Today before the open I tweeted my plan:
Oddly enough, my plan worked well. Unfortunately I deviated from that plan and was very close to a losing day.
The first trade was a long on the pullback to the OS H. The buying looked very weak so I took a quick scale on half, and then it looked extremely weak (as in “I want to get short” weak) so I decided to exit the trade.
In hindsight the better thing to do would be to put my stop just below my entry and give it room. Unfortunately I didn’t want to end up with nothing so I got out. My fear of losing my profit got the best of me. In my defense it was really strange to see such weak buying. FT commented on the same thing. Please don’t ask why I thought it was weak (as obviously it wasn’t) as it was just a feeling from watching the volume and prints.
So idea 1 would have been a winner had I stuck to my plan.
Next idea was a short from the gap fill. I use the cash gap. I did take this trade but took it as a scalp since we had an open drive up. I was out as soon as I saw buyers, so I got a pt on this one. I also took it with 1/4 size since it was fading the open drive, something I rarely do.
So idea 2 was worth a 1 pt scalp.
Then things went wrong for me. The open drive and strength of the move up told me a retest of the low may not happen. So when ES pulled back to the VWAP & Midpoint, I got long. They didn’t hold. I took a 3.5 pt stop loss. As I showed in my stats, this is pretty rare for me and oddly enough it eventually came back to my entry. But I’m proud of myself for taking the loss as it could have just as easily taken out the low.
So this trade was against my original idea of retesting the Globex low. But that’s OK as I’m allowed to adapt my plan as I go (this is contrary to FT71 and some other traders but it works for me.. most of the time).
At this point I was down quite a bit and I almost quit for the day. But thinking it over I saw a good short setup as ES was once again coming up to the VWAP & Midpoint.
I got short anticipating that retest of the Globex low. I took over 3 pts of heat on that but I really needed a winner to make up for my earlier loss so I was being patient. Was this revenge trading? I don’t think so as it was in my plan and was a valid setup. The fact that I really wanted, even needed, it to work doesn’t make it revenge trading. I let the trade go for 2 hours while I picked up the kids and went to the store and it finally hit my target while I was having dinner.
So idea 3 would have worked (even though we didn’t test the Globex low, we did make a new low and I got over 7.5 pts BSO on that one).
All 3 ideas worked, but I fell short. I must admit there was extra pressure trading 4 contracts. I’m not used to that. I kept telling myself that it’s only 3.5 pts (and not $700) but it’s easier said than done.
For what it’s worth: Today was a very difficult day to read for me. I used to hate trend days. Now I hate days like this. There was not much continuation. Fortunately these types of days have been rare lately. If today ends up being a doji (as it is now 1 hour before close) the move outside of today’s range could be a good move.
So the “no big losing trades” streak has ended but the “no losing days” streak continues. Hopefully tomorrow will be less stressful.