Tuesday, September 18, 2007

Update on my Natty Gas swing trade


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well, I woke up today to find out that I got stopped out on my Natural Gas futures position. I left my stop at 6.54, and that is where I got stopped out. Blecchhh.

I'm looking at the chart of NGV7, and it looks like the drop overnight went from 6.7 down to 6.2, which makes that drop more profitable than the long trade. But there was no way of knowing ahead of time that 6.7 would be a resistance level, because it just wasn't in the charts - not on the daily, not on the hourly.
So, while I'm not happy with the points that I left on the table, I have to accept the fact that I made the right decision to leave my stop @6.54.
Overall, if I had the opportunity to make this trade again, I would do so, so that means that I did make the right trading decisions. It was the market that decided to give me what it gave me, it is what it is.

Well, as I type this, Natty gas has jumped from 6.35 up to 6.6 in a span of 5 minutes. Looks like some crude oil shorts got real scared, and the short covering in crude is dragging Natty gas up with it. I will take another look at Natty gas tonight.

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