Tuesday, September 29, 2009

Trade 101 & 102

short 3 ASX @ 4675, then shorted 3 ASX @ 4681.5

1/ stop 4684, target 18 points + 4660
2/ tick falling
3/ I had been waiting to short the index close to the downtrending trendline, which was also close to the pivot levels.
4/ candles were forming dojis.

Basically expecting a last minute selloff, which didn't happen, I made two mistakes

1/ Not closing the position before I went on break
2/ Putting a stop loss that was tight just before the market opens the spread by 5 points in aftermarket hours (the tights should be much looser in this situation, or I should be watching the position much more closely)

A sloppy trade that resulted in being stopped out at 4692 and a total loss of $82.50