Dummy day trading #32 10-Oct-2006: YM short trade closed
October 10, 2006 – 11:25 pmThis is a trade that did not work out as planned. Shorted YM, with 1-R loss. This is a small loss. Looking at the chart, maybe I should look for even narrower bar for entry. Anyway, exited the trade as planned since the setup failed to work.
Q&A
- Is the trend up or down? Would you be looking to get long or short this futures contract? Trend is down. Looking at short
- Where would you get long/short this futures contract ? short below 3rd bar low which is a inside bar below Fib extension (regular session)
- Where would you put the initial protective stop? Abot 3rd bar low
- When would you stop trading for the day? After position is established/2pm NY time
- Where would you exit the position?Target Fib extension 138.2% and 161.8% or stop loss triggered
From the desk of Tradergav.com
[...] Dummy day trading #32 10-Oct-2006: YM short trade closed [...]
hi, just saw your YM short trade…dont get me wrong, but the trend is not down on your timeframe…
Hi Peter, thanks for the comment. The reason I went short was because of the lower highs, and the moving averages(5 MA is trading below 20 MA). Maybe I am wrong in this case. Market was still strong.
i see…most people confuse “…market is trending down” with what is an already established downtrend on any given timeframe…as far as i recall, the chairman puts emhasize on going long only on the back of an established uptrend