Postmortem 02-Oct-2006
October 3, 2006 – 9:10 amDear diary,
Good morning from Singapore. I have made two trades today. As I told you before, I am integrating NYSE TICK and NYSE TRIN. Looking for holy grail after bad months like August and September? 
NOPE!
I have been looking for a way/tool to give me a better picture of market breath. Market tone is an important element of dummy trading. Dummy entries work better when we are actually ‘joining the crowd’.
Looking back at the last 2 trades, the solution should be DON’T TRADE. I was looking at TICK over +400 but TRIN was trending up (An up trending TRIN shows volume are flowing into declining stocks.) When dummy setup appeared in this kinda situation, I should just ignore it. (In fact, TICK and TRIN had been keeping me away from SHORT position during first 2 hours of trading)
Anyway, it was indeed another choppy day. Opened low, flat, up then down. No damage to my account since I am almost flat for the day. But, good feel of trading with TICK and TRIN.
Learnt something. Let’s fight another day.
From the desk of Tradergav.com
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Tags: Trading Psychology
Gav,
FWIW, I’ve only found the TICK to be useful outside of +800/-800, and particularly +/- 1000. That’s the level where EVERYBODY seems to change directions, even if only for a few minutes. If you’re trading the TICK and TRIN, consider trying a chart based on 3-minute bars, and give the TICK more weight.
Cheers!
Will
Will, Thanks! I will try to look at 3-minute bars. I agree with you over +/- 1000, probability of direction change is high.
I am still new to these, trying to study as much as possible. Thanks again for your comment!
Gav
Gav,
. Nice blog!
Glad to have found a fellow trader in Singapore
Although I trade options, but the basic trading rules are the same. When you feel uncomfortable abt the market, sit out. Remember your trading rule post by Linda Bradford? Rule #43: Standing aside is a position.
Let’s all be a better trader!
Cheers