Thursday, December 17, 2009

Stops on almost all my trades

I've tried to add some tighter stop levels on my trades, and this is coming really sick, as the prices are being just breached, before coming back into range - I will definitely need to loosen my stops.

Today I took two shots at day trading the ASX -

Trade 216

I entered 5 ASX short on the intial upswing - expecting a full fade trade, based on initial weak opening, and the weak close overseas and month long range bound conditions.
One key concern was that TICK was remaining stubbornly high, and I entered the position too early - I thought the price would retrace fairly quickly but it obviously kept pushing higher.

I got stopped out on the trade @ 4698.5

Trade 217

I remained somewhat calm and knew the market should be played for a fade trade, so I waited for another signal, and when I saw the TICK turn negative, with 50MA and break below consolidation on the 1 minute I entered short 5 contracts 4688.5.
The market continued again higher and I again got stopped out for 4701.5.

The market breached the high point at 4707 for a maximum of 10 minutes before falling off a cliff to a day low of 4650 - easily hitting my target price.

The lesson of today's 2 scratch trades, is that the upswing was definitely retracing, but I probably needed to wait for sector weakness confirming at this stage, and the prices ALWAYS seem to overshoot to shake out the weak hands, with stop losses too tight to the resistence levels - I will need to find larger risk/reward setups to adjust to the larger risk I will need to add into the stop losses.

I also got stopped out of all my shorts except WPL and my current losing streak has made my overall losses now $1,073 from trades. I still have my 2 pair trades of ccl/gff and ATVI/tech100.

I suck a lot more than I would like right now, but I'm definitely making adjustments.