Current trades update and more potential setups

In this recent post I mentioned a couple of potential set ups I was watching as well as including the charts highlighting some recently taken trades. Here is an update, plus a few more setups which I've added to my watchlist.

Some recent entries and current watchlist charts

I have a number of specific rules which govern the type of price set ups I look for. To help me identify these I have developed and refined scans over a number of years.

My original scan codes only identified price breakouts at the point they occurred. This meant I had to be in front of the screen and see these pop up in real time so that I could get in close to the breakout level. I've now been able to re-code these so I can identify these set ups prior to breakout.

This enables me to enter stop orders on a Good Til Cancelled basis on the market open.

Sticking with the process

My historical win rate is about 30%, so with the majority of my trades generating losses, I have learnt to accept losing money along the way.

To me, what is far more important than the monetary outcome of any one trade is whether I am sticking to my process and my execution:

On defining a trend, interpreting volatility and when to go fishing

Jesse Livermore aboard the Anita Venetian

"Your definition of trend is the smoothing method you use. The methods you use to define trend are entirely up to you, so you get to define trend any way you wish; everyone may have a different idea of "the" trend." - Ed Seykota.

Developing your level of competence - which step are you on?

In trading, as in any walk of life, it takes plenty of experience to evolve from being unconsciously incompetent to unconsciously competent in what you are doing.

If there is nothing to do, then do nothing

The last couple of weeks have been frustrating in that, while I have been able to identify plenty of interesting looking setups, they have either:

• continued to see price consolidate and are yet to trigger; 
• had earnings releases or trading updates; or 
• price has fallen away rendering the set up being no longer of interest. 

This has coincided with an uptick in volatility in the major market averages and a pullback from the recent highs.