David Knight -Journal

David Knight

Active member
Aug 20, 2017
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#62
Sometimes trading is like shooting fish in a barrel and sometimes it is like pulling teeth...

out at 2458 +5.5

Running +8
 

David Knight

Active member
Aug 20, 2017
401
99
38
#63
I don't want to hold overnight.

The reason is because I'm looking for some follow through on this weakness. The chart shows the technical reasoning.

There are other reasons which combine to form a trading idea-

After a relatively heavy down day, other indicies will often follow The US down. So an early low on Weds would be a more ideal 'buy the dip' opportunity than the one I was attempting today.

Time is often just as an important factor as price in identifying potentially good trades...
 

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David Knight

Active member
Aug 20, 2017
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#65
My stop is tight above the current high 2467.47.

Why so close to my entry? Don't we hear all the time that tight stops get taken out?

From post yesterday-

'Time is often just as an important factor as price in identifying potentially good trades...'

If I have correctly identified the high/low (Which is often made early) then-

The market is not likely to go there again SO..

If it takes out the high by the smallest amount, then I am wrong and I want to be out as soon as poss.

If the market continues lower, I want to hold all day if I can/ or at least to an identifiablr target . Today the target is near/through the gap.

Bottom line-

You want a tight stop if you have good reason for it

You do not want a tight stop because you were told by someone else that it's a good idea..


 
Likes: IceMan

David Knight

Active member
Aug 20, 2017
401
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#68
Today's trade looks like a case of making money even when you're wrong, which is a good trick.

And remember, it was a short trade, which I'm always nervous about, and with good reason when we review the chart.

I managed to grab only 4 pts out of an 8 pt pullback before the market reversed and took out the high by a shade over 1 pt (so far)

Plan Your Trade, Trade Your Plan

Had I stuck with my plan I would have made nothing.

If you follow logical sounding trading rules you'll run into problems and wonder what the hell you're doing wrong.

That's where your real work begins.

'Let Profits Run, Cut losses short'

Somebody needs to write a book...

'The problem with Trading rules'-
41 Shades of Grey every new trader should know about...

My Plan

The next problem is that the next 'logical' trade would be to go short the gap fill above, (if it fills) particularly since the gap below remains open.

But... shorting is not what I'm comfortable with. Otoh trading isn't about being comfortable...

Maybe we could say, it's about being comfortable with being uncomfortable. Well, when you put it like that, I'm here aren't I?

So, if you're relatively new and having a really hard time reading this market, let me say-

Still remains a tricky market.
 

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David Knight

Active member
Aug 20, 2017
401
99
38
#71
Not convinced the low is in today. Could be the calm before the storm, though not expecting a storm either.

If it does drop 2456-8 is the most obvious target

There's too little conviction in the price action to get into a trade right now.

Apologies for being a bit slow to post today- we had guests, but they're gone now.