Friday, August 24, 2007

Trading Results for Friday

lost 5pts today

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Trade2: short 1476.0, lost 2pts
Trade3: short 1477.75, lost 2pts

Yellow arrow highlights a trade that I was not able to spot in time. I was away from my desk, and it happened right around the time I got back to my desk.

Trade1 was a play of reversal in the mid-1470's as I had described yesterday. The setup was good, but because of the low volume, it took a real long time to play out. I lost patience, and sold too soon. Price dropped pretty much to my target soon after I had sold.

Trade2 was a play of the reversal at the 1478-1480 resistance area. The setup was not that great. Technically, my indicators gave me the signal (MACD turned -ve, TTM Trend changed colour, price dropped below MA's), but had I been alert enough, I would have known that 1473.50-1476 was actually a resistance turned support zone that ES had fought through in the previous hour. The lower risk play would have been to wait for price to break below 1473 before shorting. The reversal was met with a sudden surge of buyers from out of nowhere, and before I knew it I was stopped out.

Trade3 was an impulse trade (probably also still mad at losing the previous two trades), the setup was poor and I should not have taken it.

I think the biggest mistake of all today was not that I took the last two trades, but that I lost patience with my first trade. Trend was intact, and there was no reason to sell despite the brief price spike up to 1470. Had I been patient enough with the first trade, I probably wouldn't even have taken any more trades for the remainder of the day, since I had the one win under my belt, and would not have felt the urge to recover my loss, and would also have been in a better frame of mind.

I was disciplined for 90% of the session, it was the last 10% of the session that killed me.
I still haven't learned Dan Fitzpatrick's lesson. Now I have the whole weekend to ponder today's disappointing performance.

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