Fri May 31 Trades & Journal

Short 1 NQ 3008.5, +3.0
Short 1 TF 992.4, +1.4
Short 1 ES 1652.5, -0.5
Short 1 YM 15318, +10
Short 1 TF 992.4, +1.0
Long 2 TF 990.8, 990.3, -1.0, -0.4
Long 2 TF 988.6, +1.0, +1.5
Total ES -0.5
Total NQ +3.0
Total YM +10
Total TF +3.5

Some similarities to yesterday's opening for the TF, and Tuesday's opening for the YM, but I missed both opening breakout plays. Those require some real focus and attention to the subtlest detail in the very early bar formations... and a special willingness to play a breakout. This has never been a skill I have enjoyed, but I will continue to point out my shortcomings in this regard with the intention of eventually overcoming the mental block I seem to have against it. Today's TF early spike had similarities to yesterday's, but this one didn't stop me out, and the short signal came right at the gap-close. Same for YM and ES. On a pullback long, got stopped out as it melted through initial support, but recouped losses + a net profit with a re-entry, as the signal was just as valid lower down... in fact, better. See yesterday's comments.... ...and a good weekend to all...

Thur May 30 Trades & Journal

Short 2 TF 992.2, 993.2, -1.4, -0.4
Short 1 NQ 3007.25, -2.0
Short 2 TF 994.7, 994.7, -0.5, -0.5
Short 2 TF 995.0, 995.0, +1.0, +1.5
Short 3 ES 1657.00, 1657.25, 1657.75, +0.5, +2.0, +3.0
Long 1 TF 991., +1.0
Long 2 TF 989.2, 989.1, +1.2, +0.5
Short NQ 3013.75, -1.75
Short 1 TF 990.7, -0.7
Short 1 NQ 3014.75, -0.0
Short 1 TF 992.1, +2.0
Long 1 TF 988.9, +1.0
Total ES +5.5
Total NQ -3.75
Total TF +4.7

Recovering from an initial signal failure can be jarring. Today, the big spike in TF hit 3 resistance levels during the short signal zone on the final push up. It stp'd me out twice, but when it finally hit yesterday's globex night high, I rallied confidence to short it a third time. A short signal for the ES followed quickly after that. Although I didn't ride the TF down to its next solid buy signal, I did recapture most all of my losses, while the ES short made a the first net profit of the day. It use to be much harder for me to re-enter a position after being stopped out, but as long as the signal is still valid, then that is what the game plan calls for. Volatility can be your friend, but only if you wait patiently for the signals to appear, and quit re-entering when those signals are overcome and cancel out. Having a tight trade plan with precise entry models helps keep both the fear and the doubt at bay. Just follow your plan. If it works far more often than it fails, the net result should be profitable.

Wed May 29 Trades & Journal

Trade Summary
Long 1 TF 987.3, +1.2
Short 1 TF 989.4, +1.2
Short 2 YM 15306, 15305, -5, +7
Short 1 NQ 2995.0, -1.0
Short 1 TF 991.0, +0.2
Short 1 TF 990.4, +2.0
Long 1 NQ 2995.75, -0.5
Long 1 NQ 2995.25, +4.0
Long 1 TF 984.4, -0.4
Short 1 TF 983.9, -0.4
Short 1 TF 983.3, -0.4
Long 1 TF 981.6, +1.0
Long 1 TF 980.1, -0.2
Long 1 TF 979.2, -0.0
Short 1 TF 983.8, +1.0
Total YM +2
Total NQ +2.5
Total TF +5.2

Although TF trades showed good profits in early going, a hesitation at an ES short signal kept me on the sidelines for the big decline. Inflection trigger levels in the TF after it got started just chopped me up. This is typical of 1st Trend Direction breakdown triggers. Signals are in place for further extension, but breakouts are choppy and require larger stp's and some faith. The one good thing I can say about the decline is that I did not lose much trying to fish for the bottom. These extensions have to run their course, and when a bounce was finally in place, was able to take a quick exit short from resistance near the end of the 1st Frame (11:15am ET). So except for hesitating at the ES HOD for a short entry, I can say that I mostly traded my plan, and quit as usual at the end of the session as the early volatility was subsiding. Stay within your Trade Plan. If profits are alluding you, then perhaps your Plan needs to identify better opportunities. If your entry signals are good, then improvement will come as you override the mental blocks that keep you from taking entries in your plan. Discipline takes repeated practice. And it takes witnessing consistent payoffs to your entry signals before you have the full confidence and faith in taking them.

