After Friday's afternoon profit taking by bears, Monday morning opened up immediately with more bearish activity. This morning presented several excellent momentum opportunities.
First trade for the morning was a short reversal trade at 6:35 at 811.00. This trade was exited at 808.50 for 2.5 points. Next trade was a long reversal trade at 7:10 at 805.70 for 1.2 points. Last trade was a short reversal trade at 808.50 for +0.1.
Well I will say that this morning's trades were entered flawless and I'm very pleased with the low amount of heat I took in these trades. However, I feel in a way that I traded Friday (which was a losing day for me) better because the exits were no where near what my rules dictate. The first trade short should not have been exited until my second entry at 805.70 which would have meant an additional 2.8 points. The second trade should not have been exited until the third trade entered at 808.50 which would have meant an additional 1.6 points. The last trade was also exited prematurely.
After several hard days of making little if any points, it is very difficult to follow the rules. However, today is a clear example of why the those rules must be followed - especially when it is hard to do so. You only get opportunities like today once or maybe twice a week so when it happens you need to make the most of it. Today's net should have been +4.2 points greater than it was.
Net for the morning: +3.8 points
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Monday, February 12, 2007
Posted by Lord Tedders at 1:22 PM