Nice Small Profit on US Holiday + Monthly Result

I don't even think trading at US session today. So I trade earlier, and the volume was actually thinner. This is the last trade I made on May.
Monthly Net Result : $2100++ :)
Etc = +$17.61 (various options)
6A = par
6B = + 45 ticks
6E = - 63 ticks
6J = + 96 ticks
6S = - 5 ticks
CL = +437 ticks
QM = + 10 ticks
ES = - 27 ticks
TF = + 28 ticks
ZS = - 4 ticks

Breakout and Reversal Pattern applied. 3 Trade, 2 win 1 lose

Wish a nice holiday for American people.

Time to Relax

As a daytrader, have you ever felt happy or relieved when you had a decent or good profit for the day? You want to quit today's work as mission accomplish. "I picked my daily wage today" you thought. And it's time for a little fun.

I never discouraged having fun after a good job. In fact I agreed with thought that having recreation outside trading is neccesary. However the motivation behind it is completely wrong. The money you make today has little to do with monthly performance. The attitude behind this is my money have to be repaired. Noone guarantee the money you make today will be taken back by the market in seconds. The only thing to stop this is by stop trading forever.

It's ok to have fun wheter you make a profit or a loss. It's even better when you have losses to stoped trading and have some fun. If you had let's say a restaurant business, it's kind of strange if you have a party after having a 200 customers which is usually only 100 come in. Because you know that this event won't come every day.
The same happened with trading. :)

Breakout Setup

After Reversal Pattern, I'll show some breakout pattern which is also reliable.
1. Draw Support - Resistance around the price
2. Identify Price Action near the S/R. Favour the stronger Price Action. In this case the Price at Support is strong. It's likely go the opposite side.
3. Wait the breakout of favorable direction.
4. Enter 2 or 3 tick below the breakout price if go for long and vice versa
5. Exit based on profit target. 10 Ticks is recommended.

It's nice to exit on profit, but it feels better after exiting the price reverse aka. exit near the max profit :)

Another Reversal Pattern

Additional with this strategy is using STOP LIMIT for entering the Setup.
STOP LIMIT is like STOP, but with LIMIT PRICE.
Advantage:
-Your queue may not be seen cause it's only trigerred when price get into yours. Unlike limit or stop that the queue is right in everybody's eye.
-Protect from spiking price. The sudden price if using stop may filled you with bad price. Sometimes the worst price that time.

Disadvantage:
-In fast market it's very frequent the price won't get filled. But we can reduce the chance by tolerate 1 tick. In volatile market, 1 tick is not so important as market may move 10 tick in seconds.

Notes:
If you are a with trend trader, then you may enter the breakout after sudden volume. That's where other counter trader put their stop loss. Sometimes it's a trap, but most of the time give little more pips/ticks to enjoy. Just be careful as surging volume at bottom/peak shows exhaustion where most of with trend trader got out and counter trend get in.

Last word : Trade with your own risk :)

FIGHTING THE TREND MENTALITY..HELP!!

I am addicted at fighting the trend. I think 80% of my trade started with fighting the current trend. I am a counter trend trader and it busted me... a lot.

Today I counter trend again. Most of them. I bought Crude Light when the Dow gap down over 200pts. I bought my last CL at $67.19. Sold it at $68.40. There's just little happy story. Most of the time I struggle and painfully fighting the wave.

I want to stop but I kept doing it. Now I enter my mind and find out the logic behind it.

1. I hate to become a herd. It's happened back to August 2007 when the market was on peak, I remembered buying China ETF at the peak. It kept haunting me how am I so stupid. So the mentality brought until now. I don't want to become sheep buying on top or selling at bottom.
2. Peace of mind. In CL case, I kept hunting the low/top of the day. When I got it, I will relax a bit. I hate enter at the middle because I am afraid the odd that price may fetch again. In reality, trending market don't even look back. There's just pull back and it's usually shallow especially in strong market.
3. Fading the moves mean quick and fast profit. Trending market usually going slower and retrace faster. That's make sense because everybody will react slower when entering the market but act faster when it comes to profit taking. WHen it's time to profit taking, the mind visualized how much profit based on they saw on screen. But suddenly the price retrace fast and the profit suddenly decreasing. Afraid to lose profit, we act faster to secure the profit. Thousands of people do the same thing and the price go much faster.
4. No regret. Counter trend setup usually aim for a less profit. Because every counter traders know they're against the tide. So, after profit taking the price usually goes back to the trend-stream. So it's higher odd to profiting at the peak/bottom. Give a relieve feeling that we do the right things. If I did the with trend entry, most of the time the price will go further after profit taking, sometimes very far. I felt stupid enough profiting too early.
5. Tight Stop Loss. Only stupid people enter the counter trend setup with wide stop. It's high odd probability the stop will take out. Of course the tight stop will have higher odd being taken out but at least the loss's smaller. After being taken out, I'll look another setup to counter again, sometimes after the price go further with the trend. Sooner or later, the price have to stopped and it's time to enter the counter movement.
6. Most of the time, market is on Ranging Mode. I think about 70%-80%. Fading the Range Market is all bread and butter.
7. Lastly, I think I am a daily wage trader. Stop trading after getting decent profit.

I would like to break this mentality. But I don't know how. I want to surf with trend, not swim against it. I want to learn how to enter a little late with the trend rather than a little too early against the trend.

If someone out there know how to solve my problem. Please share me some advice or anything. I will greatly appreciate it. Oh, and my previous post about counter trend, it work. 7-10 ticks less then 5min.

Here's the result from against the trend. Not purely apply the method. If so, the result will much better.

HIGH ODD PATTERN SHARED

I'd like to share the Pattern Reversal. The Chart is 1min 6j (JPY Futures) and it's applied to other instrument.

Conditions:
- Market is on trending mode
- When the market is on trend, watch for the surging volume, usually it's the with trend candle.
- Do not enter yet, because there's usually a final wash for weak hand.
- After the breakout showed, enter the 1st counter-trend candle. Put Stop Loss 1 tick below/above the top/bottom.
- If there's a 2nd washout, you'll be stopped out. Wait for another surging volume.
- You may enter the 1st counter trend candle or wait for another breakout.
- Stop Loss rules apply the same.

This is only my price action sharing pattern. Do it with your own risk.

Here's another example :



Notes : because of the counter trend setup, it's very wise to scalp your profit. 8 - 10 tick may good enough. Though, if you're lucky you may find yourself at the new reversal trend.

YEN Story

I still don't trust EUR. So I shorted and longed JPY.

I am considering adding the contract as I turned into a semi-scalper.
But I still always scalped my losses.