Theodore, Saskatchewan | jpartner - 11/2/2012 14:02
Just curious, when you were thinking of taking that trade, what was your target and stop? Just trying to see through your eyes a bit
Thanks
I take it you mean the second trade after the 1570 top
I did not use market structure and so I was still trading with a target to move up and finally make a HH above 1570.
On the chart I was watching movement on the quartile (I know you do not use it) and allowed the possibility that we were seeing a reversal from the quartile to retest the lml and then move up.
So the trade really came down minimizing risk to allow a proper risk/reward scenario. First I had removed part of the position at 1560 (in hindsight should have taken all), and would re enter that part. My entry was at 1545 and I used a 1541 stop below the lower line. This was balanced by the entry at 1533 from earlier. You mentioned allowing a risk of 1530 and with that I agree that a buy at 1545 is not a trade in my mind.
Summary on the trade, I gained on half 1533 - 1560, had a half at 1533 - 1541 and lost 1545 - 1541 on a long shot that we were reversing.
In hindsight the 1541 stop worked because we ended at 1527
The long at 1545 was the bad choice, I guess I needed to learn for myself by getting kicked around and now I know to respect the market "structure"! When 1570 did not break yesterday I could have taken everything off at 1560 and sat back once again.
Trade and learn
BTW Head and shoulders - shampoo took a while for my brain to connect the dots!
Edited by maydel 11/2/2012 17:09
|
beans again (jpartner)
