Monday, March 22, 2010

Stop Out OK

Planned to take NQ long after a breakout of the prior high. I did that and was stopped out. The internals were supporting the long as they were nicely bullish, but after the stop out I realized something. The prior legs were around 12, 5 minute bars long. I went long on a bar that was over the prior bar's high, but only after 6 bars. This leg was not done correcting. Since this was in a bullish environment for the day, the stop took a while and I was actually able to advance it as price advanced over prior bars.

So this loss was good. It was a valid entry and based on valid analysis and the market just wasn't ready to move at that point and this stop out proved it to me. With a little more insight, however, I think I could have passed on this one, but I would not place this trade in the 'mistake' category.

Summing the 2 sim trades for the day, the sim account is still up a bit.

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