12-17-2009
Total trades: 10 RT
winner: 8
wash: 2
net P/L: 4.5 point
I broke one of my trading rules for I didn't trade single contract for the entire day.
At 3:10, I added second contract after channel breakout and throwback test failure. The reasons were, 1. I had made some points so I thought I could affort the loss of two contracts if my judgement was wrong, 2. channel breakout with throwback retest failure is one of the setups I want to trade.
EURO/USD broke a important support on its daily chart. Future started moving lower since last night. SP500 cash index gapped down at open below daily pivot range 1110.15 to 1112.08. It implies today most likely would be a bearish biased.
ESH10 moved nicely between a down channel since yesterday 2:15pm and over the night.
A quick long trade as ESH10 bounced of 1093.5 with vol spike right before 12:00pm ET. Had to leave for a meeting from 9-10am pacific time.
Continued trading at 1pm ET. At 12:30 there was selling climax with vol spike. Long for retracement and exit at 23.6% FIB retracement level.
Shorted at 50% retrace ~1094.5 and covered at 23.6% retrace level again.
An up retracement channel formed and price retraced all the way back between 61.8 to 78%. The vol spike at 2:35 indicated trend reverse as price hit 1096.5 up channel line. Played short since then since it looked like a bear flag and the down trend should resume shortly.
Price touched bottom of retrace channel at 2:45 and moved back to 61.8% level and reversed again.
Went short when price broke 1103.5 at 3:10, my stoploss for this trade was above 61.8% retrace level 1095.5 (the reason I chose 2 pts stoploss was because I've made some points for the day and I could risk a little more for potential big move). then a throwback to retest the bottom channel line (coincidently also 61.8% FIB resistanec here second time) at 3:10. Here I initiated second conract to short at 1094.5. 1092.5, the 23.6% retrace, was my original profit target. I closed all my positions at 1093 since teh price stayed there a little longer than I would like. After I exit, the price eventually touched the lower channel line at 1091.5 trying to retest intra day low. What I could have done was to exit with one conract and set stoploss at breakeven for the second one. That would give an extra one point profit.
I keep reminding myself since I am still unexperienced, the first priority for me is to control loss, the second is to maximize profit. This definitely takes time and effort to accomplish.
Total trades: 10 RT
winner: 8
wash: 2
net P/L: 4.5 point
I broke one of my trading rules for I didn't trade single contract for the entire day.
At 3:10, I added second contract after channel breakout and throwback test failure. The reasons were, 1. I had made some points so I thought I could affort the loss of two contracts if my judgement was wrong, 2. channel breakout with throwback retest failure is one of the setups I want to trade.
EURO/USD broke a important support on its daily chart. Future started moving lower since last night. SP500 cash index gapped down at open below daily pivot range 1110.15 to 1112.08. It implies today most likely would be a bearish biased.
ESH10 moved nicely between a down channel since yesterday 2:15pm and over the night.
A quick long trade as ESH10 bounced of 1093.5 with vol spike right before 12:00pm ET. Had to leave for a meeting from 9-10am pacific time.
Continued trading at 1pm ET. At 12:30 there was selling climax with vol spike. Long for retracement and exit at 23.6% FIB retracement level.
Shorted at 50% retrace ~1094.5 and covered at 23.6% retrace level again.
An up retracement channel formed and price retraced all the way back between 61.8 to 78%. The vol spike at 2:35 indicated trend reverse as price hit 1096.5 up channel line. Played short since then since it looked like a bear flag and the down trend should resume shortly.
Price touched bottom of retrace channel at 2:45 and moved back to 61.8% level and reversed again.
Went short when price broke 1103.5 at 3:10, my stoploss for this trade was above 61.8% retrace level 1095.5 (the reason I chose 2 pts stoploss was because I've made some points for the day and I could risk a little more for potential big move). then a throwback to retest the bottom channel line (coincidently also 61.8% FIB resistanec here second time) at 3:10. Here I initiated second conract to short at 1094.5. 1092.5, the 23.6% retrace, was my original profit target. I closed all my positions at 1093 since teh price stayed there a little longer than I would like. After I exit, the price eventually touched the lower channel line at 1091.5 trying to retest intra day low. What I could have done was to exit with one conract and set stoploss at breakeven for the second one. That would give an extra one point profit.
I keep reminding myself since I am still unexperienced, the first priority for me is to control loss, the second is to maximize profit. This definitely takes time and effort to accomplish.