Day Trading Recap October 20th 2011

Tradestation Charts Pre-Market

Oct 20th Pre-Market

Today's trading is very unique because there was a variety of changing market environments. I've included today's pre-market chart to give you an idea of what I was looking at before today's trading.  Hours of analysis isn't needed, you can gauge what's going on in the pre-market in roughly 5 or 10 minutes before you are ready to trade.  You can see the indecision in the market with the erratic behavior; strong runs, long bars, whipping back and forth.

 Normally there is a change from the pre-market to when the market officially opens due to the fact most traders only trade when the market opens.  Notice how after the market opened (yellow line) the erratic behavior stopped but the market was still whipping back and forth.  I took T1, T2, T3, and T4 all with the momentum of the market and all 4 trades fit the criteria perfectly.

T5 was a good trade as well just after news but that's when I had enough!

Tradestation Charts, day trading

Tradestation Charts Oct 20

I often speak to the market like it's my friend simply because I don't like imaginary friends, I like something tangible.  I told the market either you act up or I'm not going to participate anymore.  It didn't listen and it continued to whip back and forth.  Looking after the fact, there were 3 trades available that would have made me money, but often in these situations it can go either way.

This is when you have to have to control your emotions, I know from experience that I could have easily lost a ton of money in this situation as well.  This is why day trading isn't like gambling, there are patterns that we pay attention to and stay away from.  Similarly, there is also movement in the market that has a high probability of happening, this is where you day trading strategy comes in (click here to see mine).

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Tradestation Charts Oct 20 Chart 2

The market lured me back in at 9.53 and I didn't get filled on a trade that would have worked out exceptionally, the market is no longer my friend.  I forgot to tell you we often bicker with each other.  T6 was a great trade with the strong momentum down and T7 was also a good trade.  Notice I left roughly 1.5 points on the table with T7, with the strong trend down the market could have easily tanked and sure enough it did after I made 2 pts.

We are friends again.

At this point you can see the dynamic of the market changed, there is no more indecision but we still have those big runs.  This means that we should enlarge our targets and look for big moves in the market.  T8 worked out exceptionally for 4 points and as expected the market continued to give us great runs.  I ended the day with a great 5 pt move with T9.

We are now best friends.

It's important to pay attention to detail when day trading because the market often gives cues of what is going come next.  This is why a lot of day traders are able to make money every day because they see these small cues.  It's not something that is forced, it comes naturally.  The more practice and time you spend in the market the more likely you are able to develop that skill.

Day Trading Results Oct 20th

Day Trading Results Oct 20th

Day Trading Results Oct 20th 

(date is incorrect on the table to the right, stats are correct)

  • Total of 13 trades available
  • 7 winners
  • 2 losers
  • 3 trades (winners) didn't take
  • 1 no fill
Click here to see the complete list of Market Recaps

Comments

  1. Great trading! Keep 'em coming...

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