I am trying to trade much more selectivley and to me, this looked like a perfect opportunity and its really tilted me to lose almost 4% of my roll on it! The graph has 1 more days info than I had as I went in yesterday morning, so for the purposes of this post ignore the last candle. THOUGHTS: Extremely bearish candle reacting to the resistance and I see no reason why this should not short all the way back down to the 180 region. Entered early tuesday at 219.7 and had my stop loss at the trendline at 249. GENERAL QUESTION: set ups like this, is it a better trade to enter with a loose stop loss all the way back at the trend line to not get stopped out in minor pullbacks from the downslope, or to have it tight to entry? Tighter would stop losses like this example, but may miss out on many decent trends. What is the better long term play? Thanks for your views:
I don't know if you could have chosen a worse way to post that picture. It would take two hours to download it, and I think it installs spyware, I had two pop ups come up. Why don't you just upload? What ever service that is, I don't trust it. Well, I can't see what ticker you're on there, but a thirty point stop seems wide enough to me. If I were to critique then I would throw out a few points. One, are you keeping the direction of the overall market in your view? Two, what is your time frame on this trade? I'm a newbie trader with little experience but these things seem important to me now.
Again I can't see the chart, but it sounds to me like you shorted it maybe well it was in the middle of a channel. I would personally wait until price was right at, or kissing the trendline, that way you can still put your stop on the other side of the trendline, but risk far less as your stop doesn't need to be so wide.
Attempt 2 at posting picture; im sure this is what i did last time, just uploaded it onto imageshack so there shouldnt be spyware???: The time frame I would like to think I trade in would be 1-3 days, so short term without being intra day. And I very much agree with the point about getting it in at the top of the channel instead of the middle.