Monday, April 30, 2007

Don't Fight the TREND

As PRICE continues to churn its way higher, I have seen many traders trying to short the top. I am also guilty of that sometimes. But for me, when I take a counter-trend trade, I make sure that my stops are tight - and I mean tight. It is best to put in your stops. I would never recommend anyone leaving their positions wide open. Because with every higher step PRICE takes, it hurts your pocket/position more & more...STOPs - Never, never trade without them.

09:50pm The last PRIME Support on the TREND Chart is too closed for comfort. It is only at 1494.50 - The risk of a Leg 1 of Bull Break is there.
10:05pm SHORT 1499.00 / STOP 1500.00
10:08pm Preparing to get out of the trade if PRICE doesn't want to drop any further...
10:08pm's slightly better now. Moving STOP to 1499.25
10:12pm Out at 1498.75 / +0.25pts.
10:13pm The slowness in which PRICE is dropping is a little warning for SHORTs - TREND Chart is also trying to turn up.
10:15pm LONG 1499.50 / STOP 1498.50
10:16pm Moving STOP to 1499.00
10:17pm Still very much a counter-trend trade. Will take whatever profit the market gives.
10:19pm Out at 1501.75 / +2.25pts
10:33pm Placing a BUY STOP at 1501.75
10:35pm BUY STOP triggered at 1501.75 / STOP 1500.50
10:42pm Moving STOP to B.E.
10:49pm Stopped at B.E.
12:08am Time for me to hit the sack. G'nite all. 3 Trades. 2 Winners / 1 B.E.

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