Thursday, September 14, 2006

Get-Out Now Feeling

Took the HSI long at 17194, exit at BE+2 (17196)

Globetrader_63
My trading plan would have worked nicely, but I got a bad feeling about the position. As you see it dropped slightly after my entry before it took out the 17200 resistance level.
This dropping action caused me to exit as I saw selling come into the market and better out at Breakeven +2 ticks than paying a 20 tick Stop.
My feeling was not correct this time!
Is that a reason to trade differently the next time?
No, I don't think so. I've come to trust my feelings. If they scream out, I heed the advice.
And there was enough reason to go out where I did.

Globetrader_64

HSI is down for the day, so 17200 could have proved a double top (on the 1min in the first picture) in a falling market.
It did not, but so what. Next time it might.
No, when I enter a position, especially one against the current longer term trend I expect it to get me into profit fast, so I can move my Stop above entry. If that plan doesn't materialize, or if I just hesitated too long and got a late entry (good entry would have been 17180-85), then chances are enhanced, that I will get stopped or take myself out of the market at a small profit.

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