I did 2 trades and got a point and a half in the futures this evening for $75, one long and one short, a nice way to start the week. I took a good risk at the right time and it worked out. The setup is now based on 2,10 and 30 minute setups. I also look at the 2 hour setup but not as often.
The main lesson on Friday was how important it is to note how much movement there is. While volatility itself is measured its not intraday. Friday there just wasn't much movement, which mean that 2 minute trading didn't work well.
I'm also really starting to notice the interplay between the different time frames and how the action of the higher time frame can guide action in the lower time frame, especially when the slope of the stochastic in the higher frame is steep. The lower time frame will look like it is making a transition and trigger a buy or sell signal and then suddenly reverse. Looking at the higher time frame reveals that it is on a steep slope, as if it were 'pushing' down on the lower time frame. Gaming this is key, because there are many times that a transition on the MACD fails. This can be very mysterious, but makes more sense when you watch the higher time frame.
One mental thing I'm working really hard on is the discipline of not getting ahead of where I am. I've realized that the key is simple: gratitude. I am grateful for the progress that I've made. I'm grateful that I'm getting real insight as to the (very short term) behavior of the market in action and I am grateful that I can take advantage of this in a way that lets me make money.
I'm making real progress. If this is like everything else I've ever done then its something that I'll get better at by just doing it more and more. What an amazing concept!
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