Hi all,
A very short day for me today as the opening trade wins nicely. This is welcome because, as a lifelong Tottenham fan (and I am quite old now) I am feeling a little worse for wear after celebrations last night!
However, back to business. Today's action is another good example of trading with the trend after a failed retracement, this strategy being something I have previously suggested (see post #98) as a solid way to trade:
We see an established downtrend in place in pre-market trading which lurches down to a low at 12090 on the 8am opening before attempting a counter trend retracement rally to 12120. I wait for the retracement to roll over and take a short at 09 with the prevailing dominant flow. The stop at 19 is OK at the rally high though the 1:1 target at 99 is just below potential strong support at big figure 12100. However, the prior low is below this and the trend looks strong so I will take the trade but move the stop to breakeven should it approach the 00 level. The market immediately collapses and I take profits at 96 for +13 and a few extra bonus points.
I am happy with the profit and do not want either to take on a possible bounce at the 90 low or risk a sharp snap back after the quick dip below 00. Both are entirely possible and those who have been following this journal know by now that I am a cautious trader. As yesterday, however, more aggressive traders are rewarded by the market slumping all the way down to the 60 level, giving 50pts available on this trade.
After my woes on Tuesday (see post #94) patience and consistency have paid off with two nice winners presenting themselves on Wednesday and Thursday. Sadly, you can’t choose when your winners will come, the reality of trading is that you just have to keep going in a consistent, disciplined manner, accepting the losers along the way until the winners arrive.
Back tomorrow.
A very short day for me today as the opening trade wins nicely. This is welcome because, as a lifelong Tottenham fan (and I am quite old now) I am feeling a little worse for wear after celebrations last night!
However, back to business. Today's action is another good example of trading with the trend after a failed retracement, this strategy being something I have previously suggested (see post #98) as a solid way to trade:
We see an established downtrend in place in pre-market trading which lurches down to a low at 12090 on the 8am opening before attempting a counter trend retracement rally to 12120. I wait for the retracement to roll over and take a short at 09 with the prevailing dominant flow. The stop at 19 is OK at the rally high though the 1:1 target at 99 is just below potential strong support at big figure 12100. However, the prior low is below this and the trend looks strong so I will take the trade but move the stop to breakeven should it approach the 00 level. The market immediately collapses and I take profits at 96 for +13 and a few extra bonus points.
I am happy with the profit and do not want either to take on a possible bounce at the 90 low or risk a sharp snap back after the quick dip below 00. Both are entirely possible and those who have been following this journal know by now that I am a cautious trader. As yesterday, however, more aggressive traders are rewarded by the market slumping all the way down to the 60 level, giving 50pts available on this trade.
After my woes on Tuesday (see post #94) patience and consistency have paid off with two nice winners presenting themselves on Wednesday and Thursday. Sadly, you can’t choose when your winners will come, the reality of trading is that you just have to keep going in a consistent, disciplined manner, accepting the losers along the way until the winners arrive.
Back tomorrow.
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