Tuesday, September 20, 2011

Timeout from my timeout: With charts of $CVH, $POT, $REXX

Although I'm technically on my timeout due to reasons stated earlier, it's actually due more to the fact that I have family visiting this week.  However, I can't help but continue to take a peek to see what's going on in the markets (i.e. seeing what I may have missed).  Taking time away from the markets has been liberating in many ways, and I've noticed that it has given me the ability to see setups more clearly.  Letting your brain rest is a good thing.

Recalling the college years, staying up late into the night cramming for tests just does not work well for most -- there's definitely a point of diminishing return  -- and I believe I'm experiencing the same with trading except on a longer time horizon.  This might be a sign that I need to stop trying to drink from the fire hose and pace myself better to prevent burnout.  Trying to balance my family duties which accounts for a solid 7 hours a day, along with trading which I try and dedicate at least the 8-9 hours a day, and finally sleep which I try and hopefully get 6-7 hours, leaves very little time physically and especially mentally for much else. 

But for the past couple decades, my fascination and passion for the markets has always remained, so there's no use in trying to repress it.  Time to continue marching forward, working on getting a little better and better, day by day.  Steady progression.

* * * * *
Some interesting charts from today (9/20):

CVH - 5min had what I call a "3 bar reversal" [3br] triggered on bar 9.  This type of reversal pattern is usually good for a scalp and possibly a decent move, as was the case with CVH.

CVH 5m 9/20/2011
 POT - 5min/2min had a couple good short entries:
1) Short triggered below 12:25 red shooting star after a "VWAP line cross over 5ema" [vlco] took place.
2) Short triggered on break below narrow 14:15 bar, which was a pullback up to the opening range low. 

POT 5m 9/20/2011
REXX - 5min/2min - "VWAP LineBounce" [vlb] long setup on 12:45 bar.
REXX 5m 9/20/2011
* * * * *
I've missed out on some good setups.  But overall, the markets also look a bit neurotic, so maybe I'm not missing too much.  OK, it's time to go back to my timeout.


Tomross58 said...

Hey Grove,,

I too have taken a time out or two in my learning journey and found myself thinking about charts and going over my strategies in my head when I was away but a break can be needed even if you dont realize it. I know I am determined to master myself in the stock market and reading your thoughts again remind me of me. Keep it up


Grove Under said...

Thanks for the comment. You make a great point, I think the brain needs some time to "digest" all the info during a steep learning curve.

I'm starting to think that I should schedule some mandatory time off from trading, just to rest the mind. It seems counter intuitive, but I'm starting to believe more and more that it's necessary for long term success.