Worst day so far. Trend was up strong all day, so looked to buy a fib pullback. Went long on a fib pullback even though my indicator did not turn up. I averaged into the trade assuming that market was stop hunting, and i did not want to be stopped out only to see market go back up. Stop was set below support levels and did get hit. I have a Prof indicator on my charts, it turned up, but my best indicator which I will not discuss did not turn up. I went long again and again averaged into the trade. Of course I got stopped out again. Finally, last trade I decided to either go long a break of resistance or go long around ML. ML got filled with 2 contracts. 1st target got hit, then got stopped out of second contract at BE. Total loss for the day $ 1,400.00. Reasons for loss, did not wait for second confirmation of my major indicator to get long. Assumed on such a strong day, we would not have a trend reversal which is what happened. Was not able to recognize that trend reversed, which now is easy to see in hindsight as candles broke below MA's and never once went back above. Loss was also larger since all my losing trades I averaged into the trades. Really bad trading today.
Goal for next trading day. No averaging into losing trades. Also, I want to be able to not go beyond a $ 400 loss for the day. So I need to be able to stop at my loss limit. I went beyond my loss limit right away today due to averaging into the losing trades which made my loss greater plus it caused my stops to be much wider. Psychological issue for the day was that I did not want to have a losing day. So that is why on 2nd trade I also averaged into trade thinking I could get a big win to offset the 1st loss as bulls would want to run market back up to top of range.
Much better trading today. Instead of getting in on a limit, I got long on a buy stop with 2 contracts. 1st contract hit target and second got stopped out at BE. 1 trade, 1 win $ 100. Like many times with a win, I don't feel like trading anymore and of course if I lose I feel like trading more. So what I think I will try to do for now is just 1 trade per session to prevent over trading like yesterday.
I was able to get long one more trade. Price hit floor trader's S1, and bounced off. I wanted to get long a test of this area since it was not broken. I had a limit order to go long and while price got close, it did not get filled. However, I also set a price alert around a resistance area that if broken I would think of buying the break. The alert went off, I checked my indicator which was green, and also the strength of the previous candle, and decided to go long 2 contracts. 1st hit target and 2nd got me out at BE. 2 wins for the day, $ 200.00 Best trading so far. I now need to see if I can maintain this strategy on a day I take a losing day.
ES was falling past support but CL was near a support but not at its low for the day. Although we will not see a one to one relationship between these 2 futures, strong moves in one can impact the other. I went for a short scalp on CL. After getting in trade ran against me a little, so was looking at good places to put an OCO. After setting my stop and targets, I was able to make $ 120.00 for the trade. Now just watching CL, I see it went to 82.00 a little lower than my target, then it bounced back a little bit above support but did not reach previous resistance level before turning back down and making a new LL for the day.
Looking back on ES, I see 2 easy trades that I could have made short in hindsight. I got up later than usual today due to injury of my feet jogging.
Currently short 1 contract ES on golden cross with indicator as secondary confirmation. 1st plan was to average in just 1 more contract nearer resistance since i got in this trade late. Trade started to go my direction so instead moved stop down and left this as a 1 contract trade. This was going to be a 2 contract trade, so this is not just me averaging in for no reason. However, since I got in late, I don't want to risk more contracts with a wider stop at the get go.
Trade hit target. It did go against me a little before hitting target, but although I moved stop down I gave it enough room not be stopped out. 1 win for the day. + $ 100. I was planning to stop trading for the day if this was a losing trade. I may stop anyways. I almost want a losing trade, just to test my resolve not to over trade or revenge trade. The good news with these wins is that they are validating some of my setups.