Monday, 16 November 2009

Congratulations and Jubilations

That was the title for Britain's Elvis of the 1960's - Cliff Richards' and it's what I think you deserve Kiki, for the morning trade: Exit all Longs @ 1100.50 and going short at that price. It was the best trade you have made since going live. Without the structure we trade in, it would be a hard trade to make.

The long at 1097.50 was a bread and butter trade for us and so was the exit part of the trade at 1100.50. However, going short at the resistance of Friday's extreme took your trading to the next level. Linking the exit and the reversal shows focus, understanding and sticking to your trading plan. We do not often do reversal trades. We may exit at one bar and then put on an opposite trade at the next. However, our plan calls for reversals in situations similar to today's where the order flow changed quickly right at the resistance where we were going to exit 1/3 of our position anyway.

What makes your trade even greater was that I wasn't trading today as I hurt my back.  I re-pulled an old skiing injury on Sunday and could barely move until after lunch.

This trade shows how crucial a good and fairly detailed trading plan really is. The problem for most new traders is that you don't know what you don't know.  Kiki says that my post here was right on the money. Price pulled back from resistance enough to give her a nice profit and then went sideways with our trading plan keeping Kiki out of trouble.

After lunch, London time, the buyer arrived and she rode the order flow until shortly before the Fed Chairman's speech when she finished the day nicely green.

Well done Kiki! Congratulations and jubilations.

Click to enlarge

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