Tuesday Day Trading: EMD SR Trade

Although, this trade did not work out for full profit today. I do like this kind of set up at times. If you will note, there were two Spike Reversals shown, the first one was the low was lower than the the 2nd Spike Reversal, which had a higher low.

This is a trade pattern that I will take the trade at times on. This trade was specifically taken on my trading plan. It was closed out Breakeven plus 3 tics today. I wanted momentum to carry this trade up in a hurry this morning and this did not happen. This showed me that the market was heavy, and most likely wanted to go down more.

In any case, I was able to take a couple tics away from this trade, and more importantly it fell into my trading plan. After my bad ES trade, the most important thing you as a trader can do, is to look at why you took the trade, then not repeat the same mistake.

With this being said, the most important thing you can do as a trader is to walk away until you get your discipline back. Do not take a REVENGE TRADE to pretend that you will get back to even. If the trade is not in your trading plan, then do not make the mistake and trade it.

Now, mistakes do happen. The first step is to recognize you are in a mistake, then immediately take care of it as soon as you know that you are in. Hopeful thinking for the most part in trading rarely works out.

Ok, I am off my soap box now. On a side note, Steelers training camp was a blast with my boys, and I look forward to trading with discipline and control once again tomorrow and the rest of my trading days, to the best of my ability.

DO not beat yourself up, dust yourself off, and move on. The most important thing you can do, once you know what you did wrong, obviously is not to repeat that mistake again, but after that is taken care of, then get back on the horse and trade again. Do not let yourself become fearful of the market, allow yourself to have respect for the market, but let go of the FEAR.

I am truly done with my post now, and look forward to Wednesday and Thursday to see what the market has to offer.

Good Trades,

David AKA Tiger