Wednesday, October 13, 2010

Discipline & Patience in Trading

Discipline has always been a bugbear in my trading but I'm glad that with my recent return to the futures market, I have been able to keep a tight rein on it. Yesterday was no exception as I waited patiently for a trade to set-up.

However, I chose to look for shorts, even when PRICE had clearly signalled a bottom when the ES hit a low of 1152.00, twenty minutes after the opening bell. I guess I was thrown off by the longer term chart, which had turned down.

Somehow, at the back of my mind, when my initial short only garnered +1.25pts in my favour (which I did not close, and was hoping for a cascade), I knew that PRICE was heading towards 1165.00, to challenge it as PRICE chose to hold steady, and inch itself back up again. True enough, when I turned on my PC this morning, PRICE exceeded that mark, and actually hit a high of 1169.00.

I must remind myself, not to second guess PRICE's intentions but simply to go with the TREND. For the record, my STOPs were pretty tight last night. I took 2 trades, and the losses owere -0.75pts & -0.50pts respectively.

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