Thursday, August 13, 2009

Trade 52 - Another Daytrade Speedhump

In and out of ASX with a 5.5 point loss, no dramas, still trying to catch the dismal results. Today's mistake was not correctly identifying whether the the index would be range or trend bound.

3 contracts @ 4401

1/ 3 push trade
2/ Tick stalling
3/ MACD diverging (3 tops)
4/ Price at top range of resistance - day's high
5/ risk 5 points - target at least 10 points - trailing stop loss likely to be used at 4380 - 5 point trailing stop.

Stopped out
1/ I put a stop at 4406 and it seemed a little tight - might need a 10 point buffer.
2/ The factors for the short trade still remain, but for now I am stopped out, and I will refine my stop loss points for the next foray into the shorts.
3/ I probably could time my trades better, by applying some candlestick confirmation before entering.
4/ Biggest mistake was not identifying the day as a trending day (thought it would be range bound) - obviously the positive fed report last night plays a part here - once agian my brain isn't connecting the dots ATM.
5/ Better trade would be to buy the 50dma and ride the trend on the long side.
6/ 5.5 point loss for -$16.5