I took a quick scalp trade on the DOW.. I don’t tend to like to trade the DOW due to it’s volatility but I saw a quick opportunity. The black lines represent resistance lines. The large black slanting line shows the price action breaking out of the downtrend pattern and the horizontal black line, the immediate resistance. As it broke I put on a quick long and rode it up 30 points to take a profit… phew!
I have been quite careful of late and this has benefitted my trades.. I have found that the best trades are those which are ‘boring’. When I say boring I mean that they do not give me the excitement which I experienced before… I just put them on and wait patiently. Sometimes I am not patient and end up closing them too early.
Anyway, one of the terms I have heard before is ‘bottom pickers get smelly fingers’ referring to those who try and time bottom of markets and this also corresponds to those that try to pick tops.
I made this mistake today, the USDCHF looked as though it had run out of bull steam and had hit an area that looked like a region of resistance. The price action had failed to get past this area and I put on a short trade at 1.1850. If you look at the price action before, you can clearly see that the market is trending upwards and not downwards as I had traded.. I was trying to play the countertrend. Luckily for me this market doesn’t move as volatile as the others and I closed at a -30 pip loss.
I am kicking myself for this trade as I should have known better.. it annoys me that I made this trade considering the years trying to get out of the habit of trying to pick tops and bottoms.
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