Tues May 28 Trades & Journal

Short 3 TF 1001.9, 1001.9, 1002.2, +.5, -1.1, +0.5
Short 2 NQ 3032.0, 3034.0, -1, -3
Short 2 ES 1670.75, 1670.5, +0.5, -0.75
Short 2 TF 1004.2, 1004.3, +0.5, -0.1
Short 2 TF 1004.1, 1004.4, -0.4, -0.7
Short 2 YM 15501, 15501, -7, -7
Short 2 YM 15506, 15505, +7, +12
Long 1 TF 1003.0, +1.0
Long 1 ES 1665.0, -0.5
Long 2 TF 1000.5, 1000.5, +0.5, +1.2
Total YM +5
Total ES -0.25
Total NQ -4
Total TF +1.9

A student observed that the TF gave an ORB breakout signal today, and would have captured the early explosive Gap-n-Go rally that followed. But it was clearly eye-of-the-beholder, and I didn't recognize it. Faced stp-outs at the turn signals at the highs, except YM, so was mostly playing catch-up to losses in the early going. Big gaps often suck the energy right out of the markets, but today, it was more of surviving the slop at the turn signals, so is hard to learn from one's stp-outs on a day like today. Sometimes, just treading water is an ok day.

Mon May 27 Memorial Day

Fri May 24 Trades & Summary

Long 2 NQ 2975.0, 2974.0, +3.0, +2.0
Long 1 NQ 2972.5, -2.0
Long 1 NQ 2969.25 +3.0
Long 1 ES 1638.0, -0.75
Long 1 TF 974.2, +1.0
Long 1 ES 1636.0, -1.25
Long 1 NQ 2966.5, -1.0
Long 2 ES 1635.5, 1635.5, +1.25, +3.0
Short 1 NQ 2977.25, +2.0
Long 2 TF 975.6, 975.7, +2.0, +0.5
Total ES +2.25
Total NQ +7.0
Total TF +3.5

As Ice Cube once said, "today was a good day....didn't even have to use my A K " . Stayed with the plan pretty well but did miss the TF inflection. Instead, I focused on the signals I could use effectively, like the ES and NQ. Stay flexible. You have to monitor all 4 contracts, the YM, ES, NQ and TF if you expect to capture the trends and the breakouts. And besides, they lend such better trend signals for the bigger picture when seen as a whole. Want to wish all a good Memorial Weekend....

Thurs May 23 Trades and Journal

Long 1 YM 15187, +10
Long 1 NQ 2968.75, +3.0
Short 3 TF 977.3, 977.0, 977.3, +0.8, -0.4, +1.0
Long 1 TF 973.1, -0.4
Long 2 YM 15205, 15204, +5, +19
Total YM +34
Total NQ +3.0
Total TF +1.0

There a subtle difference between being patient and striking without hesitation when the 'iron is hot'. Today, I missed a pretty obvious buy signal in the ES by hesitating when it arrived. ..and it came conveniently after the 10am econ number was out and being well digested. Before I blinked, the ES had ralllied 10 pts, without any participation by me whatsoever. Thereafter, I was left with counter trend shorts in the TF. I exited those a bit too quickly as it turned out, but counter trend trades are safer with quick exits, and these were definitely 2nd trend shorts, always riskier. But with some profits in the YM and NQ, was an ok day just the same. Nothing smarts more than a trade you miss. And the missed ES trade continues to smart even after the end of the 1st Frame where I normally cease my trading for the day. Missed trade opps usually smart even more than actual cash losses. Such is the way it works on us. Be quick when the signal is clear, and slow to exit as the trade develops. That is usually the right mix of patience and immediacy.

