Friday, August 14, 2009
Trades for 08/14/2009
I'm titling this post "How To Lose Money Lesson One". To start lets talk about the indicators I was so excited about last night. For one, The charts worked extremely well, even though we spent the majority of the day in chop. Unfortunately, my execution was sub par. Here is what happened.
This morning we were consolidating at the recent highs. Aggressive traders could have taken a short at 1012.50 when all the indicators were pointing lower. conservative traders would have waited for the chop to subside, or to break below recent support. I marked the entry at 1008.75 and an exit when all indicators went blue at 996. That's 12 points! great trade right? wrong! I missed the whole move. Don't even bother to ask why, there is no excuse for missing that move. none.
Moving on. The SMI formed a nice little divergence at quarter to 12 that I marked with the white lines. You could have taken a long there with stops below the swing lows (992.25). I took this signal and 45 minutes later decided to give up on the the trade closing out at break even. Technically there was no reason to exit, other than I wanted to limit risk during the lunch hour. The proper way to manage this trade would have been to keep moving my stop up to the most recent level of support. Failure on my part once again. Epic fail I might add, because this ran for 10 points.
Remember yesterday when I said if I made $1100 I would be buying all of Pittsburgh drinks? Ya, well that ain't happening. My actual trades are plotted on the chart below. You can see I got chopped to death all afternoon. I took a loss of 19 ticks or $237.50. Putting me basically at break even for the week. Lower on commissions. It is not a good feeling to spend 40 hours staring at these charts all week and have nothing to show for it. That really doesn't even count the endless hours I spend on forums, this blog, tweaking setups, and all the other research I do on a daily basis.
I'm not going to let myself get discouraged though because there is still a lot money out there to be made, and I plan on making it. I'll obviously be working on this all weekend, along with refreshing my programming skills so I can get some type of strategy set up that I can back test. I'll work on the rules tonight and post them at some point tomorrow. Thanks for reading guys enjoy your weekend, especially If you made money!