bondtrader's Blog

Futures Trading, Musings, and Random Thoughts

Friday, June 04, 2004

Thanks for your comments!

Thanks to everyone who has taken the time to comment on my posts. Your input and feedback is much appreciated.

To Trader Mike, thanks for that link (and for turning me on to Taleb); I'll check it out. It makes me feel better to know I'm not the only one struggling with hesitation.

To Guy, thanks for adding ZB to your pivots. There are very few resources out there for bond traders. I'll make sure to use them and let you know if it works. I'll post it in my links as well. Are you already on my Blogroll? (You look familiar.) If you are, just want to say I enjoy your posts.

And to "i don't like my job guy", thanks for your honesty and suggestions. You're right on the money. That is what I am working towards. I hope you keep coming back and track my progess. My goal is to achieve exactly what you were describing, to divorce the hope and fear from myself and just trade like a machine.

Have a good weekend, everyone!

Let's Get Real!

Switching to real-funds trading is harder than I thought.

I let 3 trades go by for a different number of reasons, one of them caused by nothing else but fear. It was right there in front of me, and I remember thinking "Boy, it's hard to pull that trigger." And all 3 trades were beautiful trend trades. Ouch.

I eventually put on a trade, towards the end of the trend, and I simply took 1 tic out of it, and good for me, because the market turned quickly after.

BUY @ 104 9/32
SELL @ 104 10/32

It's going to take some more work to get to where I want to be. It's time to go back to the basics, pull up my sleeves and get to work.


Interesting. I was just listening to Nassim Taleb, and he just said "Reality is far more vicious than Russian roulette". Probability is the degree of confidence we have in a possible outcome. We play the odds, follow the rules. But, the rules of the game can change in reality. Well said.

Thursday, June 03, 2004

Recap of Trading Day

That's it. No trades today.

Bond futures just moved sideways until the close. The last trade to be had was around 8:00am PDT (11:00pm EDT), which was a potential 5-7 tic trade. I wasn't focused when it happened (too busy updating my blog, on the importance of discipline and focus, ironically). That's why it's important to be disciplined and focused!

ANOTHER LESSON LEARNED: focus on the market during the trading day. Everything else can be done outside market hours.

Oh well, there will be more trades tomorrow.

Doing Nothing is Doing Something

In the markets, doing nothing is also as valuable as doing something. When the market is choppy like this, doing nothing and standing aside is a valid action. Preserve your account and your sanity.

(Note: I color my chart background grey to make it even easier to see.)  Posted by Hello

Discipline and Focus

The most important characteristics of a consistently profitable trader are DISCIPLINE and FOCUS.

Without them, the trader is unprepared to take money out of the markets.

Traders are like athletes: the practicing is done outside of the arena, and all you need before you step into the arena is unbending discipline and unwavering focus.

Opportunities come at the most unexpected times. You can be watching the market the whole day and nothing happens, and just when you turn around to start doing something else because you're bored, the market turns on a dime and, whoa, there's the opportunity you've been waiting for all day.

That's how it is in the markets... and in life.

DiNapoli confirms Breakout Trigger LSMA25/TSF System

In one of my trades today, I saw a real-time example of how clearly the DiNapoli indicators confirm the signal generated by my main system: Breakout Trigger LSMA25/TSF. Preferred Stochastics were clearly above MACD when the signal was given by the Breakout Trigger system; it was also good even on a retracement, and the subsequent continuation move. This is a good confirmator for my Main trading window. Posted by Hello

Wednesday, June 02, 2004

My First Real-funds Trading Day

I got 2 tics out of the market today. 2 trades @ 1 tic per trade. I know it's a little conservative, but I just want to get used to the feel of trading with real money. Just getting my feet wet. Once I get used to it, I will be trading the full extent of my system, taking entries and exits as my system dictates.

My goal: To Trade Well.

That's it. Just to follow the entries and exit rules of my system as faithfully and automatically as possible.

June 01, 2004

I have been paper trading the ZB futures (Electronic 30-year T-Bond Futures contract) for the last 1.5 years, and this week I finally switched to real-funds trading.

This is also my first attempt at blogging.

This journal is the easiest way to log my trades, review them visually, help improve my trading, eliminate mistakes, and overall track my progress as a trader. My intent is to learn more about myself as a trader and as a person.

As I trade, I keep in mind the three P's of trading: Persistence, Process, Psychology.

Welcome everyone!