Son of If You Can Draw a Straight Line . . .
- Thread starter dbphoenix
- Start date
- Status
Pretty sure it's the 50% rejection I mentioned that was similar to yesterday. I was writing my post and making my picture, and didn't see that DB already pointed it out until after I submitted it.
The long probably wasn't so bad, but shorting right on potential support at 84 before we saw how things played out was probably not the best idea. I will often realize that I short right above potential support or go long right before resistance is clearly broken. I look at my charts afterwards and wonder what I was thinking.
I've started to ask myself what the cost of waiting for additional information is, and if it's worth it to pay that price, and it has been helping me with those situations somewhat.
For example, if a steep DL breaks, and its 5 points to the 50% mark, I won't want to pay that much to see if price rebounds there. However, if there is a RET on a tiny SL but there is a chance that a potential support zone is sitting only 1.5 points away, I will wait and see what happens because the price is worth it to me in that case.
Don't know if that is useful to you at all, but just figured I would put it out there.
Thanks, I guess that If I had taken the long at the open I would have not taken that short, but as I was out and my long was taken out I thougth that perhaps the LOLR was now down. A clear mistake in hindsight.
Now, regarding taking trades against R or S my limited experience has told me that it is not such a bad idea, as the R or S is preliminary and therefore nothing can happen there making me lose the opportunity of a good entry.
Now, the final policy definition about that is not ready on my side as that will depend on exit strategy, and that is not ready.
Today´s trades.
Things to improve. Learn to take those rejection entries.
I feel I am better equipped to face the chop, but I cannot lower my guard as I easily lose focus.
At the open today I was totally lost, my subconcious was yelling LOLR is up, but somehow I managed to get reasons to short, even with the background of an uptrend in the 60 min.
Things to improve. Learn to take those rejection entries.
I feel I am better equipped to face the chop, but I cannot lower my guard as I easily lose focus.
At the open today I was totally lost, my subconcious was yelling LOLR is up, but somehow I managed to get reasons to short, even with the background of an uptrend in the 60 min.
That's a good call, actually. It seems that my tendency to find ways to avoid trades is flaring up again.
Like you've said, it's hard to nail down a specific policy for these things. I've seen improvement after staying away from things like taking shorts right before the bottom of a decent-sized range only to have them bounce off support again, or even if yesterday instead of exiting right at the 50% breach, I waited instead to see how traders reacted to it.
However, as my psychological management of a trading session continues to improve, you're definitely right that more opportunities can be taken with the confidence that the trader can react accordingly to all circumstances without being distracted or adversely affected by them.
- Status