Day trading report Jan 29, 2008: +$130

[][]Everyone is waiting for the FOMC meeting tomorrow, so not much is happening today. As such, the day is mostly inside a trading range. I should have taken the first SELL signal just before the open because it was the biggest move. I didn't take it because it was before the day session and I was worried of market manipulations.

However, upon looking at the past few days' of data, it seems that even pre-market signals seem reliable on ER2. I will consider entering a position outside of the day hours in the future.

Not much happened today. I sort of used Stochastic to try to trade today, but it wasn't very reliable. In addition, I observed the price movement and used mostly instinct and chart pattern to trade. It didn't turn out too well but I did develop a new strategy based on it and it seems to be good.

I realize that I need more strategies to capture more market movements. Having just 1 setup is very limiting. I was down for most of the day but made it back into the black after 3pm. The first hour or two and the last hour are really good on ER2 because there are more activities and more moves in those times.

I also looked at other markets today. The S&P Midcap 400 seems good too but it moves like the YM and ER2, so there's not much point in trading it with ER2. It just doesn't provide diversification to trade heavily correlated markets.

I also looked at some FX futures, but the ATR is too big. It would be good to trade it on a longer term once I have enough capital.

For now, I'll stick with ER2 and try to develop more strategies.


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