The way I trade
Hey guys and girls, I know it has been a while but I am back with my view of the market. The hockey season has just begun and it has been very hectic, hence my vanishing act.
Today was a fantastic day to show why it’s very important to not always rely on the indicators. I traded for an hour and made 2.75 points. While that is nothing to write home about, I was happy to be able to be back in tune with the market!
The best lesson of the day came shortly after the market opened. We had strong momentum to the downside int the pre market. As you can see my first trade failed and with the strong immediate momentum to the upside, I tried to go long. After I was no-filled the fun part came.
I watched the market like a hawk to see if we would get a follow through to the upside. When it failed, I knew the market was headed back in the same direction as the overall momentum, DOWN!
It’s important to note that indicators are usually lagging so when I saw that failure to the upside, I was expecting the market to continue down. I DID NOT care what the indicators were telling me. A quick glance at the naked chart and 935 showed this…
Now if that is not screaming SHORT, I don’t know what is. It’s important to note that the FYL at 935 was angled sharply upward suggesting strength to the upside.
However, indicators tend to lag behind, so we should never rely solely on the indicators. Instead, we should constantly analyze the market because it repeats the same patterns over and over and over again!
I got unlucky on that trade and was high-ticked, but I know I made the right call. If I could have it over I would have done the exact same thing!
Stay profitable friends and Go Caps! (Washington Capitals for you non hockey fans 🙂