Monday, March 1, 2010

Trade 235 + 236: asx daytrade

short 5 asx200 @ 4608

- market gapped up early - the key probability play was probably the gap close - which I missed
- as the tick continued to trend downward - I felt that there could be a possibility to the price falling to a new low; something which went against my instincts due to the context of overnight prices and the high probability of range bound day
- I played the price pattern anways

the market made another run upwards, and it was sitting right at the resistence point - assuming the range day, it should return to the middle of the range with a high probability.

The market did return to my target price, but it didn't stay there long enough as it quickly rebounded - the timing of the price move upwards was the key here - I should've realised the market was on an upward bias as soon as I saw this price movement w.r.t time. I circle the spot where it hit a low where I should've bailed at least one half of my 10 contracts.

Total loss on the trade $105.