Sunday, February 7, 2010

Trade analysis error, led to entry error, led to stop loss, only to be saved by slow market. - Trade EOD Feb. 2, 2010

The NQ market had a low volatile uptrend all day. I didn't trade the even swings midday but I took one at 2:30pm, but what I failed to realize was that the swing I took was really a dip after an exhaustion move.

End of day stop out loss. At (I.) was my original stop loss point. Seeing that it wasn’t going so well, I advanced my stop to just under the current 2m bar (II.) because that’s all I was then willing to give it since it wasn’t acting as I had planned. I didn’t kill it since there was still some potential and I decided to accept the reduced risk. This stop advance was very good since price dropped and I saved a bit. (should have killed it, no reason to waste capital.)

The real issue was that on a 5m chart showing entire day, this move up at 3:10pm was the final exhausting push, the end of the move, so it was a very poor choice to enter on the other side of it with any expectation of a continuation at the dip. No amount of support from NYSE TICK, or TRIN bullishness could help it out here. NYSE TICK actually pulled back after looking like it would continue at my entry as TICK put in a higher low.

Luckily for me the market was easy and forgiving at the end because I was caught long in a mistaken analysis and entry. Do any traders show their trades? Do any traders on line show their failures or stop outs?

Today is Feb. 9, I have a lot of catching up to do.... - NQTraderJay

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