|
Emini Day Trading
Setup Combinations
The emini day trading method has
two basic ways to view a day trading setup: (1) right side
only - referred to as right side base or minimum base (2)
left-right - referred to as selective base, the right side base
setup has become more selective from adding additional setup
components that can be seen from left side price action-price
failure.
The
emini russell day trading charts-discussion in the audio below
which include the charts above, have been taken from a
March 2008
emini day trading method seminar focusing on selective day trading
setups,
the concept being one where additional trade setup components are
added to a base emini day trading setup, where the additional
selectivity will increase the 'odds' of the trade outcome.
Along with reviewing
the selective day trading setup combination from the charts above, this
was further discussed in two contexts: (1) 2 traders in the
group and setup combinations that they were using, what was called
trader selective (2) a contrast to those who are not emini day
trading base method, let alone selective base trading, an outcome
leading to missed trades and chased trades, further resulting in
losses or often winning by accident.
audio-chart discussion: (1) SB-RB
as a 'template' for a selective base setup (2) WHY - would anyone
take this trade (3) TB - 1 trader's base setup (4) TB2 - another
trader's base setup that is actually coming as a failure break
setup to the yellow dot sell loss -
Read More
-
-
Emini Day Trading Method Base Setup - Trading
Non-Setup Trades
When I use the phrase bad trade, I am not
simply referring to the results of a trade. For instance, base
method setups will incur losses, but these would not be thought of
as bad trades. I am also not referring to a misread of a trade
setup.
To call a trade a bad trade, I a referring to a
'given' trade type AND what the results-implications will be, if
that trade is continually taken. This is not intended to be a
subjective distinction, but one that can be seen over the 'larger'
number of trades, and what was the typical outcome. This is
how we determine 'odds' as a method trader, through repetition and
what happens the 'most' number of times, from which we can then make
a method decision regarding trades-actions that should be attempted
to be eliminated.
I am calling a trade bad IF: (1) the trade does not have method
components that setup-trigger the trade (2) the trade is done at a
'filter point' specifically established to eliminate a trade at that
given time. There are 3 typical results from taking a bad
trade: (1) the 'odds' result - a losing trade (2) a trade that
you get a loss BUT then becomes the trigger of a base setup winner
that you don't re-enter (3) a bad trade that wins - further
reinforcing the trade that was taken -
Read More
-
-
Trading Psychology
Plan
We continue to discuss the importance of trading
AND planning saying that: (1) you can't trade without a plan that first defines a trading
methodology (2) the plan should then further defines the components of the trading methodology
that can be turned into trading setups (3) the specific setups and trade
quantity needs to 'match' the
trader's personality. The objective is to have created a plan that includes
core repetitive setups with a positive expectancy that you can recognize realtime AND that you have accepted the implications of in terms of related risk
reward - BUT this might not be enough - there still
may be issues as related to emotion AND fear that circumvent the implementation
of the plan.
So what about a trading psychology plan? A
plan that includes a series of steps that start where method implementation
'hangs-up'. The objective of this plan would be to take the trader's
action - give an honest assessment/understanding of the action - define a
'setup' for replacing the action -
Read
More
-
-
Trading Psychology
Problem - Trading Non-Method Trades
-
Many
trading psychology problems are the result of trading non-setup
trades. These are trades that really 'should' be referred to
as 'bad trades', in that not only are they non-method, the trader
is actually aware of this and takes the trade anyway. This
is really the trading psychology problem, knowingly taking a
non-method trade AND then having to accept this additional
'baggage' when there is a loss.
When I use the phrase bad trade, I am not simply
referring to the results of a trade; a losing trade that is a base
method trade is not a bad trade. It's also not a trade that
should be a trading psychology problem, the risk of loss from 'some'
percentage of method trades has been accepted. I am also not referring to a misread of a trade setup,
for instance a trade that was right side base BUT where a left side 'reason' for not
taking the trade was missed.
To call a trade a bad trade, I am
referring to knowingly taking a non-method trade, probably as
result of chasing a missed trade, or because of fear of missing a
trade. I am calling a trade bad IF: (1) the trade does
not have method components that setup-trigger the trade (2) the trade
is done at a 'filter point' specifically established to
eliminate a trade at that given time -
Read
More
|
