bakedbeans' learning journal

[bb01100100]

Update:

Net +0.88%, +2.68% cumulative, objective 10%.

I stayed up late to trade the post-news movement after CPI, based on the idea that the market would be slow/awkward the next morning (my 5am is 2pm NY). I'm glad I did because I found it very hard to trade the next morning - heavy and a super slow grind higher with tight ranges (circa 5-6 ticks with 100+ lots traded). I stopped after netting 1pt.

For the post-CPI trades, that went well; the number came out and the market pushed higher, higher then built some volume up high, giving me a chance to enter short with a wide stop based on the idea that unexpectedly higher inflation wasn't a good thing.

I netted about 8pts on that short, but in typical form I exited far too soon.. happy to get it right and always wary of someone running stops.

It was good to watch the order flow; from fast and flowing, one-way, to more and more size coming in to hold the downward movement, to an area being established and then a small (4-5pts) push higher.. a good example of the power of trading what you see.

I imagined several trades afterwards based on volume building up at price areas and moving away from it.. but didn't want to get involved after the one-way movement down 20pts+. Knowing vs doing. More to work on.

Actually.. I should have a micros chart open for those trades.. get the mental practice of trading what I'm seeing, but with the least amount of risk.