Thursday, February 05, 2009

Don't Be a Hero

Tried to trade the S&P500 EMini (ES).... or maybe I was just farting around .....

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Took 1 trade of the S&P500 EMini Futures (ES):
Shorted @821, initial stop@823.

It was a nice and classical Box Play Pattern that developed, and the bias was to the downside as evidenced by declining VWAP, and the struggle to fill the gap down.
When price fell down to 817, my greed led me to decide against following the rules of the Box Play Pattern. In the past few sessions, I mentioned that I always tended to take profits at the end of the buying/selling wave. This time, greed drove me to go against my natural tendencies. I decided to wait around for a second wave of selling. It never came. Lost 4pts of potential profit. That hurt. Luckily I had the sense to move my stops to breakeven to minimize the pain.

UPDATE: Never underestimate the power of the 7am reversal !!!

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