Wed May 22 Trades & Journal

Long 1 NQ 3027.25, +3.0
Short 2 NQ 3032.75, 3033.0, -1.0, -1.5
Short 3 NQ 3035.0, 3035.0, 3035.75, -1.0, -1.75, -1.75
Short 1 NQ 3035.5, -0.5
Short 3 TF 1003.1, +1.0, 1003.3, -0.5, -1.0
Long 1 TF 994.1, +1.0
Short 1 TF 984.7, -0.4
Short 1 TF 985.4, +3.0
Total NQ -4.5
Total +2.1

Early long in NQ was not held into the big rally. Not because I should have foreseen it, but because I only had a 1-lot, and took a mechanical exit with a 1-lot profit. The fault, therefore, was not having better size to manage.
Early shorts were stp'd out but the fault was in repeating them as velocity increased. Successful shorts would have captured the Highs at the second fractal level, but was starting a webinar for Ninjatrader and was not viewing the action. The sell signals were, however, pretty clear at the highs, and several students messaged me later how successful they were when the market collapsed after the Noon Hour High. The last frame of the day tends to be resolution to the midday consolidation. And today's last trend down was no exception. I got in sync with that by shorting a bounce for a nice piece of the ride back down to new lows, although I was stopped out of it initially when it exceeded my entry level, forcing me to re enter. I suffer from a temptation to use the same trade model strategies in the last frame as I do in the first. Today, I waited more patiently and got in sync with the developing down trend. A Trade Plan cannot just assume that the 1st frame strategies can be used in the last frame of the day. This is where traders make mistakes.

Tues May 21 Trades & Journal

Trade Summary
Short 2 YM 15366, 15364, -10, -6
Long 3 TF 995.5, 995.5, 995.8, +0.5, +1.0, +0.5
Long 1 TF 995.5, -0.5
Long 1 NQ 3014.5, -1.5
Long 2 YM 15306, +7, +14
Long 1 TF 993.4, +1.0
Short 1 TF 995.9, -0.1
Short 1 NQ 3023.25, +4.0
Short 1 NQ 3023.50, -1.0
Total YM +5
Total NQ +1.5
Total TF +2.4

Technical analysis exists to identify probabilities, not perfections. Today in the chat room, I called 3 contracts short near the highs. I got stp'd out of the YM short, and never filled either the NQ nor TF short entry levels. And then it collapsed. But a counter-trend trade and finally a bottom signal allowed me to at least make a profit. Be prepared to flip your rally hat around the signals come. The trader's job is to avoid the infliction of trend prejudice and trade what appears at the right side of his video screen. Stay with the plan, not your opinions.

Mon May 20 Trades & Journal

Long 1 TF 993.4, +1.0
Long 1 TF 993.4, -0.5
Long 2 ES 1662.75, 1662.75, +1.0, +2.0
Short 1 NQ 2625.25, -0.25
Short 1 YM 15322, -3
Short 2 TF 995.9, 996.0, -0, +0.5
Short 1 TF 996.4, +1.0
Long 1 TF 994.6, -0.1
Short 1 TF 994.2, -0.4
Long 1 NQ 3026.0, -1.0
Short 2 YM 15348, 15348, -3, -3
Short 2 TF 999.0, 999.1, -0.5, -0.2
Total ES +3.0
Total YM -9
Total NQ -1.25
Total TF +0.8

Treaded water with failed short signals while monitoring TF's approach to the decennial 1000 number. ...and then the local cable internet crashed from here in the midwest... probably storm related... You have to be prepared for all contingencies while trading futures. That's why you should also place orders with automatic OCO orders. That way, stp's and targets are placed with the broker as the entry order fills. Should you crash at your desktop, the trade at least has that much protection.... assuming the broker doesn't crash too.... Trading involves risk. Be prepared for it.

Fri May 17 Trades

Long 1 NQ 3007.25, -2.0
Long 2 YM 15233, 15233, +7, +10
Long 2 TF 987.4, 987.3, +0.5, +0.8
Short 1 TF 990.4, +1.0
Short 1 YM 15265 -2
Long 1 TF 991.2, -0.5
Short 2 TF 992.4, 992.3, +0.2, +0.5
Short 2 YM 15277, 15279, +10, +7
Long 1 TF 992.9, -0.0
Long 1 YM 15253, -0
Long 2 TF 990.5, 990.7, -0.5, +0.5
Short 1 TF 990.7, -0.5
Total NQ -2.0
Total YM +32
Total TF +2.0

