Thursday, April 23, 2009

ES Trading - 23 Apr 2009

Dear fellow traders :

Another day where I have to recover earlier losses. Entered a long initially when I saw the S&P500 10 min. stochastic slowly trending up. But the ES red candles formed long & furious and from my experiences it's likely to go down deeper, since the pivot point support was also broken. Reversed the trade and recovered the earlier losses as ES plunged deeper.

I entered another trade later to short the ES since I felt the ES might plunge through the pivot point support again since it had done the "strength" to do it earlier. But I closed the trade a little too soon with a -1.50 points loss when I saw the ES holding on the pivot point support. I also felt uncomfortable shorting the ES when the S&P500 10 min. stochastic was trending upwards.

As you can see, the pivot point support was truly broken again, and I was already out of the position, urghh.


Tony Chai


Anonymous said...

Dear Tony

I admire you for your openess and determination to keep trying after so many years.

Trading is not easy. I've been a full-time trader for a few years now, so I know. :)

In the course of finding the "holy grail" in trading, I have seen my US$ account grow to 6 figures and back down to 4 figures and then back and forth.

I have not read all your blogs, but what I can see reminds me a lot of myself in the past when I was still struggling.

There are 2 things that helped turn me around to be a good trader. First, the correct psychology, then a good and reliable strategy.

Whatever trading instruments we choose, whether options, stocks, warrants, futures or forex, the skill is the same -- we only need to understand the instrument and then choose the correct direction to make money.

Among the instruments I listed above, in terms of complexity and difficulty to trade, options rank first. (I have studied and traded options for > 15 years as of 2009)

I do not know why you are changing to futures. Although they are easier to understand compared to options, the 50x multiplier leverage requires tremendous discipline. I would suggest you paper trade or develop a strong and disciplined strategy before continuing.

The other aspect is psychology. If you have not done so, read Mark Douglas's "Trading in the Zone". It has helped me and I know it can help you in managing your fears which I think I read in your blogs.

I wish you success.


Options Trading Tips said...

too bad you cut lost too soon, but i would do the same when i feel uncomfortable with my trades.

Tony Chai said...

Dear Ed :

Thank you for taking your time to post your comment.

I didn't really gave up on trading options yet. It's just that I do not have a good option trading technique which I could apply to grow my capital consistently.

I wonder whether I could request you to be my mentor in this aspect; since you have more than 15 years in the field of options trading.

You can reach me at

Hope you could accept my sincere request.

Thank You Very Much in advance.


Tony Chai