Great day as no news at 10pm to mess me up Dow opened up 50 pts and I took the first pullback long for +10. Nice to close the week up 31pts. Hopefully will continue. March: +31 1st wk: +10, +1, +10, -10, +10, +10 = +31 February: +59 2nd wk: +10, +10, +11, +10 = +41 3rd wk: +6, +10, -7 = +9 4th wk: +10, +9, -10 = +9
Goodmorning all. Started off the week with a nice profitable trade. The moment I got filled I hit the reply button in my journal. Price hanged there for less than a min so any followers did have time if they were lucky enough to click in time. The market opened up and I initially was thinking long, but it stalled and my thoughts started to shift from long to short. I also watch the 5min chart and the third candle had a long upper wick and the highest volume. It looked to me that sellers were coming in. I got the confirmation when price dropped to the open point and so I decided to take the short on the first opportunity.
Just reading some of your trades and looks very interesting. Do you take trade just based on the price or/and any indicators posted with your charts also? Happy trading.
Its not a system/mechanical approach. While I do watch the indicators shown, I also watch the price action on the 5min, the news and reaction to it and all the important support/resistance levels. So it's not as if I look for an overbought or oversold and take the trade. I make a judgement of whether I think there is a valid trend in place and how strong it is and what the background music is indicating. Like today I initially thought long but as it was stalling and the 5min chart told me to not take a long. Overall basic stuff but trying to filter while trying to keep excitement and 'want to trade' down. I'm pretty excited that this approach has been working for me and perhaps if it continues to do so for another month I may move to 2 contracts.
With no news today (same as yty) and the tight range yty (most of the day the YM was within a 30 pt range) I entered the day cautious. I felt the market was a bit overextended and had a bit of a bearish view. The S&P is around 1% below the daily yearly high and I don't see what is going to push it higher. In any case, what I think doesn't matter to Mr. Market and my job is to react and profit from Mr. Market's moves, and not on whether Mr. Market is right or wrong. The YM rallied 30pts off the open and I took a long on a shallow pullback. However due to the above, I decided to be conservative and instead of targeting 10 pt profit which would require a new high (I entered long at 47 and the high was 55) I aimed to make a smaller profit of 6 pts only (achieved in 3 min). Looks like I was wrong as the market later made a new high, but I don't mind.