Quickly sharing the things I have been working on & thinking about on the trading front over the past working week.
Spent a good chunk of the working week on my trading.
Executed a bunch of trades on the DAX and US30 indices on 1/5/15/60 minute timeframes. Created some simple indicator with EasyLanguage code in TradeStation to identify specific conditions on the DAX on the basis of Stochastics, price and exponential moving averages.
Focused on spotting good entry levels – worried less about stop setting, target setting and position management. Will get to that later, and using TradeStation back-testing and optimizing for that will be more efficient in any case.
Also doing some practice spotting and trading the setups using ForexTester3.
Incorporating simple support/resistance and multiple timeframe analysis.
Paying less attention to the news feeds and more attention on the technicals.
Focusing on just 1-2 markets – both are equity indices – do they “behave more nicely” than FX rates?
Thinking about whether psychology is overrated in trading & the need to create a validated edge is underrated – particularly in the space for independent retail traders.
Having another side project on the go helps to alleviate pressure on the trading – though I am still pushing very hard to make progress with it. The side project does have a good amount of overlap with trading in any case.
Finally, since there has been less to read on my blog in recent weeks, here are a couple of links to articles that might be a good read for you:
- How US companies buying back their own shares has been fuelling the stockmarket rallies in recent years.
- Morgan Stanley discussion on the rise in implied volatility at the start of February (causing a 10%+ drop in the Wall Street index)
Trade safe & happy weekend!