Welcome back to Ethiopia! I spent roughly a day in Kigali, Rwanda exploring what I consider the Germany of Africa. Ethiopia Airlines has a habit of having flights in the WEEEE (did I spell that right?) hours of the morning. My flight left at 2am and I arrived at my home (Taitu Hotel) in Addis Ababa at around 7am only to find out that I couldn’t check in because someone else was in my room. What kind of country is this? I spent the entire morning cleaning out my email inbox which resembled a plate of food after a 16 year old ravaged it. I miss those days, now plates of food just ravage my waistline but I digress.
After my 5 hours of beauty sleep, I made my way over to my Day Trading Office on the comfy couch at the lobby of the Jupiter Hotel. I was literally FORCED into doing this recap since my day trading buddy and I made a bet this
morning afternoon. The bet was as follows:
If I made the most points he would buy a flight immediately to Ethiopia
- If one he made the most points I would have to do this recap immediately after I finished trading and pay for the place we are getting for New Years in Rio De Janeiro, Brazil
He made 25 points and I made 23.75 points… you believe this guy? What a show off. The day started with an interesting double machiato that you see to the right. Lets get started:
Click on any of the charts to maximize them
I really was going to try and cheat and start in the premarket because we only said that we would stop trading at 11.30am CST, we didn’t agree on a time when we would start. I unfortunately have the habit of eating breakfast. The day started with a strong run to the downside and I was able to get a great entry on the first pullback to the midband. Being that the FYL (funny yellow line) was at one of our target areas I decided to exit at the first area.
What else did you expect me to call the yellow line?
I honestly could have made much more on this trade because we did have the expectaction that the market was going to continue down with strength but the Ethiopian Tibs I ate for breakfast were clouding my stomache’s judgement if you know what I mean. I was going to see if we could get a runner for T2 but as all good things in the world, the trend endeded. I didn’t like how the strength of the market was already starting to weaken since roughly 8.40 so I took my point and looked for the next opportunity.
After such a massive run down I didn’t take the long where you see the X labelled. We really want to see more confirmation back in the opposite direction after such a strong run down.
After we received the confirmation at 9.00am CST I took a long only to be immediately stopped out. So far I we were even on the best as my friend held T1 longer than I did but broke even on the T2. I immediately looked for a short after the pop down at 9.11am CST and cxlled my order just as fast. With that kind of pop to the upside I didn’t want to risk it only because I didn’t want to lose the bet! Market made another strong move down and a weaker retrace, I pulled the trigger and held for 3 points. Could have made another point on that but no need to get greedy.
Market flies back to the upside (who is NOT loving this volatility) and I really wanted to pull the trigger where you see the box. This is one of those instinct trades that I talk about, with the support area holding and the nice run it would have worked out nicely. T5 works out well which is a picture perfect trade with a perfect setup and momentum.
You see another box at around 10.05am which is another trade that I wanted to take. If you take a look at the 2nd chart above you will see my expectation for the market which is the reason why I wanted to take this trade. Just like every other trader out there I have to control my emotions and try and stick my plan. After seeing how the market has been moving the entire morning I decide to stick with 3 pt targets. With an average stop loss of 1 pt in my trading I could have a 33% win ratio and still end up on top.
Those are the kind of odds that I want in my trading
T6 was exceptional, as was T7. Both are picture perfect trades, notice where I placed the stop for T6 in case T7 didn’t work out. Both orders were filled at 3 points and this trend to the downside is what made the day. T8 was another winner for 3 points when we arrived at T9 there was a different mentality. Take a look at the support at 1213, this is what
stopped slowed down the the market from the huge downtrend. If the market is going to break this area she is going to run like Oprah at a cheese cake, love you Oprah! I honestly could have held T6, T7, and T8 all the way to 1213 but who is being greedy?
T9 worked out for a full 5 points (my max target) and the final trade of the day, T10, worked out for 2 points. An overall great day for a Friday. I post my friend’s chart below.
- Total of 10 trades
- 9 winners
- 1 loser
- 90% win ratio
- 23.75 points