Quote from oraclewizard77:
I shorted 1094.50 with a small stop since it broke small support. Got stopped out, and reversed trade to long at 1095.50 and made 2 points of profit, but ends up only total around 1 point due to my 1st stop out.
Basically, we got a false breakout to get shorts trapped, and then the market moved higher.
Main problem with my short was that I had a signal to get in higher, and instead wanted more confirmation beyond secondary confirmation. When the support broke, I thought it was going to be like yesterday when market was going back to the lows, but basically, I should have just shorted when I got my primary setup which would have gotten me out at a profit, instead this was more like chasing the trade and getting in with all the normal traders who are usually wrong.
After getting stopped out, I got a setup for a long trade, but no secondary confirmations. I took the trade without secondary confirmation since I thought market does not wait to give them to me before moving.
Looking back on both trades, I see that I could have waited for my normal secondary confirmations and still made profit.
I would say the best part of today, is that I took 2 trades, and my winner ended up giving me more profit than my loser. Also, I am happy that I did not get chopped up.
I did not feel that we were in a chop day with the swings moving 5 - 7 points, so it was more of either a swing day or trend day, and a professional trader should be able to capture a portion of these swings if he or she picks the right direction. Also, since its a trend day, fighting against it like I used to do when I started trading would have been suicidal.
Before, I would have averaged into this short trade, by selling more contracts higher thinking that okay, I missed my good entry, the market is going to go back there, I can add a contract at that price, and then take both contracts off at my 1st entry. Well, we see what that would have gotten me, the market then busted right through resistance at 1097.50 and kept going higher which would have gotten me a $ 400 - $ 600 loss and made we want to revenge trade.
Now what I need to work on is being able to have a contract continue with the market higher once resistance is broken like butter. That is the next step and I am not at that level yet.
Also, I should have held the EUR/GBP short over night since it gave more profits instead of just taking 30 pips. My thought on this trade, was that it would be around same price or higher, and I could get back in rather than risking a full retrace to my primary entry, but Forex is not always like ES which shot lower and then reversed to make new highs.
I think yesterday, it was easier to analyze the market, it made LL and LH. Today, it seemed movements were random since we had no reports. However, my setups did work if I just followed them blindly and not over think the trades.
