I went short on the break of the support line today at 11430. I was so sure that we would see a huge move that I went in 3x normal size. The market moved 10 points my way and then reversed tricking myself (and I’m sure a lot of other shorters), taking me out at 11455 for the equivalent of -25 x 3 = -75! Ouch!

The moral of the story is to always bet the same size for each trade.. afterall, you just never know what will happen as we see today. The markets are notorious for doing this sort of thing, a break of the day low should see an influx of shorters but the market makers know this and capitalise by moving the markets the other way to cause as much pain. I do wonder why I trade the Dow at times as it keeps on doing this..  the Forex markets have been much kinder to me!

Tags: daytrade, daytrading, dow jones, foreign exchange, forex, makemesomemoney, shorting the dow, spreadbet, Spreadbetting, stock market, Trading, trading losses