Tuesday, 27 October 2009

Monday, Monday

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As the song says, "Monday was so good to me". 4 trades with 3 winners and 1 loser.   Based on a 3 lot, profit of 1350 Euro (about $2,000) before commissions which were about 50 Euro. I was trading the Dow Euro 50 traded on the Eurex exchange in Germany.

Market opened and looked for balance. After an hour or so the orderflow started selling and I entered short against resistance from the MP. I covered 1/3 at yesterday's Point of Control (POC) and the balance @ 2882 as the sequence bottomed. Second trade came out of that sequence with a Long @ 2883 exiting @2889 as MP resistance held. Went Long again @ 2883 with the order flow but was stopped out for a loss of 4 ticks as there was no follow through. The next Long @ 2883 again as buy orderflow came in was a profitable trade. The trade of the day was the last one, Short @ 2888 which I rode down all the way to 2820 taking profits in my usual scales out. Most days have one good trade like this and its important to stay focused so you don't miss it.

My daughter had a tougher day. Late entries resulted in no profits for her until the last sequence, but she finished green on the day as the last sequence had a lot of juice in it, over 60 ticks.

Info for K. (my daughter): Being late on an entry is much worse than being early. Being late gives you a worse trade location which means that your stop loss will be bigger, you take more heat. Being early usually gives you a better trade location but you run the risk of being wrong. Trading order flow correctly should mean that you get instant gratification as you are front running the market.

1 comment:

  1. Hi,

    Do you also watch the tape and use it to refine your entries?