10-31-12: 2/3 trades ITM

I didn’t trade yesterday evening, as I had to work late and I didn’t get off work until 8pm. I did trade early that morning though around 4am. I managed one trade then, it was ITM. My second trade was today, and was based off PA, Fibo, and the Timing chart. Im still tweaking my strategy to suit my needs and style, I like to play around with certain strategies and see whether or not I will keep them for future use. It’s always better to have more than one tool in the market.

My first trade price was dropping, got close to a previous resistance level, and a Doji formed, signaling a possible reversal, so I waited around to see what the next candle did, along with the timing indicator. The next candle was green, and the timing indicator was below the 8 level, which signaled to me price was oversold. Let’s not forget the EMA, which I use to see if price may spring back to the line if it ventures too far away from the EMA too fast (rubberband strat). All of these things I looked at were signaling to me a buy, so I placed a call – ITM.

My second trade that I placed today I had the right idea, but my timing was off. This trade was based on a Fibonacci retracement since price was in a big swing. I waited for price to reach the 161 level for a potential reversal. Price started being rejected at this level, and also in the past that level was a resistance level, so it could also be seen as a current support level. I entered, but a bit too soon, I should have watched price a little bit more and waited for a reversal candle. I had the right idea, of where price was heading, but it didn’t work out.

My third trade I placed a call because of my previous trades signals, but this time I had a reversal candle to add to the mix, so I placed a call and it was a winner by a long shot. I’m starting to collect good tools that I can easily understand. I need to work on my timing, since I usually have the right idea of price direction, just bad timing. For those who are just starting out, I recommend mastering one particular strategy, or at least see the how and why it works. You need to understand what is going on and don’t just blindly apply it to trades. Over time you will gain confidence.

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