May 4 2010 Overlay and Trades

I had 6 trades today and took all longs. Mostly reactionary bids looking for squeezes. I knew the trend was down but had no short setups.

I was not looking for shorts. I have had enough of the constant squeezes and will only take premium shorts at extreme prices until the overall trend changes.

I executed aggressively and was please with performance even though I lost. The 3rd long today was against my new extreme price policy and looks like I chased it. The premise of the entry was to buy after the price broke back above support with a washout and a higher low.

This trade worked the last 2 times I saw it and I executed the loser. That is how non aggressive trading punishes you. That is why I am through not being aggressive.

I was up slightly going into the last hour. My premise was for a short squeeze into the close and to buy the lower high retest. I bought it and the price started to grind. Then the price violently pushed down and I quickly widened my catastrophic 3 point stop just before it clipped me.

My risk was below the low of the day and I was not going to get faked out. The action quickly raced off the washout low an looked like it would run up to 1174.00. I could have taken profits here but the premise was for a stronger move up.

Then the price rolled over and thrust down again. I had to cover. It turned out to be a very ridiculous washout and the price immediately pushed back up for what would have been a 5 or 6 point winner.

I suppose with more experience in these type of trades I would have given it more room. The chance of the price continuing to sell after selling all day was extremely low.

Today was a loss but I did almost everything I could to hit my areas. I will continue to execute aggressively and pull out of the crappy grind I have created by trading too cautiously.