“My heroes are the ones who survived doing it wrong, who made mistakes, but recovered from them.”
A few notes from today. No need to do an in depth trade review when essentially we had one move.
1) The rotations in the opening move are making the 2 point trades difficult out of the gate. Its simply a function of very few market participants. I normally don't care about volume, but this is pretty bad.
2) This mirrors my same performance in August of last year (ok, but not great) , many of the best moves were in the Globex session. I no longer trade crazy hours so I will have to let that go.
3) Trade at support levels after good rotations (read more than 6-8+ points) have provided good trade opportunities and tick divergence has been very effective at signaling when those opportunities are being presented.
4) ES is making a series of lower lows and lower highs, just an observation worth noting, its not ominous in and of itself.
5) Its options expiration week & it would not be a shock to see a theta burn (per my friend @eminiwizard)
6) Very few traders do well in a slow burn environment its really hard to do nothing, even when its very profitable.
7) Hearing from traders who use tight stops that they are getting KILLED in the afternoon chop. Dont get killed, go to a movie, read a book
8) Its ok not to trade, there are other ways to still work at trading without risking your capital. There is no law that says you must trade everyday.
9) This is not out of the normal, August is a slow month.
10) I will trade tomorrow, but only if the opportunity is clear and I have a good rotation. I pretty much just like making money, trading is just how i do it. I only need one good trade and a hallmark of a good trader is identifying when subtle shifts need to be made. I want to be clear on this, The zones are not the problem, they are fine. The lack of rotation, even small ones, is a temporary issue that will disappear as soon as volume picks up. In the mean time, I can be a bit pickier.
I hope everyone banked today, I look forward to taking money from the market tomorrow, goodnight all.
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Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential