November 23 2009 Overlay, Trades, and Commetary

CLICK HERE FOR TODAY'S SHORT TRADE 5 HOURS EDITED TO 3 MINUTES IN HD VIDEO

I had a good read this morning. I was expecting a pull back but the market just took off.

There was a long entry at 9:35 AM EST. I had a good pattern confirmation and could just feel the price extending. Unfortunately, I hesitated for literally 2 seconds and price moved up to where I wanted to have my buy stop.

This puts me in a defensive position and causes further hesitation. The market was already extremely extended. It is very hard for me to buy an extended high but my read and gut feeling were both spot on.

The only thing to note is that I need to trade what I feel, trust my gut, and do not think much about my executions. This is the best possible trading plan.

Having said that, I have been hitting my setups with extreme accuracy and consistency. The mistakes have been limited in number and impact.

I made a good recovery after missing the long with hitting the short off the resistance area.

This is another example of the type of trade that I used to wait around for a clear setup on. Instead of waiting, I executed in the area where the market would fail if it were to fail. There is not much more to the setup than that.

The first short was a probing short and got stopped out. I did not intend on giving it any room. because the market was not rolling off the highs. This is often a sign that the price will extend. I wanted an immediate roll over or small loss.

The second short was a simple re-entry. It was a good risk reward bet with limited risk. There was not much of a pattern entry other than a micro breakout. Managing risk as tight as I have been has allowed me to simply insert orders where I feel the market will move.

I have given myself the freedom to take 2 or 3 shots at a move. It is my belief that my analysis is solid enough to make the probability of 3 tight entries failings very low. it will happen often enough but the edge will be greatly in my favor as long as I let the trades run to their targets consistently.