A suggestion about reentering a trade, even if the previous one was a loss.
No matter what a trader uses to identify a breakout type trade (i consider all types of trades as breakouts, be they a continuation, a range-channel parameter breakthrough, a pivot reversal, a supp/resist test bust through or failure,etc, etc).
Lets set the stage: We spot a signal that is in our top 5 GOLD signals, 5 is enough. Ok, we visualize the profit target and where we will admit defeat, recognizing a loser is a snap because either the trade follows through on the breakout or not, a child can see that. I take the first breakout because i like to think everyone else is looking at what i am looking at. Now looking at something and actually pulling the trigger is something we never know what THEY will do.
Ok, say i take the trade and the followthrough does not have enough powder to produce a winner and actually goes against me enough to STOP me out. That kills that particular trade, FUGEDDABOUTIT, it is history. Ok, price starts to sneak back to the breakout point...........i am going to play it again, i assume my technical signal is going to try again. This is not revenge trading, it is smart trading, i can at any moment be correct on the technicals, thats easy. But, i can never be confident on the timing because aside from my technical reading of the mkt, i am clueless. No indicator is faster than price itself, i have no faith in indicators to foretell what price will do, if anything many probably use signals to setup the weak hands to smack their trades. That debate always opens up a seperate can of worms. I just look at a loser trade as the right technicals but timing is flawed. Timing can never be mastered, NEVER.
Today was just such a day, round number of 14 handles up and 14 down. For a change the down move later in the day was a good read. 1100.00 was tested and retested, on the 3rd try at 1400est it showed a small key reverseal, unlike the other 2 attempts to punch through R1 at 1100.00. Think.....3rd time through or 3rd time (attempt) through fails......... PP was 1095 and S1 was at 1087.00. They took it down to S1, we are in a BEAR down swing. But i hate to have a bias.
A trading plan is a PLAN, there are things that work and some that do not. Forget, keeping losers small and work the winners, those are givins, the real trick is to play your spots. Timing is the buggaboo, try again if price says to do so.
Sometimes it is worth your while to ask the same gal for a dance after she played hard to get.
PS: on that key reversal at 1400 est, price never got back above the KEYS opening tick at 1099.50 Clues, clues, work the clues.
PSS: Nod,What is this you simed ES and results as expected? Comeon, you are better than that. Work on a plan.
