Hi all,
A comfortable start to the week, and a lesson in consistency:
I want you to compare this chart with that of Friday last in the above post #460. They are remarkably similar: a failed nudge upwards at the open and then falling into a sustained downtrend. The charts are essentially the same and so is my trading, a direct repeat of Friday's effort. We wait for the market to crack and begin obviously falling and then await a first minor consolidation. We can't expect too much of a rigorous rebound if we are considering conditions to be a firm downtrend, so a minor consolidation will have to do for the setup. We duly get a small amount of gyrations in the 48-64 area around 8.20am, and once the market tests and fails above 60 a couple of times I am happy to try a short at 61. The stop is nicely above the rebound high and the target is more easily reachable at the bottom of the consolidation. It all works as Friday and we quickly get our +1R plus a bounus extra point at 48, again not wanting to test the range bottom. Again this was unduly cautious as the market went down another 60pts to the 90 level, leaving a potential 5R extra on the table, but that's just me and braver traders could and probably should have creamed off rather more than I did.
Please note the value of consistency in your trading here. The market shaped up much the same so I traded much the same, and always in disciplined accordance with my basic methodology and risk control requirements. If you don't stay consistent you will soon find yourself shooting away randomly on successive whims rather than following your method diligently, and you are unlikely to do well over the long haul acting like that. Discipline, consistency and solid risk control are at the very heart of profitable trading.
A comfortable start to the week, and a lesson in consistency:
I want you to compare this chart with that of Friday last in the above post #460. They are remarkably similar: a failed nudge upwards at the open and then falling into a sustained downtrend. The charts are essentially the same and so is my trading, a direct repeat of Friday's effort. We wait for the market to crack and begin obviously falling and then await a first minor consolidation. We can't expect too much of a rigorous rebound if we are considering conditions to be a firm downtrend, so a minor consolidation will have to do for the setup. We duly get a small amount of gyrations in the 48-64 area around 8.20am, and once the market tests and fails above 60 a couple of times I am happy to try a short at 61. The stop is nicely above the rebound high and the target is more easily reachable at the bottom of the consolidation. It all works as Friday and we quickly get our +1R plus a bounus extra point at 48, again not wanting to test the range bottom. Again this was unduly cautious as the market went down another 60pts to the 90 level, leaving a potential 5R extra on the table, but that's just me and braver traders could and probably should have creamed off rather more than I did.
Please note the value of consistency in your trading here. The market shaped up much the same so I traded much the same, and always in disciplined accordance with my basic methodology and risk control requirements. If you don't stay consistent you will soon find yourself shooting away randomly on successive whims rather than following your method diligently, and you are unlikely to do well over the long haul acting like that. Discipline, consistency and solid risk control are at the very heart of profitable trading.
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