09-14-14 Trade Plan

For the NASDAQ this was the third week in a row of nothing happening and the Russell is having a lot of trouble holding up.  This week there really isn't anything to talk about, not many setups and choppy action in the indices.  That makes me not want to trade much and pull back money.  My trading style is aggressive when price is moving well and retreat when things aren't going smoothly.  So lets look at where we are at.

09-07-14 Trade Plan

All we got this week in the indices was some chop within the up trends on the daily/130m time frames.  While this chop is taking place we are seeing some new stocks setting up and some old stocks falling out, which is exactly what you want to see for some trend continuation.  We still haven't seen any weakness in the indices and with Friday's low I think we have a defined area that if broken will show weakness.

Two notable names this week that saw some heavy selling, both huge winners this year.  GILD and AAPL.  This is why you have to use your stops in relevant areas to get you out when swing lows start breaking.  Both of these were in 30 minute up trends and holding every single swing low along the way, the signal to get out of the way for me was when the swing low couldn't hold.  Simple as that.  All you need is relevant price points and you can make quick effective decisions.

08-31-14 Trade Plan

We had some sideways price action this week within the larger up trends.  The week finished out re-asserting higher highs and lows in the 30 minute trend after some chop during the week.  This move we are in is incredibly strong especially in the NASDAQ and the NASDAQ stocks are trading like a dream.  We don't know how long these trends are going to hold, all we can do is follow the trend and use swing points to manage risk.  The Russell is also holding a 65m trend very well and is still in a pattern of higher highs and lows.  Next higher high would require breaking $117, or last weeks high.

Action Reaction

Here's a topic that I don't discuss enough so let's do it.  Action reaction, we all know what it means but how does this fit into an execution strategy and analysis of a situation?  It's a seemingly very simple equation, but your emotions make it an individualized process which makes it more complex and something you have to figure out.

It should be action-emotion-reaction.  Studies have been done on how our emotions effect our decision making and what they found is that we essentially make a decision based on what emotion we are feeling.  What this means is we have pre-programmed decisions based on emotion.  Not specific pre-programmed decisions but we make the decision based on that emotion that we think will get us back to normal.  It's a mind game you are playing with yourself.

08-24-14 Trade Plan

It was another week of up trending and some very aggressive price action as well.  There really hasn't been a swing low since last Friday (15th) when the big sellers came in.  This is price action going straight up, it does happen in this market at least.  Every single time we get a bounce off the lows we go straight up like this holding 15m trends with few to no major swing lows, and every time you have people going crazy during market hours.  People going crazy because "this price action is so great" and people going crazy because "the bulls are kicking our ass" and everyone is always seemingly surprised.

People tuned out of the noise reading price action objectively don't go crazy with the crowd, and the understanding of price paired with preparation makes being surprised not part of the equation.  It comes across as boring, un-involved to newer traders because there is a huge emotional party going on that we don't participate in.  I used to play that game as well, until I realized it was a psychological barrier to the level of trading I want to get to.  Turn off the CNBC forever, it's a drug.  I haven't even seen that flower logo thing in over 6 months, maybe longer.  Look at things from the outside in and everything becomes very clear.  Pick up a hobby for the down time you have during positions.  Ok time to get back to the regularly scheduled program..

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