Wednesday, September 5, 2012

End Of Winning Streak

Had to come sooner or later! What's most important is how I conduct myself- win, lose or draw- in the coming trades as this is where traders sometimes run into trouble.

As covered on the above charts, I basically waited for a confirmation of a lower time-frame setup on a weaker larger time-frame setup (see hourly for why I thought it was weak).

This time I was the one who got trapped as the following price action pivoted nicely off of the two ZoA before breaking above the important 560 area.

The trade was within my trade plan guidelines. The two subsequent entries that were not taken were too. But, for now, my trade frequency guards against this type of quick-fire trading. I'd rather miss those entries than take 2-3 losses in quick succession and ruin things going forwards.

Somewhat incidentally, I also had an order for a short on the books at 560.5 just before 2am. The fact that it reached 560 then fell away bothered me a bit and that's another reason why I need to refrain from high frequency trading at this time.

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