Pulling the trigger

Many traders fear to enter a market. They have made a good plan, backtested it but hesitate to pull the trigger. Even though they realize that the probabilities based on past performance are that they will win. They are like parachutists just before jumping out of a plane. Well trained, equipped, and 15,000 feet up in a plane with the door removed, yet unable to take the last step in the process. Fear of entry is one of the biggest problems facing a trader. Unfortunately, there is no easy, comfortable way to overcome this obstacle; one must simply decide to take the next signal.

Trading is about risks. This morning I came in Long without any doubt and got my points

> daytrading
> FDAX

Today insecurities

Today I felt so insecure about taking a position. I dont know why. Maybe because I felt sick this morning. Probably it has to do with the markets too. The FDAX in a congestion zone this morning and at an import Moving Average (50 hoour EMA) finding support. I had the feeling it would go up because what dont comes down must go up eh? I took a long with only a few points win. I got out when I saw in the 60 min charts the FDAX at resistance of last days and today.

Blocked

Today i traded unsuccesfully. I had the idea that I am totally blocked after last weeks stong uptrend. I didnot get a grip on the markets today. No "flow". The first trade was long after a gap. Strong trend up. The FDAX at 4400 almost the highest level in the year. We were in a nowwhere zone. The gap was closed. This happens.

How do I deal with losses? I think It is important to overlook your trades and try to rethink why I went in and how I went out.

No trades...

I was mentally not able to daytrade this week which is aprivate matter. I dont think that daytrading in FDAX or any other future market will have succes when your head is thinking about other things. I told you ealier about commitment.

Though discipline being very important,I have the freedom to take a few days off.

No movements

This morning no movements on the FDAX. I traded with 5 points win. Lower volatility being a problem more and more on intraday basis. I take the rest of the day off.

Chart patterns

It allways surprises me to see that the same chart patterns come back over and over again. In a daily chart of the german DAX index you can see a head shoulder pattern forming during march and april.
You can also recognise the importance of a (50 EMA) moving average as a support level during longer trends. An overview of some chart patterns can be read in this excellent article

Engagement

I traded once before the opening of Chicago (CBOT) with a reasonable 6 points gain. No more trades in the day though I hesitated to go long at 4276. Why I didnot? I think I didnot because in the afternoon I had other things in mind. My children visiting me for the weekend and other privat matters. This is a bad attitude to deal with futuremarkets. So I stayed out. It would have been a nice trade but that doesnot mean a thing, I feel no regrets about it.

I read something during the day about traders engagement from Joe Ross. I put it here, it is in German and comes from this site

Engagement

Kürzlich schickte mir jemand die folgende Frage: "Wie engagiert muss ein Trader sein?"
Das kann ich nicht in Zahlen ausdrücken; beispielsweise welches Engagement ein Trader aufweisen sollte, wenn man es auf einer Skala von 1 bis 10 ausdrücken wollte. Wenn ich es nach dieser Skala beurteilen sollte, würde ich sagen, er muß "10" erreichen.
Was sagt dieser Wert über das Engagement aus? Woran läßt es sich überhaupt messen?
Die meisten Leute haben ein "Interesse" daran, Trader zu werden, die dauerhaft Gewinne erzielen. Aber nur wenige besitzen die wesentliche Voraussetzung des "totalen Engagements". Totales Engagement ist erforderlich, wenn man auf irgendeinem Gebiet ein äußerst hohes Erfolgsniveau anstrebt. Ein Trader, der sich total engagiert, wird 100 Tradern, die nur "Interesse" zeigen, das Geld abnehmen.

Der spanische Eroberer Cortez hat Engagement gezeigt, als er in Mexiko landete. Mit weniger als 100 Leuten ritt Cortez in Mexico City gegen 100.000 Azteken-Kriegern ein und legte Montezuma, den Führer der Azteken, in Ketten. Nur wenige haben jemals ohne totalen Einsatz Erfolg erreicht. Der totale Einsatz für den Erfolg ist für einige Trader obligatorisch und läßt keine Alternative zu - kein "Kann", sondern ein "Muss".

Nasty Morning

It is friday morning again.I am always suspicious about these fridays because the markets on fridays are very often low volatile. We mostly wait for the Chicago to open and with it its US data annoncement. Or is it weekend?
I am reading some forum abou trdading and found this blog of a guy who claims to have seen it all.
I know that a trader has different phases in his career, from start to the end. Mostly the end comes soon for the many starters. Read more here

Evening

Today I had difficulties with my exit. I took quickly a position in the fdax long after a gap opening. It turned out to be a comfortable one at least for my trading. I gained 6 7 points which is not bad for my trading. My target is 10 points. I had to decide if I had to close. I had time for it. The fdax moving at an important moving average which could be a restistance. Or not? You dont know for certain. I closed at with 7 points win.

The rest of the day I had things to do outside. I turned out to be dammned right because the markets turned south top close the gap.

GOAL

This is my first contribution to this in where I will post daytrading items in general but especially concerning the german fdax. I will place links to other sites and recommendations to articles or to news sites.