Well I missed 2 easy setups, 1 being the morning pop (I actually was long at 822 off of a buy stop I placed, but I only took at 6 tick scalp off of it, I didn't think we were going to pop a full 8pts, so I missed the trade due to hesitation and thinking WOW, I'm not chasing this type of volatility, I'll wait for a pullback), and the other setup I missed was when I was typing my my afternoon blog entry (I guess I shouldn't have lost focus). I think I should have made double what I made today, but I got a little less confident as the day progressed because my mind frame switched to capital preservation mode. I did push myself a little in the afternoon and put on trades to get to the 3k mark because I was already over 2k and I still had another 3 hours to go to make that extra 1k. I pretty much just watched the trading into the close, missing another 2 setups, but I didn't want to screw up a good day by trading the last 30 min chopp.
P/L= $3,129
No trade log today, only a summary. (Reason: the trade log is too long, like 3 pages)
Charts Time:
YM/ER2 Divergence
NYSE A/D bearish divergence setup (also NQ A/D more bearish setup, -100 AMEX reversal at 11:45am TOO!)
NYSE A/D trend lines helps keep you on the right side of the trade-
NYSE A/D vs NYSE TICK
Market Observations-
Today was a good momentum day where adding to winners payed off.
NYSE A/D showed bearish divergence after the morning pop, as well as ER2 and NQ, while on the other hand YM kept going higher (probably due to lots of retail traders covering shorts, not knowing that YM was overvalued relative to the other indices, as it usually is).
Trading thoughts-
I think I might be wasting my time scalping stocks intraday, because I'm much more productive trading ER2. I tried trading 4 other stocks besides AAPL today, but the orders were taking so long to get filled that I canceled all of them. I'm use to trading ER2 where the fills are pretty much instantaneous, and didn't like having to wait for my orders to be filled while the market was moving (AAPL however is much quicker at getting filles and suites my taste compared to the NYSE listed stocks). I did manage to scrap out 100 bucks on AAPL, but during that same time period I was trading AAPL I probably could have made 2-3x as much trading ER2. If I'm going to trade stocks, I think I need to use a scanner to find my stocks and look to put on trades and hold these trades for 30min or longer instead of trying to scalp them, because I'm more likely to get chopped up scalping stocks. So, I should continue to scalp ER2, and look to find stocks that are trending and put short term position trades on these stocks, instead of trying to scalp these stocks (because my time is better spent scalping ER2 and not stocks).
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