I got stopped out.

E-mini S&P : Long stopped, market down. Correctly stopped.
Mini-sized Dow: Long stopped, market down. Correctly stoped

From the desk of Tradergav.com

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Tags: Trading Psychology