HAPPY's Trading Dairy

[Happy_Singh]

Hello

Break-out above yesterday's high will confirm the up-trend for higher time frame traders,

xx485 is yesterday's high, also round number resistance @ 12500 so expect high - volume break there

if some-one is trading with big quantity good place to scale-out where break-out traders place their entry stops


Happy

 

[Happy_Singh]

Did not take the short trade even though has clearly identified the range in the morning.

It was a failure trade from yesterday's high and round number resistance . . .

Anyway booked the long trade almost at the top :thumb:

Was looking for another long on retrace, but the retrace is very deep, so now need to wait for more consolidation before taking any action . . .

As missed the very good short opportunity, now don't want to chase the short entry to the bottom

But overall no regrets as long turned out to be v good


Happy

 

[Happy_Singh]

Its amazing how the same price action repeats at the same levels . . .

Yesterdays high saw same kind of selling today also but more momentum as happened in earlier part of day's trading session.

Feels silly to miss out on the trade

Although clearly made more than daily target on the long which had almost perfect entry/exit and a good scale out too . .

Anyway, Happy has to be always Happy, not matter what happens with the trades



Happy

 

[Happy_Singh]

System short comes when 10 mins TF closes below 12340

12150 is the major level now, close below that opens up new vistas for bears.

But some consolidation here will be nice as far as my trading goes

Happy

 

[Happy_Singh]

Nice break down on BNF daily charts


After a good short trade off the 2nd bar of the day tried 2 long trades on re-bounce from support @ 12150 . . .

The on going trend prevailed, once again proving to myself picking bottom is an fools' errand

but the second short making up for the whips . . .


Now we have to see where does the price take support, most probably will be defining new support zones as now the established S/Rs look quite far off


Happy

 

[Happy_Singh]

Hello

Been doing some work/thinking on my trading process . . .

Random Thoughts

Basically for index futures 2 types of techniques can be used to design a trading systems / method

1. Trend following (Buy High - Sell Higher, Short Low - Cover Lower).
2. Reversion to Mean (Buy on Dips, Sell on Rise)

Trend Following
For trend following the most popular methods use SAR i.e. stop and reverse, trying to classify market into 2 phases Up-Trend & Down-Trend.

One can also bring in the concept of Sideways or No-Trend, effectively introducing a third stage of not being in trade. So the trend following system can be in Long Mode, Short Mode and Sitting on the Sidelines Watching Mode

Again most of the trend following methods use Break-Out / Break-Down as the entry technique. For a trend following system one requires 2 definite things / rules to be in-place, one is the Time-Frame and second is the definition of the trend.

There will be millions of combinations for defining the trend based on hundreds of indicators. One of the method using price action defines trend as the price making successive higher swings for an uptrend and lower swings for a downtrend.

Reversion to Mean
This type of trading entails identifying key Support and Resistance levels and trying to sell into resistance zones and buying into support zones.

Combining Both
Most of us (traders) who spend efforts on designing / searching trading systems are effectively trying to combine these two types i.e.

Buy Low - Sell Higher, Sell High - Buy Lower


Happy

 

[Happy_Singh]

Random Thoughts Cont. . .

More Random Thoughts

The activity of trading also can be classified as discretionary (based on traders judgement / experience) and mechanical / rule based
and about a billion combinations of both

Most will agree that some sort of rules have to be adhered to be able to successfully trade.
Again having a set of rules and being able to follow them are two different things.

I personally feel, a trader needs to do rule based trading for the major part of his portfolio but also should have opportunities to execute discretionary trades to satisfy his trading etch (kida) otherwise this etch if suppressed will find a back-door entry. So 10-20% of discretionary trades, trying to catch those bottoms &/or Tops keeps a trader alert to the fact that over all its in his interest to follow the rules based path. The experience and learning that comes from these discretionary trades also help in upgrading the rules for trading system / methods being followed.


Happy

 

[Happy_Singh]

Trading Thoughts Cont . . .

What I prefer to do . . .

1. Have a definite rule based system to call the direction of trend.
   
   
2. Classify trends into only 2 types up or down.
   
   
3. Use MM or position sizing to take care of the sideways phases.
   
   
4. Use time frames suitable for Swing Trading for trend definition.
   
   
5. Take discretionary trades only for intraday time frames.
   
   
6. Never carry position overnight against the System.
   
   
7. Always have a disaster stop (Uncle Point) live in the system.

Happy

 

[mastermind007]

OK, it seems I cannot thank my own posts :rofl:

Thanks for the info :thumb:

Happy

LOL .... helpin u out here !!!!

 

[Happy_Singh]

LOL .... helpin u out here !!!!

:lol:

don't think even thanks help, it seems already past 50, but the feature for setting a signature not yet available to me

Anyway . . . one day that will also happen :lol:



Happy