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My thoughts and strategy as in trying to become a scalp trader!
GAP-UP is closed... and we are continuing higher for now, which is going down the drain for me!
I agree fully! It was a conscious decision, because I don't have an exit strategy when it goes bad! Like I have said earlier in my posts when something goes bad doesn't mean you aren't right! Yes, it is suppose to be a scalp trade! Easy in and a quick one out! But I also look on bigger time frames when it goes South, which that trade is! And I still believe if I maintain the strategy on a bigger time frame things should go back in my favour again.
The problem is, that I need either more money or put in lower contracts maybe, because then even if a trade goes South, I can still continue to trade my strategy and maintain balance!
'A trade going bad!' is like telling me 'I have no time' and I have time on my hands to trade, yet I need money to buy back the time. It's complicated, hope you can think alongside with me here... But I don't like taking losses when I am right eventually and in the meantime am losing a week to get back where I was the week before equals zero progress.
Then why are you consciously making bad trading decisions if you agree? You have to define what your trade is. The criteria for your scalps from before is now the same as this long term trade you are stuck in. That doesn't make any sense!
I hope this is not coming across as mean spirited because I do not intend it to. But this is a lame trade. Go back to the drawing board and figure out an exit strategy, you shouldn't even be trading if you don't have one.
Basically I made the decision to participate in the journal challenge to confront people with my strategy and try to see the flaws in it. Like I said before things are always going great until they go wrong! This is basically my third trade of the year going bad! But previous 2 bad trades hit a margin call!
My exit strategy would be a stop loss of 50 points. But there are exceptions, because of the mental attraction to the 12.000 price level and trying to hit new record levels. Today's gap-up is closed and there was no follow through of it wanting it to go lower, unfortunately.
I like a dynamic approach, things may go bad for sure, but that doesn't mean you have maintain a fixed stop loss!
You can see how things develop over time and monitor different time frames, but the strategy should be consistent.
I just feel awful missing the trade in the morning and having to cope with a losing trade and having no idea about how,what,when, etc.
This is still an important gap-up being open! And this gap is already on a really high price level, I expect this gap to be filled over time!
I took this trade just now with a 50 cents contract only...
I put in some new funds this afternoon due to the fact I don't want a margin call any more and I don't want to miss obvious trades... funds I can miss, but will most certainly also be missed!
At least a hit... even though it's only 1/3 the size of the trade going wrong. There is still magic in my fingers!
A good trade missed and a good trade taken!
My definition of a good trade is less worth due to the fact I am stuck in a position like I mentioned a dozen times before.
Which is annoying two trades after had gone so well, should have been triple the money!
Well today was my lucky day both targets were hit! ... lowest point of today was 11928 one of my targets of this BAD trade was 11929!... This means, I can trade with normal sizes again! I will be watching out for scenario's like this one... to not get stuck again! No loss made from the start of this blog, and only 1 trade made with deviation of my strategy, and to be honest, I am having some help/discussion about hopefully giving me some insight in sorting this out!
While this trade ultimately corrected itself, I will be honest with you, that this also was my third this year total, pre-journal period included where this happened and the first two ones caused for a margin call. Hence why I was utterly mad about this happening a third time! Then again... the madder I became, the more likely things got it would go my way again!
Daily review but I had to leave the desk during the noon session. I was only able to take the morning trade as perviously posted.
Sorry, for the missing Y-axis and I didn't include the story I wrote above in this picture...
Well, that MAJOR gap I was talking about just got filled! That's one of the reasons why we drop today and lucky for me yesterday! I am still a bit in shock that I am out of bad trade and made money during the process!
I learned a lesson here... I will put in small contract sizes and will put these contracts on different spots IF or WHETHER they occur or not! But that way... I can always get a better average entry position, for IF things go bad...
I took a trade just now, 50 cents and my first entry!
Entry is the green line at 11765.45, target is the red line at 11775.45, so far we hit 11771.35
Target achieved with relative ease and had a second chance to get in again! But didn't... it takes a mental shift I notice.
Also my profits are 1/3 lower than my usual profits!Then again I have less risk and more opportunity to make things right.
Counter argument is... I will need a way longer time to get 'some' where... And I am here to buy back some years...
Today we have a GAP-UP from 11795 to 11843, lowest point thus far has been 11812.
Today i saw an opportunity at the opening 09:00 AM CET. But according to my rule set I skip the first hour of trading on Mondays due to any news that came out in the weekend that needs taking into account by the market.
No trades taken so far.
I will probably have to wait till the USA opens for some volatility.
