September 8 & 9 2009 Overlays, Trades, and Commentary

SEPTEMBER 9 LIVE TRADE 3 VIDEO CLICK HERE







I will be posting yesterday's trades and overlay as well today. I wanted to start with commentary from yesterday.

9/8/2009

I wanted to make on observation about Friday's morning prep. If you look at Friday, I was anticipating contraction and a slow day. However, the market delivered a strong move to the upside.

I had a bias Friday that caused me to be unprepared to execute. Thus, I missed the move. Now let's take a look at Monday. We got the contraction I was looking for on Friday. I executed a short side breakout trade that got stopped out.

The trade was acceptable. The only thing that could have caused me to loose on that trade was a contraction which is what we got. I have no complaints about having a losing day Monday.

The observation I wanted to point out is that my bias Friday actually did the damage to my equity curve, not the loser on Monday.

If I would have traded what I saw on Friday, I likely would have caught 6-9 points according to my plan.

Lesson:

Trade what you see and do not develop expectations because the market will never meet them. Expectations will only keep you out of setups.

9/9/09

Today's prep was excellent. We had the inside support area of 1023.25. I took the trade with no confirmation.

I am going to note that it was a good no confirmation trade because there was no corresponding pivot marking the potential zone.

When I see this, I anticipate a much lower probability of a retest and washout. This is an extremely powerful observation and needs to be noted.

I caught a good chunk of the move up and again on the late day deep pullback and rally. Today was well executed.

The shenanigans on the last exit were due to me fumbling my order DOM again. Need to hit the button more cleanly.

It is important to continue executing with confidence. It works.