Trades for 07-24-07 Daily target reached fairly quickly based on last short so decided to call it a day. The long on the chart reached it's target but did not get the fill, moved the stop to break even and finally broke down. The rest did well, second short nothing spectacular, barely a positive trade. Last short definitely did it. Staying loyal to the morning > afternoon I'm taking off.
Good trades tend to work right from the start. However, volatility rules the market so some room must be given to your stop. If the trade looks like it needs a big stop, I would not take it, why would you ? Risk control is very important in trading and the market is always there so no need to rush in trades. I do not like trades that require bigger than 1:1 risk so for now, you could start with that. With commissions and all you really can't afford to go beyond that. As your precision increases you can take it to 1.2 target-1.5 and beyond. Now when there is hesitation around your target you can always adjust your stop up/down to break even and dare I say it, "hope" you get filled. At this point I'm using fixed targets based on price action and fluidity and not scaling out, more on this later. Hope it helps.
Looks like a trending afternoon, wish I saw it coming. Oh well tomorrow the market also opens, no harm done. <couldnt stay out, shorting pop ups like crazy>
What an afternoon, after I saw the avalanche coming there was no doubt in my mind, and prob in yours, that the trend was nowhere but down. I managed to take a few but by the time I returned to trading it was almost over. The sad part is that it would had been a tremendous show for the journal. Nothing but lower lows and lower highs that could had been shorted to hell on every pop up. However, there will be a day it happens again, hopefully soon and I will be all over its ass. In fact, that's where my system excels at. Have a nice night.
Little late night reading. Advantage of scalping with the trend. Not only do you get more opportunities but well, the chart speaks for itself and it has annotations. If you suffer from over-trading, this chart is for you Trend is your friend !
Thanks for the nice charts and good analyses. Here is a similar way of looking at countertrend supports-but it is absolutely true, why fight the trend-it is just nice to know you could. We all could be heros sometimes - you don't need special powers - Hiro Nakamura
You got to love the way they run this up and down, but take the scalp trade when you can. The ADX was peaking and other volume indicators showing buying in this trade, no way of knowing how far a run up (it was easily another 20 points, but it was still countertrend. Sorry to clutter up your neat journal.
T, Ya I see what you mean by ADX. Haven't studied it yet, need to see if the signal is > 50% then I can consider it. Yep, loving the morning so far, many many trades