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Day Trading Market Recap: 09/07/11

Day Trading today I was either extremely lazy or there weren’t very many opportunities.  If I know myself well I would say that I am lazy but there weren’t a huge amount of opportunities in comparison to yesterdays market activity.   Even though there wasn’t a  huge amount of movement I was still able to extract close to 9 points out of the market.  With only about an hour of trading (1.5 hours with this recap) I would say that is pretty good.

Click on chart to enlarge

The day trading activity in the premarket started with a channel in the early market and eventually broke out  to the upside.  Once the market opened the market was flying to the downside.  I quickly took T1 short and worked out very well.  The decision to have a 2 point target worked out very well as you can see it only went a tick below my target.

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Tradestation Charts for Sept 7th

T2 was also a great trade but it didn’t work out the way I wanted it to.  The market had strong momentum at this point but just didn’t follow through.  I wanted to give it a chance to work even though there was a consolidation. I got out with a 1 tick loss.

There goes lunch

The market flew back to the upside and I was able to get 3 full points on T3.  I didn’t take the trade where the X is marked since this is the third time the market has hit this resistance area.  Once you couple that with a divergence on the 610 that is a recipe for you getting upset that you lost a trade.  Just don’t do it.  Put the mouse down!

Market gave us a deep retracement (which would have stopped you out) and then flew through the resistance area.  With the very strong run up I immediately placed an order and got filled at 1182.75 for T4.  The market breaking the resistance area is a signal for strong momentum up.  The strong run that broke the resistance area is another indication for strong momentum.  Put these together and we have the market telling us: “take a trade even it doesn’t look good!”

The indicators for T4 didn’t have the strongest momentum up but we had the market showing us that we had very strong momentum.  Just because you don’t have the indicators telling you “take a trade” doesn’t mean you shouldn’t take a trade.  This is how you maximize your day trading results by reading not only indicators but also market activity.

At this point I considered just calling it a day since I just got back from petting a cheetah at the Nairobi National Park and was really excited to process the video and place it on my travel blog.  I minimized the charts and once I opened them again I saw T5 setup which I took for a 2 point profit.  Since the I was up almost double digits and it was already 10.30 I decided to call it a day.  I am not lazy said the day trader to himself.

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Day Trading Results for Sep 7th

Day Trading Results for Today

  • Total of 5 trades available
    • 4 out of 5 winners
    • 1 small loss
    • Only an hour of trading
Click here to see the complete list of Market Recaps

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