Monday, August 27, 2007

Trading Results for Monday, Aug 27/07

Much ado about nothing - lost 1.0pts.

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The theme today was to play the reversal since I had missed out on the gap down and subsequent 9pt drop.
However, the reversal was not smooth, and at many points, it seemed the reversal was about to stall out and drop back down to the LoD's.
In today's low volume trading, what I saw a lot of was how ES would just hover within a 1pt range until some buyer/seller came out of nowhere to push it into the next trading range. It was hard to gauge direction of the push until these buyers/sellers showed up, and by then I was either stopped out, or exited altogether.

I think in order to capture the general direction of the trend, wider stops should be employed. However, since I started off my first trade with a loss, I got a bit overly risk averse, and did not have the will power to give a couple of my trades enough time to work itself out.

Since I think we are going to see this low volume environment for the rest of the week, I will need to adjust my strategy accordingly.

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