Changing and adapting minds (2)

I posted before about changing your mind and adjusting. Let me put it again with the words from this writer (adjusted by me):

Some of us think success and being right are one in the same thing. That is wrong . The truth is that it’s OK to be wrong; just don’t be wrong for long. In other words, cut those losses short.

Each investor must look at himself in the mirror and ask what is more important – being right or making money? If profit is the ultimate goal and not pumping the ego, be wrong but adjust.

I totally agree.

MAGAZINES I READ

I read a lot about trading. Mostly from the internet and some books I got. There are so many good books available it is useless to sum up only some of them. Also magazines give some good insights in new and old trading methods and strategies.

Two of the best are Traders which publishes in german and english. The august item is just out and of special interest is an article about gaps. I am trading opening gaps on the FDAX, they occur so often so what else can you do than trade them? I am working on a article about trading these gaps. Other interesting articles:

• An interview with Steve Nison, the the father of modern candlestick analysis.


• A comparison of the game of poker and trading. I already posted about Trading, Poker and Zen. The book which I read then Zen and the art of Poker should every trader read.

The second magazine I recommend and read is Stock, Futures and Options Magazine. There is an online version too. The cover article is of special interest to me: Why Large Winning percentages are a bad measure for trading systems I am working on an article about a mechanical system for future daytrading, a system in which expectancy of possible directions is of key importance.

daytrading
FDAX

The 5000 on the DAX?

No trades performed the last two days due to fact I had other things to do. The market consolidating above the 4800 level. Yeah I have to look very good, 4800. The danger here is the forming of a double top or a 2B top. Or are we going up again to the 5000? Don't see it is to high because the momentum and the move of the mast weeks is very impressive.

daytrading
FDAX

Changing and adapting minds

The markets in a winning mood especially the FDAX which goes up and up, now we are at 4800. It is true what I read here he who fears change should be afraid. I would say:

He who cannot adapt and change his mind will never win.

I went long too yesterday evening.to close in the day a profitable trade.

It is clearly the Nasdaq which leads the pack.

daytrading
FDAX

Waiting, bull or bear?

The day starting with some excitement but ending in a boring session during the late hours of the tradingday. Clearly we have to wait later this week to let the markets move again.

My first trade in the morning was long after breaking out at 4742. In a tick the FDAX moving 3.5 ponts up and I went long just to see my position coming into a nice gain. It then slipped away and ended in a loss. I was expecting a further mmove up, we are all bullish at the moment aren't we? At entry point it quickly moved south and let me behind with a loss of 5 points which isn't the way I like. but OK, my initial stop at the last high.

I then turned my position to give me a decent 10 points ending the day in a plus. The rest of the day in a laziness mood end closing at openingslevel. Where will we go from here?

daytrading
FDAX

Up and Up

I don't feel well with the current bull trend at the moment. We didnot see any negative day the last week and the bulls are winning for months now. Though as a future daytrader I dont bother too much about this but it seems to me that there must be somewhere a reversal.
I am off course not the only one. This guy is in Chicago and is allmost certain about a peek top this week in the markets even leaving his positions unwatched. I wouldn't do that. How can he be so sure? If the techies on the Nasdaq still rise, well, some kind of panic buying is the result.
The author not certain too about this market and warning for a big reversal day

daytrading
FDAX

Wrestling with the markets

Trading is not an easy job otherwise everyone could do it. Here is a guy who is, after asking himself whet kind trader he is,rethinking his exits when in a good trade. Exits are as important as entries. I am a liitle frustatad that I didn't finish my article about exit strategies yet. I hope to finish it one of these days. Lots to do.

This trader is wrestling the choppy intraday markets, which leaves him not much space to set up enough good trades. He gives some good advice: don't tarde too much but wait to right opportunities occur and read in the meanwhile a good book. There are days in which I just wait for hours and hours, doing other work or just waiting and reading.

The markets up again today. When will this bull rally which started last thursday be over at least for a couple of days?.The S&P at the moment testing the high of early march at 1225.

daytrading
FDAX

Testing higher levels again.

The FDAX testing higher levels today again. It is at year high now. After trying the 4670 without much momentum today the market broke it and looking into new territories. I went long with it today.

A very good article about trading vs daytrading from Stephan Vita describes his experience with daytrading. He gives also a very interesting graph in which you can see the percent of NYSE Stocks Above 50 Day Moving Average. It seems that during time this percentage nver stays long above the 80% or below the 20%. It ios now at 81%.

Panic and business

Thursdays terror bombs in London caused a sharp fall on the markets, eg the FDAX fall more than 150 points in a few hours during the morning. But in the aftrenoon the markets rebounced regained most of the losses of the morning and at the next day they recoveed to levels previous thurdsday. The S&P500 closing even higher then wednesday. See the chart below

The reaction of the markets and the expectations of various traders can be read here in this articele in the New York Times titled Initial Panic Selling Followed by a Numbing Business as Usual. Business as usual.

daytrading
FDAX

Position size (2)

Yesterday I was writing something about position size and today I read this interesting article about the subject.

The author sums up various position size variants along with some very usefull links. He comes to the conclussion that a fixed percentage would be the best way for his trading.

Although I trade futures on the DAX with a fixed lot, due to margin I can't vary my position size in my daytrading, it is a must to be awere of the importance of position size to all traders

Two very quick trades today. The first trade came into a nice win position but the market turned immediately. I felt after seeing those spikes in the chart the market could be at a reversal point. I had to close at entry. I tried again and the markets again pushing north to give me 5 points. I didnot trade the rest of the day and I was right about my suspicions, later on the day an evening star in th 60 min chart and a downward movement followed after this pattern.

Position size

Two easy trades today. It is not my trading which worries me today but the work I have to do with my main website. I want it to be, beside a place to kep track of our trades, a resource for my trading with some articles and thouhgts about trading. I have now four articles in preparation without having enough time to complete them.

This morning read something about Position sizing which I liked very much.Yesterday I was just thinking of rewriting my website about my moneymanagement and riskmanagement.

Markets maybe in bearish mood again. In a daily chart of the S&P500 we may see a broader Head Shoulder pattern again. See Below.

daytrading
FDAX