Dummy day trading #32 10-Oct-2006: YM short trade closed

This 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.

[photopress:orig_YM_15_trade_closed_1.jpg,full,pp_image]

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
About Gav

A Father, Husband, Trader, and Blogger. A serious coffee addict. Started trading since 2005, trades Futures and FX.

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Comments

  1. hi, just saw your YM short trade…dont get me wrong, but the trend is not down on your timeframe…

  2. hi, just saw your YM short trade…dont get me wrong, but the trend is not down on your timeframe…

  3. 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.

  4. 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.

  5. 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

  6. 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

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