Pin Bar Strategy

Look for Pin Bar formation. Look at its location, it must be clear from all other price action i.e. not located in congestion. Pin Bar signals exhaustion and imminent reversal, therefore the market needs to have been trending for a while and showing signs of weakness. Probability is higher for reversal or at least hitting 2R if Pin Bar has confluence i.e. at Prior Day High or Low, nearby long wicks, obvious support/resistance, etc. Enter 50% retracement of  Pin Bar.

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Recap

So it’s been over a year and I still feel like I know nothing. I wished I kept more detailed journals like when I first started. It has been nothing but a uphill battle. Beginning of January I was honing in on trade styles called Simple Strategy and Seahawk Strategy. Both are very simple to use but effectiveness is not what I feel like it should be and it required that you’d be glued to your monitor all day. Needless to say it did not work out for me. Then I encountered Taylor Technique, where the market cycles between from High to Low days and Low to High days; where prior days high and lows were major pivot points to trade around. It was simple but the clarity of trade signal was not there. Then I began doing something stupid using range bars with stochastics that seemed really good back-testing but failed miserable forward testing and entry/exits were not well defined if at all. It was like, initiate and pray. THEN, I came across order flow and tape reading with Time and Sales charts. I was able to profit very well during a session but could not replicate it. So here I am again at square one. Should I continue? Something inside me doesn’t want to give up.

It’s been a long and tiring road

Where do I start? It’s been a while hasn’t it? A year later and nothing has really changed. My heart still yearns for something it doesn’t know about; my body is aging and signs of youth disappearing. Yet, my youthful soul betrays my complexion. I have wished nothing more than to be free from these shackles that hold me down to the ground. Constantly I stare into the clouds, yearning to be able to float away to wherever I want, whenever I want; not being bound to a single point in this immense universe of ours. My soul is aching and I don’t know what to do to mend for its sickness. All I can do is be patient and resilient.

Don’t let my hopes die,

Don’t let my optimism be extinguished,

Don’t let the weight of this World crush my heart.

Because I can’t bear to see them leave without giving something in return. I owe them so much that it isn’t fair.

I’ve given the wrong people most of my attention and the people who need me the most I have abandoned. This is the darkness that’s inside me, this is the monster that I am terrified of. And I have too much pride to ask for help and forgiveness. Till the day I shed tears of blood, I will fight quietly.

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In the Gauntlet

Things started off swell this morning when I snagged a good 2-3 point profit with one contract, off-setting my losses by about 30%. Unfortunately, this gave me false confidence. My second entry yielded a good $150 but I let it pull-back and hit my stop loss; which, caused me to furrow my brow at the screen as I stare at the $75 loss. I thought to myself ‘why didn’t I just take the profits and run?’ Thinking I could repeat the same task of earning a good point or two, I mistakenly bid with two contracts, hoping to make up for my loss and gain even more like I once had earlier in the day. To my over-eagerness, selfishness, impatience, or whatever you want to describe the greed inside me, I was chopped up like fresh tuna at the fish market. My position quickly went against me and just like that, -$300. And convincing myself that I was still in a stable mind-set I jumped into another position, poof!!, -$400. OUCH! You’d think I’d learn my lesson the first time around but that emotion blinds your rational mind like a thick foggy day in England. But a loss is a loss. To be successful, one must move on and continue to learn from past mistakes and prepare for the future.

What I did wrong:

  • Picking the worst entries possible where market could easily move up or down
  • rushing into bad trades to make up for losses
  • stops still tight but one can only handle so much before throwing in the towel
  • not entering positions at over-sold or over-bought conditions
  • not going slow and steady

What I did right:

  • Looking at 15 min chart rather than just 1 min chart helped establish which side of the market I should be on (long or short) by showing better/clearer structures of support and resistance

Plan of Action:

  • Learn how to use Fibonacci retracement to better pinpoint profit taking
  • only buy or short near resistance or support
  • take a 10 minute break from a solid profit
  • slow and steady

Still keeping my chin up

Day two of day trading. To be honest, it is mentally exhausting. I’ve never focused so hard in my life. I’m literally just staring at the screen one moment and an hour has around gone by. Today I didn’t even play with real money, the market kept proving to me that I suck. What I noticed was that even with one contract, on a limit order, it would take forever to fill; causing me to lose my targets and ending up on the bad side of the stick. Inevitably I ended up negative again but thank goodness I sat this one out.

I really hate to do this but I will start using indicators to help guide my risk/reward management and possibly start memorizing all the bull and bearish price action trends. Is it worth it? My brain feels like mush, goodnight.