How did I trade today? 12232020

23 Dec How did I trade today? 12232020

#fin­twit #order­flow #day­trad­ing #dai­lyre­port­card #day­trad­ing #trad­inglifestyle #day­trader­life #grasshop­per­sanony­mous #trad­ing­forex #trad­ing­com­modi­ties #NEXT

Sum­ma­ry: Process is Key

P&L: FLAT

Every trad­ing day I recap my trades, includ­ing more than entries and exits. Why did I take the trade? How did I man­age the trade, my emo­tions and cog­ni­tive func­tion? All the good stuff as well as all the ugly of being a day trad­er. As always, feel free to reach out to me. 

My week­ly goal: 

• Don’t take trades where SL place­ment is sub­op­ti­mal. Instead, reassess for a bet­ter entry if pos­si­ble. Unless there is a planned momen­tum trade.

Good Pre-mar­ket routines

Good Ses­sion PECS

Good Trade selection

Good Trade siz­ing or SL placement

Good Trade Exe­cu­tion & Mgmt.

Good Risk Adjust­ed Returns

Yes Dai­ly review

Mup­pet meter (1 being best — 5 being worst): 1

Sum­ma­ry

• GBPNZD
  • IB: IB trad­ed down react­ing off the new­ly formed H4 C‑sup. Berst entry would have been a few min­utes in after a quick test of said C‑sup. 
  • C: Extend­ed down from IB and closed back with­in IB again fail­ing auc­tion clos­ing as doji with very long buy­ing wick. Although I still believe there is more down­side as this could just be a third reac­tion to under­ly­ing H4 demand. 
  • D: Closed trad­ing below IB, no LLs. Sell­ing tail in C confirmed.
  • E: Closed as a Bull Engulf with­in IB
  • F: Closed as a con­sol­i­da­tion with long buy­ing wick
  • G: Closed mak­ing a Poor Low
    • Tak­ing off ear­ly today to spend on my redis­cov­ered love: play­ing chess. If any­one is read­ing this that might be inter­est­ed. I play online so it might be a fun way to get in touch while sharp­en­ing our minds 🙂

Sum­ma­ry

• GOLD
  • IB: Trad­ed higher
  • C: Closed accept­ing val­ue slight­ly deep­er than I like as val­ue is not very wide. Wait­ing for a retest of VAL.
  • D: Closed as a Bear Engulf below VAL (leav­ing a poor high behind)
  • E: Closed deep­er into IB
  • F: Moved through IB after fail­ing auc­tion and extend­ing below form­ing a Neu­tral Day
  • G: closed as an Inside bar with longer buy­ing wick

Hypos — GBPNZD

• Which hypo played out and how did I hypoth­e­size it play­ing out? How did it actu­al­ly play out? What did the pro­file and price action show?
• Hypo 2 — Val­ue Rejec­tion Down
  • Pre­ferred: Con­fi­dent close below VAL, IB exten­sion Down with sus­tained auc­tion. Prob­a­ble low/medium ini­tia­tive activity
  • 100%
  • At the open price test­ed new­ly formed H4 C‑sup (Bear Engulf) and trad­ed low­er leav­ing a sell­ing wick in B extend­ing down in C. Even though C closed back into IB (fail­ing auc­tion) due to the ori­gin of the move I gath­ered we could see a fur­ther move down. 

Hypos — GOLD

• Which hypo played out and how did I hypoth­e­size it play­ing out? How did it actu­al­ly play out? What did the pro­file and price action show?
• Hypo 3 — Return to Value
  • Fail­ure to accept value
  • Pre­ferred: price action rever­sal with IB exten­sion down and sus­tained auction.
  • 90%
  • Price accept­ed val­ue dur­ing C but there was no rota­tion. Instead a porr high was formed and D closed as a Bear Engulf with a con­se­quent move fur­ther down in line with the D1 narrative. 

How accu­rate was my assess­ment of mar­ket con­text? Was I aligned with mar­ket context?

• I did well here

How did I feel before, dur­ing, and after the trade?

• I was con­sid­er­ing to go in at the open on GBPNZD but decid­ed against it as I had not cog­nizant­ly wit­nessed a H4 Bear Engulf with­in val­ue. Feel­ing okay with not trad­ing unless I am com­fort­able tak­ing a risk I opt­ed to watch and observe. I was also hes­i­tant due to the near­by H4 demand (not giv­ing good enough R/R) although in ret­ro­spect I should have been more mind­ful of the orig­i­nat­ing loca­tion coin­cid­ing with a D1 sup­ply. There was anoth­er oppor­tu­ni­ty to go in dur­ing B as it test­ed the new H4 C‑sup for the 2nd time. 

How well did I fol­low my process?

• Trade selec­tion
  • The trade off the open would have been the best
• Trade Siz­ing & SL placement
  • SL place­ment would have been above the round num­ber so that would have been good. 
• Trade Exe­cu­tion & Mgmt
  • Mon­i­tor­ing M5 VWAP in DT would have ensured stay­ing with the trade. Even places to add size on to the trade (not that that is some­thing that I am active­ly explor­ing at the moment. Just as a side note since I have observed this under my ‘old approach’ many times over)

How well did I man­age my phys­i­cal, emo­tion­al and cog­ni­tive states?

• I did well here

What did I learn today?

• When a new H4 sup­ply is cre­at­ed with­in a D1 sup­ply, even though the open was with­in val­ue, we can move to a val­ue rejec­tion. This val­ue rejec­tion came through a 2nd chance entry close after open and (as observed before) used the influx of par­tic­i­pants at the Lon­don open as a dri­ver to fol­low the move down negat­ing the under­ly­ing demand. As hypoth­e­sized, this does increase the like­li­hood of a low/medium activ­i­ty day. 

What’s one thing I need to do more often?

• Being com­fort­able not trad­ing. The amount of work I put in to study mar­ket mechan­ics should give me con­fi­dence that I will catch a sim­i­lar oppor­tu­ni­ty when the time is right. I am con­fi­dent of my abil­i­ties to not have to be in every trade. 

What’s one thing I need to do less often?

• I should have been more mind­ful of the orig­i­nat­ing loca­tion ie. H4 sup­ply made with­in D1 supply. 

Under the cir­cum­stances, did I per­form at my best?

• I did well here

For my trade plan(s) on this par­tic­u­lar day, go here:

Pre­mar­ket Prep GBPNZD 12232020

Pre­mar­ket Prep Gold 12232020

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