May 242012

Today I was positive in Globex and then had a terrible RTH session and gave it back.  Today was an example of a very choppy market with no follow through.  I thought a big move down was unlikely and that we’d balance, but the move down did happen.  And then when I came back for the last 90 minutes I was anticipating a move back up to 1316 and tried a couple longs there but the market was too choppy and my stop was trailed too close and I missed it.  Had I not trailed it so close I could have had an extra 6 pts and would have finished positive for the day and even had a good day.  Trailing my stops does help make losers smaller but it lowers the win rate (due to stop outs) and missing a few big wins would probably make up for the slightly larger losses.  So I need to think about this some more.  It’s not the first time that’s happened.  At the same time, the market really wasn’t following through so it was hard to be patient.

Overall a crappy day for me but the damage was minimal at -2.75 pts.  Lately we’ve had great volatility with 16 pt days and I’ve done well.  Today was a reminder that sometimes the market doesn’t do that (morning range before the move down was just 9 pts which for a long time was our daily average).  When the market is not trending one has to adapt.

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