Thurs May 16 Trades & Journal

Total 2013 Trade Summary
Long 1 NQ 3005.25, +4.0
Short 1 NQ 3011.75, +2.0
Short 2 ES 1657.5, 1657.0, +1.0, +2.25
Long 1 TF 982.3, -0.4
Long 1 TF 982.4, +1.4
Short 1 TF 985.8, +1.0
Total ES +3.25
Total NQ +6.0
Total TF +2.0

Trading the 1st frame (9:30 to 11:15am ET) on a day like today requires pretty precise entries. Signals come quickly, and the best trades come from a plan that incorporates reversal signals. Keep your attitude neutral as to trend and trade from both sides while the market tries to sort itself out. A trend may eventually appear on such days as the 1st frame is coming to an end, but the volatility usually dissipates by then too, and you're back to a more grinder like condition. The waters seem calmer and attract less experienced traders who feel they need time to sort out their tape reading and intuition. This usually demonstrates that they do not come to the market with a trade plan. If they had one, the volatility would be attractive to them. They trade based on which way they think the market is trying to go. "...most of the money that is lost in the markets is lost by traders who thought they knew which way the market was supposed to go..." ---The Douglas Premise. Read about this and the accompanying Valhalla Corollaries in the free ebook from ValhallaFutures called Self Recognition. To trade, you must know yourself. But to learn yourself, you must monitor your reactions against the execution of a trade plan. Without this, all you are doing is trying to take the temperature of your daily intuition and tape reading skills. Don't tape read. Trade with a plan. A plan will set you free of stress and exhaustion. Either the unfolding market condition is in your plan, and you trade, or it is not, and you wait. Stay relaxed. Stay focused. Stick with your Trade Plan. Let the trade plan take you to consistent profits.

Wed May 15 Trades

Long 1 TF 982.3, -0.2
Short 1 TF 980.0, -0.3
Long 2 NQ 2993.25, 2992.75, -1.5, -1.0
Long 2 YM 15160, 15160, +7, +10
Short 1 TF 984.0, -0.5
Short 2 TF 985.0, 984.9, +0.4, +1.6
Short 1 YM 15187, +10
Short 1 YM 15191, +10
Short 1 TF 985.4, -0.0
Short 1 TF 987.2, -0.2
Total YM +37
Total NQ -2.5
Total TF +0.8

Tues May 14 Trades & Journal

Short 2 NQ 2987.0, 2986.25, +2.0, -2.0
Short 2 NQ 2987.5, 2987.75, +2.0, -2.0
Short 2 YM 15093, 15093, -2, -9
Short 2 TF 978.0, 977.9, +0.4, -0.6
Short 2 YM 15101, 15101, +7, -7
Short 1 NQ 2992.75, -.75
Short 2 TF 979.4, 979.9, -1.2, -0.5
Short 2 TF 982.0, 982.0, -0.2, -0.5
Total NQ -0.75
Total YM -11
Total TF -2.6

There is no predicting the market. And grinding bull rallies like today have appeared without apparent climax signals for many many months. Just note the NYSE tick chart. Not since mid April have we even seen a +1000 tick reading. ...and still the bull climbs on. As short term traders, we care little that many daily frame technical sell signals have yielded naught for in the larger frame. Our playground is the lowest time frames, as our focus is just the 1st session of the day, from the open to around 11:15am ET, and we don't hold positions overnight. In this time frame, compare the charts of Friday to today. They couldn't be more different. Friday's swings provided great reversal signals for short term intraday swings, the fodder of intraday, short term trading. Today was a persistent grind through the whole 1st frame, characterized by only the shallowest of pullbacks, and often the choppiest of breakouts. What to do if no initial trend-following signals appeared at the open? Acknowledge that not every day is the same, nor offers the same trading opportunities. Keep your losses on such days small. Avoid 'revenge trading' that stirs the anger and angst over having missed a move. Try not to give back all the profits from the previous day's successful swings. Tomorrow is another day. It's the end of the week and the end of the month that really counts. And if you dig yourself into a hole on any difficult day trying to stay even or get even, you're more likely to give back the gains of previous days before making a difficult day work. Stay disciplined.

