Friday, January 16, 2009

Staying in the moment.

Same drill. Only the momo. First trade was GS. Had Three waves of downside on the 60min chart going into some congestion support from mid November to mid December. Also had the whole number support and the 10:20EST correction period. I got in at 69.70 only to be stopped out at 69.50. The flushing action ,that I've bee seeing recently, took me out of the trade before it eventually followed through really nicely. I then flicked over to POT. Very similar set up, except the three waves of downside on the 60min chart was hitting the lows of the mid December congestion (instead of the centre in GS) It too had the whole number support. I got in 65.30 (a bit late) with a larger stop to avoid any flushes. Took off 63% of my position at .81 before buying it back at 65.62 (with my stop now under the base at 65.48 as I noticed strong support at 65.50). Exited at 66.21 as I had to leave....I had planned on 66.25 anyhow as an equal move target. All my trendlines are left on the chart.

I'm being reminded of the need to stay, as Mark Douglas put it, in "the now moment". So many times, I've been affected by my previous trade(s)-both positively and negatively. Neither is a good thing! Furthermore, the profits you made/the money you lost in the previous trades shouldn't be taken into account when deciding what to do next (I needed to remind myself of this when I heard me saying, "if I add back on, and get stopped, I'm still gonna be down for the day!!")If you fall prey to this behaviour, you'll just end up fighting yourself into a loss. Very important to forget about what you want, need, expect etc as the market doesn't know or care because it is what it is regardless of what's going on in our worlds (read: "accounts" lol) while we are busy managing our trades based on our entries, the market is going about it's business. It's sooo important to manage one's Ego when trading....

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