(I really got to think of better headings for my blog posts!)
On several occasions, my trading mentor and coach Paul Wallace has talked to me about the idea of making a 2nd attempt on a trade in certain conditions. He explained that as long as the conditions for a setup are still valid, then it might be ok to enter the trade for a second time. He pointed out that, particularly with intra-day trading, it’s possible to be too early to the party, be stopped out and then see the trade take off in your intended direction (and that’s just tough luck). However if the conditions and set-up are the same there is no problem with re-entering the trade.
Well, today was a day when I was able to put some of this concept into action, and it worked out very nicely. I caught Cable on the breakout of a symmetrical triangle targetting a key support/resistance level below. Little did I know that the thing was going to move so massively – but hey, the winner (+1.7R) more than made up for the 1st attempt (-1R). This is what it looked like: Also did another two hours futures trading on the TY contract. (TY is abbreviation for the US Treasury Bond). That didn’t go very well. Trading from the 1-minute charts and using order-flow seems very difficult to me and I don’t really like the idea of competing against the robots from Deutsche Bank and Goldman Sachs. But let’s see, maybe it will still turn into something.
30 minutes later — Reviewing how I traded this situation – same chart as above – but with some additional comments – I think this is making me realise that I am improving as a trader – because I can see what I did, what I could have done better, and what impacted me on making the decisions (the last part thanks to the psychology studies).