Another post by one of our successful graduate master trader:
No one likes being that person who shows up first to the party, but in day trading it pays to be on time!
Today, I was that guy who showed up fashionably late and it cost me. It’s easy to say I would have done this and I would have done that, but I think by the time I got to the market, I conservatively would have already been up 2-3 points
What I did notice right away was that the market was respecting our areas, but not for long. It seemed if you missed the first chance to take a trade in a given direction, the second opportunity was failing. I noticed this and changed my plan accordingly.
I’m a guy that loves to try and suck every point out of the market, but today was more about taking small profits for me because the market was going back and forth between two areas.
We had a massive run to the upside starting at about 10 oclock, but it was going back into an area that we had respected all day. I glanced over at my naked chart and noticed this and decided I was going to take my winners and get out. This is what I saw.
I decided then and there that if the market kept testing the area and failed, I was going to look for an exit. I stuck to my guns and exited on a reversal bar after it continued to fail.
With the overall expectation still up and a wedge beginning to form, I continued to take trades for small profits to the upside. I was up 3.25 points and decided I was going to take a shot at a homerun and enter at the wedge.
I knew that if it popped to the upside and broke through this area, it was going to run to the 61% extension which was at 1648.