After over a decade hiatus, it’s time to power up the blog again.
After a huge down day in the markets on Thursday, the question is whether or not we would get a bounce on Friday. More often than not with such a large range day, there is a high probability of an inside day. The open looked promising with a gap up but within 15 mins the gap filled and momentum accelerated to the downside. Looked for a reversal at R1 daily pivot (pink solid line) which was within the Fibonacci Zone (shaded bar) with stochastic oversold on both the 1 and 3 min charts. Also there is psychological support at 3400. Long 2@3401.50. Exited 1@ 3409.50 and the remaining contract at 3413.25 when price hit the 21 EMA with a overbought stochastic on the 30 second chart (bottom image). In hindsight, the better trade would have been to look for a short once price reversed hard after the gap open. For more detailed trade information, check out the Stats page.
Hi Small Fry. Based on your stats page, looks like you netted $979 in about 3 minutes. How much time researching/preparing for this trade? What is your trading philosophy?
Howdy Trader Joe,
With respect to the amount of research for this trade, it was minimal. Once price was heading down to potential support, I was looking to buy assuming it meets my trade setup criteria. I use to spend endless hours flipping thru charts and scanning looking for trades the night before only to see potential trades never coming close to triggering. Wasted time and effort. Now I just go with the flow. I track the 4 major futures indices (ES, NQ, YM, RTY) and there is at least one actionable trade during the first hour.
My trading philosophy simply is: Just trade baby! Just trade what you see on the chart. Don’t over analyse. Manage your risk with the utmost discipline and profits will follow assuming you have a strategy with a positive expectancy. The biggest enemy for any discretionary trader is oneself. Once you let emotions cloud your judgement that is when big losses inevitably appear. Trade logically and prosper or alternatively, what would Spock do? Simple but not easy.
Trader Joe, do you trade futures?