I’ve been super busy lately and haven’t had time to update the blog. Things should calm down once school is out.
Last week I finished -8 which is a bit discouraging. I seem to have a good month or two and then a few bad weeks. In order to minimize the bad weeks I cut size from 2 to 1, and for this week coming up I will only be trading a pullback setup, namely a pullback to a broken level. In studying my trades, this is the most profitable for me. The downside is there are less of these. I have a lot of other things going on so I can set audio alerts and only come to my PC when there is a potential setup. So that’s my plan.
Friday was very strange. After a 24 pt gap up I just couldn’t bring myself to buy anything and I didn’t want to fade the strong gap either. So I just watched. A few other traders I know bought around 46 and made money. I need to be more aggressive with pullbacks, they work far more often then one may think. (And conversely, fades work far less often than one may think).
Friday proved once again that the market can do anything and we shouldn’t let perceived notions of value interfere with trading. If the market opens up 24 pts, that’s what it’s worth at that time and any increase or decrease should be measured from the open instead of the previous day’s close. Personally, the skeptic in me thinks we’ll fill that 24 pt gap, but it might not be done right away. Could be tonight in Globex, this week, next week, next month, etc. So I’ll just put my blinders on and trade pullbacks and see how that works for me.