Wednesday, May 30, 2007

Consolidating Between PRIMEs, on the TREND Chart

Last night's trading action was pretty good, except that I had too many pre-conceived ideas in my head, when it came to taking the trades - LONG or SHORT TRADE & PROFIT TARGET.
Looking back, I could have easily taken 5-6pts if I had placed shorter profit targets ahead of my earlier trades. This has always been an issue that I grappled with personally, and have discussed it with, a good trader friend of mine. I found that having a smaller pre-set profit target placed too earlier in a trade would sometimes cause me more anguish than joy. In the past, I would quickly take profit, around 1 - 1 1/2pts, only to see the trade go further in my favour by at least 2 points ! Currently, I trade with Strategy Runner, putting in immediately a 1pt STOP Loss & a 3pt Profit target. Last night's action was not overly TRENDing, thus the pullbacks were rather "deep", than "shallow". Because of this, there was much anxiety in one of the trades I took. I will have to relook this current method of taking profit, so as to improve my overall mindset when trading.

As mentioned earlier, PRICE is very much consolidating between 2 PRIMEs (PRIME Support at 1514.25 & PRIME Resistance at 1524.50) on the TREND Chart and we would need a clear break of either direction (Support or Resistance) before taking the next move. But with the SWING Chart (PRICE has made a Higher PRIME Low at 1507.75 - UNCONFIRMED LOW, at the moment) pointing up at the moment, a possibility is that PRICE is heading back up.

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