Our trade plan allows for several setups that provide an early signal on Persistent Trend Days. The plan also provides for entries in the PM session on this day model when a deeper correction can finally appear. Stay withing your trade plan. Stay patient. Stick with the plan, not what you think the market 'must finally do'. ...and good trading to all.....

Mon May 13 Trades & Journal

Short 2 NQ 2926.25, +2.0, +3.0
Short 1 TF 971.6, +1.4
Long 1 TF 969.3, -0.4
Long 1 YM 15028, -2
Long 1 TF 969.0, -0.5
Long 2 NQ 2971.0, 2970.5, +2.0, -1.0
Short 1 NQ 6971.25, -1.5
Short 1 TF 973.0, +2.0
Short 2 YM 15056 15055, +7, +8
Long 2 TF 969.6, 968.8, -0. +2.0
Total NQ +4.5
Total YM +13
Total TF +4.5

Volatility can be your friend if you have method of identifying the potential reversals. If not, none of it will make any sense. And even with a methodology, you must be one step ahead of the signals so that you can take them quickly then they actually arrive. We call this having a trade plan. When it appears at the right edge of your video screen, you take the trade. No thinking allowed. You dont' have time to wander about the array of technical indicator information to assess things. It's either a trade, or it's not. If your methods identify successful entries significantly more often than they fail, you have a working trade plan for consistent profits. Come join us at ValhallaFutures and consider Serial Sequent Method as the basis for your trade plan.

Fri May 10 Trades and Journal

Long 2 YM 15038, 15034, +1, -3
Long 1 TF 15033, -5
Long 2 YM 15026, +10, +20
Short 1 ES 1628.5, -0.5
Short 1 TF 969.8, +0.7
Long 2 TF 969.1, 969.1, -0.2, -0.4
Long 1 TF 968.1, -0.7
Long 3 NQ 2861.75, 2860.75, 2860.75, +2.0, +2.0, +3.0
Short 2 TF 968.5, 958.4, +0.5, -0.5
Short 2 YM 15051, 15051, +7, +8
Total YM +43
Total NQ +7.0
Total TF -1.1

It's always the fish that get away you remember the most... Today's midmorning collapse came with beatiful sell signals, first at the highs in the NQ and TF. I was working higher entry targets for both and failed to get on board. Fair enough. But on the way down, I failed to take the shorts at breakdown inflection levels because I was drawn into the relative strength of the TF against the far weaker YM. YM is seldom a good leader. But that doesn't mean it can't lead. And it also doesn't mean TF action appearances will be enough to keep it from breaking at inflection triggers. I had doubts. I let those doubts interfere with my trade plan. I missed the most important trades of the session because of those doubts. The question is, how to improve...? How to really change one's behavior...? Relive those moments that kept you blocked and away from the trades your trade plan called for. What were you thinking at those critical moments....? What were you feeling....? The point is not to try to eradicate those feelings. The very same ones will reappear next time. In fact, count on it. Use it. When that particular combination reveals itself again, use it as a signal to enter your trades. Teach yourself a new reaction to those feelings. You can't change those emotions. Don't expect to. But you can change your response. This is the stuff of self discipline.

Thur May 9 Trades & Journal

Long 1 YM 15066, +10
Short 1 NQ 2965.25, +3.0
Long 2 TF 966.8, 966.2, -0, +1.0
Long 2 YM 15066, 15064, -6, -4
Long 1 TF 964.5, +0.5
Long 1 TF 964.5, -0.4
Short 1 TF 963.4, -0.1
Long 1 NQ 2955.0, +1.25
Total YM -0
Total NQ +4.25
Total TF +1.0

Today demonstrates how important the mental attitude is....even when your breakdown signals are as accurate as Serial Sequent. Today, the slow grinding collapse in the TF came against a steeply dropping TRIN. In fact, it nearly hit .60. That usually means buying is already dominant, and a turn is on the way. But the structure signaled 2 distinct breakdown triggers. For about 1 minute, I was in one with a short at 963.4. It had a 2 pt target to the next support and would have come just shy of that before turning. But I lacked the faith. I faced trading today on a shortage of sleep and a difficult wake-up against the rain and the humid air. Franky, I was half asleep and maybe should be grateful for the profits I did make. But this demonstrates how important it is to be fresh and mentally strong. Trading requires faith in your methods, and the trade plan will produce the best trade signals right at the places most difficult to trade them. That's how the market works. Don't expect anything less. "If it was easy, everybody 'd be rich and nobody 'd be poor."... as my mentor Randolph Newman use to say.... Stay disciplined.

