Had one of the type of days I hate to trade; opens up 20+ points already exhausted so longs are "chasing" and it is so strong that jumping in front of the moving train for a "reversal" is trading suicide. So the best thing I can do is first, tell myself "Do not chase, do not chase, do not chase..." Sit on my hands and wait for that one dainty pullback an hour or two into the day and hope like hell it doesn't reverse the second I hit the bid. In this case it worked out and waiting for the low time frame pullback in a larger time frame up move where the lowest risk entries are possible. Trump is making "BTFD" a way of life and the trades are more frequent than ever as evidenced by one of the recent posts "Buying it high and Selling it Higher" ... Misspoke a smidge and talked about 2886, sorry I meant to say 2386. Don't know what I'm saying sometimes until it's played back. Where'd that come from? Hell, I don't know...
Anyway, bagged out of the move WAY too early as usual and as followers know one of my biggest areas for improvement is to stretch the winners more. Gotta work on that! The moral of the story for today is one of keeping things in context. Get in the groove of the different time frames and be patient for your setup. Big trends are made of pulsations on the way up and on the way back down. Find the pulsations on the way down in a smaller time frame and you'll likely find a "downtrend", yes I said downtrend, in a smaller time frame. When that trend starts to end, this will likely be the pullback on the higher time frame. That's the sweet spot! A mentor once gave me a great bit of advice when I found myself over trading because I could talk myself into nearly anything looking like some type of trade setup. He said "wait for the trade to jump out and grab you. Until it does, let it go." That was more profound than I gave it credit for at the time. If I had to rationalize the trade in detail making a case for it, it probably wasn't strong and should be passed on. If I became overwhelmed with a possible entry and was looking for a reason this "wasn't" a setup, there were most likely ample reasons to hit the entry button. The single entry today was like that, in a sea of uptrend trend lines and new highs by the minute, a meek little low time frame support pops up and says "Hi There!" First sign of support after 1 hour and 10 minutes, just get on it and sit on it...
Hope this is useful to you, and if so I always appreciate the share! Got those dandy buttons down the side for your convenience but don't feel limited by those, go nuts...
Emini Trading Blog
Want to know when there's a new post?
EminiEdge doesn't spam
"Trader Joe" trades the Emini S&P exclusively and is the main influence behind EminEdge.com.
Older Archives - Log In
Follow Emini Edge Trading