Rally Stall? First Red Day. My Plan for Thursday Nov 16.
Also. Why I lost twice in a row and am happy about it...
So price action last couple of days has been tightening up. That can often lead to losses when one enters for a trend trade.
On Tuesday after CPI numbers came out I got short twice. I had to given the gap amount and I need to follow my gap up reversal setups. Lost twice on the starters.
Third one gave a double.
During lunch hour I given the price action I made a plan for what if support holds as we rally in afternoon. That let me plan taking contracts for 0.50 and selling for 5.50 for 10x! The key point of this share is that I stuck with process. If I didn’t and let the first two trades create self doubt I would have missed the winning trades.
So track everything. Track you trade seutps, their win rates, etc and have faith in yourself. Most people lose in trading not because the system or indicator is bad but because their execution, risk management, and CONSISTENT application of process doesn’t exist.
When you enter a trade enter with the exepection fo trading to win vs trading to not lose.
Yesterday the price action tightened up further and we got a red day. Usually within 2-3 day another big move will come. the question is, will it be profit taking or a break out.
The one thing that was positive was that volume came bcak in even though we chopped most of the day and the scanner still found some great trades.
Pay attention to the idea behind the alerts. What and why are they entering and what is the opportunity. I saw one trade setup where the alert was at $2, it came down to 0.5 and then hit $10
My plan for Thurs Nov 16
Yesterday the action turned a little toppy so I will be looking for failed break outs to get short. I’d love to see 450 push and fail during first hour and then break lows to takes us back into 445 on SPY before pushing higher toward 460.
That’s it for now. stay tuned for comments in Twitter or in Edge. I plan to wait for fist hour or two to complete before taking a trade today.
Remember to have a way to trade for consolidation action and other ways to trade for trend.