Wed May 8 Trades & Journal

Short 2 TF 964.8, 964.7, -0.4, -0.5
Short 1 NQ 2945.5, -2.0
Short 2 NQ 2948.0, 2947.75, -1.0, -1.25
Short 2 NQ 2949.5, 2949.25, -1.5, -1.75
Short 3 YM 15002, 15002, +7, -0, -8
Short 3 TF 965.9, 965.7, 965.7, +0.5, +0.5, +1.9
Long 1 TF 963.8, -0.2
Short 2 YM 15013, 15013, -3, -5
Short 2 YM 15013, 15011, -3, -5
Short 1 TF 967.4, -0.3
Total YM -17
Total NQ -7.75
Total TF +1.5

On some days, the action is better for trading than others. Just don't dig yourself in a hole for the week trying to make a bull grinder work. Stay within your plan. Tomorrow is another day.

Tues May 7 Trades

Short 2 NQ 2954.5, 2954.0, -1.0, -1.5
Short 2 TF 963.3, +0.5, -0.5
Long 2 TF 958.6, 958.6, +0.5, -0.5
Long 2 YM 14914, 14915, +7, +14
Short 2 TF 959.3, 959.5, +0.7, +0.5
Short 2 YM 14942, 14942, -5, -5
Short 1 NQ 2946.75, +4.0
Short 2 TF 961.2, 961.2, +0.5, +2.0
Total YM +11
Total NQ +1.5
Total TF +3.7

Mon May 6 Trades

Long 2 YM 14889, 14890, +2, -6
Long 2 NQ 2944.25, 2943.75, +2, +3.0
Short 1 TF 954.7, -0.6
Short 4 TF 956.0, 956.5, 956.4, 956.6, -0, +0.5, +0.5, -0.3
Short 2 YM 14911, 14910, +7, -2
Short 1 YM 14916, +12
Short 1 NQ 2950.0, +3.0
Total YM +13
Total NQ +8.0
Total TF +0.1

Fri May 3 Trades & Journal

Short 2 TF 955.7, 955.6, +2.0, +0.5
Short 1 NQ 2843.25, +5.0
Short 1 YM 14939, -7
Short 1 TF 958.4, +1.2
Total YM -7
Total NQ +5.0
Total TF +3.7

They say the news drives the markets... and it's certainly hard to deny on a day like today. But we're traders. And any serious perusal of chaos structure reveals patterns that reappear continually as price fleshes things out. Today's first sell signal in the TF for instance, came at a Measured Move target of 955.8 that has been standing since the middle of December 2012. With the premium in profits and a 2nd contract exit that turn afforded us, we held the 2nd unit into the 10am news not having a clue as to what an "ISM Non-Manufacturing PMI" or "Factory Orders m/m" number would mean to the market. If the number was weak, but not unexpected, is it really bullish...? Who knows. Who cares... they'll be talking about it all morning at the business show news desks and never figure it out. Do you really think they discuss it all on the floor of the S&P pit before deciding what to do ..? Whatdayakiddinme? We entered on a sell signal before the news. The news perhaps helped feed the outcome of the selling. We exited ON the news. The second TF sell signal fulfilled the Sequent Wave Structure and helped make us a daily profit goal before the end of the 1st Frame of the day (9:30 to 11:15am). Come join us at ValhallaFutures and learn how to dissect the underlying structure of the markets and use the news in your trading plan. ...a good weekend and good trading to all...

