August 25 2010 Trade Review

I had some good scalps today as I have been trying to be patient in August trading.

It has been very interesting when I do decide to engage how absolutely focused I quickly get. In the last few sessions, I have felt a little off and uninterested in executing early on. It is not that I am uninterested in trading. The disinterest is in the ridiculous games and lack of edge I perceive at most points throughout the day.

Then I see something and immediately attack.

I liked the long side after the initial thrust down just after the news release this morning but also knew the price had been trending down in the past few days.

It was a good bet to buy the pain as the price came down but that is not my style right now.

I waiting for total clarity on direction then taking the very high probability scalps (10 -15 ticks TF...6-10 ticks ES). This is what has been working for me.

I have no need to catch the high or low. There may be more points available but I have observed that I rarely capture the lion's share of what is offered.

I am looking to capture the small inefficiencies and that is it. If the trade explodes in my direction I will hold it but am not forcing anything.

I am certain that I will perform better taking a later sequence setup with more conviction then an earlier setup at optimal prices with less conviction.

This is a game of fakes and traps and the one with the most conviction usually wins.