Wednesday, February 04, 2009

Shooting for Nickels


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First and only trade in S&P500 E-Mini (ES):

long@835.5, stop@834.5, closed@839

835.5 was the tag of VWAP and gap fill on the SPY. VWAP was trending up, price did not violate the previous swing low in the pre-market, and Price action did not look like it was going to violate VWAP at that point. Plus a few sectors were bullish (oil, Aggies), which encouraged me to jump into ES right there.
ES ran for another 6pts after pausing at around the 840-841.
That means again, I am exiting my position too soon. But I am ok with shooting for nickels and dimes, and forsaking the dollars, until I feel comfortable that i have built up enough of a wall (capital base to cushion against future inevitable trading losses).

And yeah, I've noticed that the Euro dropped over a penny overnight (see my previous post on my Euro shorts), so my current risk aversion leading to fear deserves the lower profits. I will work on the psychological part of my trading in the coming days.

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