I trade the Hang Seng 1-2 times week for the full session (on the simulator). This post will be my diary where my progress can be tracked, in the public eye.
I hope others can find some insight in my posts, but mostly that other traders may have some criticism or advice.
At the moment PnL is not my real focus, but learning the patterns and experimenting with 'working the market' (or what I can using a sim). So this will explain why I do so many trades in a day - to experiment and test new ideas.
19/01/2008: (261 trades in total)
go to bed at 6am, wake up 12:30AM before the opening.
Fire up NT - HHI (5min), KOSPI(5min), SGX Nikkei, and Hang Seng charts - 1min & 5 min.
I wish I could remember what I was thinking early in the session, but I don't like to write things down while I'm trading - it distracts me from remaining 100% focused on the action.
Until 1:16PM I was being chopped in a massive way. I trade up to 4 contracts and I was down about $18,000HKD. I remember the action on the DOM started to feel like a led weight wanting to pull price down at some point after 1:08PMish local time. I was in out, in out and being chopped out before this but from here till about 5:46PM local time I made back that $18,000HKD and more besides. But then I proceeded to lose it all in that uptrend I didn't think would continue. When I get out of tune with the market I get totally pissed off and angry @ the market and you will see this in my PnL when I have massive losses because I refuse to close the position when they go against me. This is not like EOD where you can just set a hard-stop - so its very easy to be unsure when to get out.
I'm finding that there are no patterns I can articulate - there are things I see over and over again but they haven't helped me make any money. That 24,26,27 lots in the book and sometimes hitting @ market and a few other little things. This is what I would actually look our for when I first began.
Mostly I will look at the depth and just have some instinct or another tell me it wants to go down or up. One example is we have a two bar consolidation after a downtrend (2minutes consolidation) and one would expect things to continue downward but then the DOM starts acting weirdly and the chart moves up only a little (not enough for a signal) but the DOM gains momentum and price suddenly shoots upward - I'm usually able to reverse my short to catch a large chunk of such moves.
I also have found that I can get in tune with the market in a ridiculous way at some period and not at others. I'll post today's PnL chart to illustrate. (See attachment). Then I will give it all back in periods I'm not in tune with and totally misread (seeing patterns which aren't there maybe).
I plan on going live by July using the MHI. I'm unable to do that at the moment.