8-3-10

This day started quite bearishly but showed a nice bounce around 7am. This can be a nice reversal setup.

First trade of the day: 7:38am

Entered a long contract on the NQ after a nice continuation confirmation bar.

Entry: 1886:50

Target: 100% replacement of morning down move to yesterday's close @ 1894.75.

Stop: 1882.75

Update: Trade closed.

Exit: 1889.75 at the 61.8% retracement. This was my mental stop once price pushed to the 78% level.

Result: up 13 ticks.

Daily analysis:

While the one trade I took today was profitable I am disappointed that I was shaken out of the trade. It turned out that the price moved to my original target quite nicely, with just two minor pullbacks. I should have moved the stop to break even and just let it go. Mistakes like this seem harmless considering the profitable outcome, however, over the long run missing 10 ticks on each winning trade can mean the difference between success and failure. I have found that often my targets are good- I just need to stick to my guns and ride through the turbulence that is expected with each trade.