Thur May 2 Trades & Journal

Short 1 NQ 2888.5, +2.0
Short 2 NQ 2887.75, 2887.25, +2.0, +5.0
Long 1 YM 14709, -0
Short 1 TF 931.7, -0.2
Short 4 TF 932.6, 932.5, 932.6, 932.5, -0.5, +0.5, -0.3, -0.2
Short 2 YM 14738, 14738, -3, -3
Total YM -6
Total NQ +9.0
Total TF -0.7

The Persistent Trend Day model as an interesting attribute. It seldom repeats itself two days in a row in the same direction, but often repeats itself two days in a row in the OPPOSITE direction. Thus today's bull breakouts by the wily TF paralleled bear action in yesterday's steep decline. Although the NQ short entry fades taken in the early going were well within the scope of the trade plan, so were the bull breakouts. I took the YM for this initial breakout, ducking the call to take the more volatile TF, and bought a dud in the process. I stopped out the YM at breakeven while the TF exploded onto huge gains. There is an important lesson and trade plan rule to learned here (not that I haven't berated myself for failing at it many times before...). Use the more volatile leadership instruments for initial breakouts. Don't shy away from it. Get out on the edge of the board and hang ten over the surf. Avoiding the appraised pain of playing breakouts won't be ameliorated by using the laggard. It more likely will only ensure your failure. Play the leadership. The laggards will more likely provide pullback entry opportunities once the leadership is a bit spent. Learn market behavior attributes. Make them a part of your trade filters. Put those trade filters in your trade plan. Trade your plan.

Wed May 1 Trades & Journal

Short 2 NQ 2880.75, +2, -1.25
Long 3 TF 937.3, 937.5, 937.3, -0.5, +0.5, +0.5
Long 3 TF 936.5, 936..5, 936.1, -1.4, -0.5, -0.7
Long 2 TF 935.2, 935.2, +0.5, -0.0
Long 2 NQ 2874.25, 2874.25, +2.0, -2.5
Long 1 TF 931.0, +1.0
Long 1 NQ 2869.25, +3.0
Long 1 TF 929.7, +1.3
Long 1 TF 930.6, -0.7
Long 2 TF 930.3, 930.1, +2.0, +0.5
2nd Frame PM Trades:
Short 1 TF 928.8, -0.4
Short 1 TF 928.6, +2.0
Total NQ +3.25
Total TF +4.1

Trading around the news can be challenging. Today, we did it twice, once pre-10am before the econ report number released and then again around the FOMC. Beginners always question whether this is a prediction of the news outcome. And if not, how come it so often goes our way. That is, we position before the news and exit into it. Firstly, bracketing the news in order to try to capitalize on the outcome post-release is strictly an amateur play. And yet, I have seen so many teach this supposed risk-less trick in countless seminars. Apparently, none of these so called instructors have actually taken any of those news bracket entries in their own accounts. If so, they'd know that far too often the fills for such trades are at extremes, and only lead to quick or immediate stp-outs. How then, does not position for the news BEFORE it comes out...? The answer... by not positioning for the news at all. We position based on the technicals pre-news, using Serial Sequent Wave Method. If the market has already turned based on those methods and we have at least gotten enough profit to exit partials pre-news release time, then we can risk riding through the news with a resting net break-even stp-loss order. And far more often than not, the reversal seems to have 'predicted' the outcome of the market, and we exit the remainder on further celebration. Once the news settles down, we can then look for potential reversals in the opposite direction, if any. This is how we seem to be 'playing' the news, but in reality, are only using the extra volatility the news affords to our advantage. The mistake most traders make, apparently suffering from the same miseducation of the talking heads on such programs as Bloomberg and CNBC, is the underlying assumption that the news dictates the trend. If this were true, then bottoms would never come on bad news and tops never come on the good. But haven't you, the lone individual, the meanest of market subjects, noticed even without an ivy-league degree or an ivory tower pedigree that such is, in fact, precisely the case....? That bottom bull reversals accompany bad news and tops often set up with the good....? Then why, with such simple but repeatedly clarified observations should you leap to the opposite conclusion that the news drives the markets..... Is it that you feel so compelled to be in the company of television news anchor fools that wouldn't know a stp-loss from an MIT order? Think for yourself. You don't need an impressive credential or financial degree to trade the markets. In fact, your chances of success may just be better without one. Find a plan that is constructed around working models that occur repeatedly in the market place with some regularity. When they appear at the right edge of your video screen, take the trade. With a few filters and some trade management rules, this is your trade plan. Trade the plan. Become disciplined. The 'degree' to which you stay focused on your plan is the only credential necessary for success in trading. We don't predict. We only position. For more insights into market psychology, email and ask for the free ebook "Self Recognition".