Want to see me commit one of my Trading Log 7 Deadly Sins in real time? Yup – took profits after just 2 points – when there was another 4 points in the move. Ouch.
Well, not really. My motto "Get out, don't get greedy" works both ways. I don't feel extreme pain (losses) but I don't feel extreme euphoria (profits) either. Would have been nice to get a re-entry signal but the move just accelerated to the down side.
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Emini Day Trading: Short Setup – 24 Mar 2010 (9:45)
Here's a 500 tick chart of the trade with annotated setup sequence below.
Emini Day Trading: Short Setup Sequence
- Exhaustion buying signal on Better Momentum (large cyan dot)
- New High made by Amateurs (yellow paint bar) and therefore suspect
- Re-testing of Highs and Professionals taking profits (blue paint bar)
- Bearish divergence showing less Buying pressure (white dot)
- Re-testing of Highs and Professionals getting Short (blue paint bar)
- Push up by Amateurs (yellow paint bar) and break of Low is signal to Short
- Series of Exhaustion selling signals on Better Momentum (large cyan dots)
- Re-test of Lows by Amateurs (yellow paint bars) who get wrong-footed
- "End of Trend" warning signal coinciding with cycle turn on 4,500 tick chart
Been getting some really nice emails from followers lately. Seems the videos go over well. I hope you enjoy this one and good luck with your Emini day trading.