The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at toddstrade@gmail.com
I am always open to questions, comments, or suggestions on how to improve this blog.


Tuesday, September 16, 2008

sim

I traded the Fed announcement today while in sim-mode; trading QLD, SKF, and SRS. After about 10-minutes I was trounced to a negative $680. I focused on SKF after closing out the other two and scalped my way back to +$50 for the day. There really is a lot more to just sticking to the addage of "Don't revenge trade," "Don't over-trade," "Stick to your plan," etc., etc..
The individual trader really has to have an internal fundamental understanding of what these addages mean before getting into the thick of things. It's so easy to treat this system like an arcade game, just clicking away thinking you'll work your way out of the hole you dug yourself into, as well as convincing yourself that you are correct in your opinion.
SIM-mode can certainly help with perhaps getting a pulse on a fast-moving stock, but it's not exactly an accurate depiction of how things might turn out if you were trading with your own money; both in how your orders will route, as well as how your mental edge will hold up.
So, my lessons learned for today are:
1). Sim-mode rules! It can be fun, AND it can teach you some valuable lessons if you follow through with a mental review your performance.
2). I don't trade fed-day with real money for a reason! Just when you think you have a lock on the tape, you can easily get completely spun around and tumble in the opposite direction.
On a positive note; I bought (NOT in SIM-mode) some NOV this morning at $49.50 as a swing trade. It just looked very Oversold to me and seemed to have found strong demand after testing the March lows. It currently looks strong; closing at the highs of the day with strong volume, could see some continuation tomorrow morning.

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