Article The Power of Now

T2W Bot

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Debra looked at the candle on the daily chart. It was yesterday’s candle and it was red just like several before it; and it looked good. You see, it represented a pull-back from a high several days ago on the YM E-mini. The high was the latest in several higher highs and higher lows that stretched back a few months representing a strong upward trend. What looked attractive to her was the fact that the price action had bounced off a 10-period and a 15-period exponential moving average several times, and as well the highs pulled back off significant resistance levels several times. On this day, the price action’s pull-back was hitting a significant support level, which also happened to be coinciding with an upward cross-over of the two moving averages at the open. For her, this was an important set-up that she had been waiting for.
Debra was an experienced trader, and she appreciated that having a trade plan was essential; she also had a plan for this trade as well…that...
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timsk

Legendary member
7,059 1,861
Replace Debra with timsk and the YM with U.S. stock ERTS and you have an almost word perfect description of how I managed to blow 70% of my account on one trade back in 2004. Since that fateful day, I've often been tempted to move my stop for the same reason as 'Debra', but I always remember this experience (how could I forget it!) and leave it where it is. Now, I have a rule to only ever move a stop in the direction of the trade. Like a recovering alcoholic, I've wobbled a few times over the years, but it gets easier to stick to as time goes by.
Tim.
 

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