Thursday, October 21, 2010


Last night's session looked identical to one of my trading sessions last week. Losing 2 pts in 2 trades in quick succession, I positioned myself to looked for the next trade to round off my night, and as well as to recoup the 2 pts lost. That next trade soon presented itself and again, I managed to lock in a net profit of 3.75pts.

But before that happened, I was faced with a dilemma, where I believe, many traders will feel what I felt. As the trade got to the level where I was able to cover my earlier loss of 2pts, the ES started to sputter and was somewhat lagging behind the YM. The YM had broken through the session's high, but the ES just didn't want to follow suit. As such, it started to hover around the level that covered my earlier loss. On one hand, I didn't want the situation to turn nasty and to lose my points but yet on the other hand, I knew that if the YM continued to push higher, the ES would simply follow suit.

And as expected, the YM did push higher and the ES eventually followed suit. That's where the additional +1.75pts of my trade were secured. This is where your " trading mind " gets tested. As PRICE tried to go higher, it was not that "smooth". I believe those who have traded the ES, have seen those moves (whether up, or down), where PRICE simply "powers" each level of support or resistance.

In essence, what turned out to be +3.75 for my last trade, could well have been more. I was simply weighed down by the fact that I was recovering my -2pts lost earlier, and then while trying to take a good profit, the sputtering PRICE movement got me worries. On one hand, I was glad that the trade turned out positive but on the other hand, I rue the fact that I had left some 3-5pts (I don't expect to sell at the exact turning point), on the table.

For the record, my entry price was 1167.50, where thereafter PRICE "powered" all the way up to 1180.00 (of course, I was already tucked in bed be then).

No comments: