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Historical Simulator Plug-in

Day Seven

Video Transcript

Okay, here we are, we're back ready to go at it again. This is the next day, we're looking for each day to get our one tic. We've been agonizing over this thing all day, I didn't sleep well last night, at all. I know I'm down almost $2,000.00 in the Futures market. I thought this was the thing that I was going to do for making some extra cash on the side. That's all it has done is cost me 2 grand. I started my account out with $25,000.00.

I have a little bit of money to play with in there you know, but I know that I'm not supposed to be using money that's used for anything else, this is supposed to be sheer recreational money for speculation purposes only, I know. But $25,000.00 is still a lot of money to me. If I lost it all, I wouldn't be sleeping in, you know down on the street curbside, or anything but nonetheless I hate to lose money, and $25,000.00 is what I opened my account with and now I'm down with $2,000.00 and I'm feeling kind of bad about myself. I had a bad day at work, I couldn't think of anything else but the $2,000.00 I lost in the Futures market today. I kept wanting to jump onto my computer and look up the daily prices and see if Corn was moving in my direction. You know, but I..I'm not too worried about it- I have myself a good broker, and she watches my account for me and makes sure orders are going to be filled for me when they need to be filled. She calls if something is going on, for me, so I'm alright.

But I'm anxious, and I'm at home now and I'm going to check on my account and look and see if everything is okay and straight for me.

I have my Corn contract up, I'm going to advance my chart one day. Step forward, nothing too exciting happening here. I guess I could realign a few trendlines or something but Corn is pretty boring for me right now.

Let's look at Feeder Cattle. This is one where I'm anxious to see something happen for me. Step my chart forward, whoa that thing is moving right up in there, creating this nice little right shoulder. I wish it would come back down, though and make me some money. But that's good too, that's making this more steady, more strong, more powerful, it's making me feel a little bit better. See that little retracement, look at that- it's made it's 50% retracement back from that point to that point back halfway. Now I should see that market turn around and come back again, because you know markets like to make retracement levels in 50% waves. So, I'm looking for this to turn around and come back again.

Let's go on to my Gold account. Oh, Gold, let's see..I'm in Gold, how am I doing in Gold? Sell 2 on a Stop, let's step that one forward..oh! Gold went in my favor, Gold went in my favor today. But I'm still losing $20.00, how come I'm still losing $20.00 even though Gold went in my favor? Well, it dropped in my favor, but then in came back up and closed above where I, above where I got in.

You know what? I'm doing a really stupid thing here. I hope nobody does what I just did. I traded without a Stop Loss Order. Look at that, my goodness sakes- I got into this market yesterday and I didn't set my Stop Loss Order to get me out in case that market came back against me. Oh, how stupid! That Turner guy forgot to warn me about that. Bad memory of mine. I need to have that be a Buy 1, what am I doing here? Buy 2 on a Stop. Alright, now I feel better. I have my Stop Loss Order in there. If that thing comes against me I'm risking, that's my risk of $1,000.00. If it comes against me, it gets out on Buy 2 Stop.

Okay, I want it to drop though and get me some little profit here with Buy 1 on a market if touched. Come on, make me some money. I'm down $1,279 overall today it looks like. Let's go through and see which charts are doing what for me.

I guess I came back a little bit. I was worse yesterday wasn't I? I was down $60.00 yesterday, today I'm only down $20.00, so I guess I made $40.00 today. So it's not making me feel much better against my $2,000.00 loss. I guess there's something in there, let's go look and see what my next chart says.

Lean Hogs, step that baby forward. Oh, that didn't get me anything. Except for maybe move that right shoulder over a little bit. Now I start questioning myself and thinking oh, this is going against me. It got me in on a break down, now it's coming up. Should I move my Stop Loss down, or should I leave it up there where it's at. Start double guessing and thinking about everything, I go out to the internet and I search, and look on my CD and see what it says about Stop Losses and I read- everybody tells me: Plan your trade and trade your plan. But look at this, my trade is going against me. Do I pull that in so I don't lose anymore money. What do I do? Well, I guess what I'll do is I'll do what everyone says, and I plan my trade, and I trade my plan. I knew I was risking $1,000.00 on this trade. If it goes against me, I'm going to lose $1,000.00 on this trade. Oh, I hate that feeling.

Okay, Live Cattle- goodness sakes, this thing just keeps going against me in the wrong direction. Maybe I should recalculate, maybe I should redo this thing. Maybe I should move everything in. Am I doing the right thing, here? Left shoulder is clear down here. High is up there, right shoulder is clear up there now is it going to break up, make a new high? Maybe I should put my order way up there and follow it closer. I don't know what's going on here, why shouldn't I be making money right now? Everything is going against me.

Oats- I hate Oats today.

Silver- step..oh, I'm hating Silver today, too.

Wheat- step, well, what is Wheat doing? Wheat is over here making a little tiny baby 123 formation.

Somebody told me about a 10, 20, 50 rule. Where I'm supposed to have 10 days in between the 2, and I'm supposed to have 10 between or 20 days between the 1 and the 3, and I'm supposed to have the 2 and the 3 is supposed to be a 50% retracement. That's why they call it the 10, 20, 50 rule. Now I want to tell you, that's not such a bad rule, but it's not such a great one either. Because the 10, 20, 50 rule says that you're supposed to have 10 days between the 1 and the 10. But you know what? Not all days travel in 10 day waves. So don't take that literally, it's just a guideline.

You know, if every single market trended in 10 day waves, then that would be a good rule. But they don't. Sometimes they trend in 15 day waves or 20 day waves, or 30 day waves. So you have to count your waves, before you start counting your 123 formations. This looks to me like a short 123 formation, it's not one I would want to trade right now, I don't think. It's too short. 2 days between the 2 and the, no, not for me!

Let's wait and watch this one a little bit longer. I guess there's nothing else I can do today. See you tomorrow!

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