What an exhausting day. Expected volumes and volatility to be lower due to partial US/CAD/JPY holiday.
Took two short setups in the morning on the DAX and got stopped on both as the DAX rallied nearly 200 points from its low just after 7am. Felt somewhat injured. Was hard to put on the 3rd trade (around 12.30). However that one started to work out slowly. It took two hours for me to end up making 10 points.
Finally, after Wall Street opened, the sellers overpowered the buyers. Again it took some guts to put on the 4th trade. But I did – I managed to hit T1 for half the trade and scratched the 2nd half, but then re-entered the position a few minutes later, and turned the final (5th position) into a 1R winner. See chart below. That’s quite a lot of DAX action. It was also tricky to put on some of these trades as the THT trading room was mostly going long. I applied the lesson that I learned from one of the DAX trades last week – in terms of managing the trade – I managed using the 5M chart to allow the thing to run if it wanted to.
Believe it or not, I did actually manage to put on a FX trade too – my short-list of trending instruments today comprised most indices (bearish), several Yen crosses (going for Yen strength) and several AUD crosses (looking for AUD weakness). A short trade setup on GBPJPY – and amazingly it started plummeting within minutes of me putting on the trade. That also turned into a 1R winner.
The final result for the day was a gain of 1.1R. Note I have increased the monetary value of R (one unit of risk) from £67.50 to £89 for this week. That felt like a very hard way to make £100 profit!
I noticed on the winning trades today, price never went more than 5-6 points against me (if that) – whereas the losing trades were never in profit – something to keep an eye on. If winning trades always went into profit very quickly then I could use tighter stops, and if the trades that go against me, then I could close them quickly because they will probably not turn around in any case, rather than letting them go to a 1R loss. Is it very common for winning trades to go into my favor pretty much from the point of entry?