Daily Score: -.167

Batting Average: 66.67%
Full Stop %: 25.00%
EpT: .92
 
 
Today was a very nice trending day with good swings in both directions. Back when I first started trading full time, it was days like today that would kill me for my method then involved picking a market direction at the beginning of the day and riding it to close and then seeing if I was right.

However, now I’m much better equiped to handle & profit greatly from nice swinging days like today. As usual, my scalp-trades were negative but my Trend plays were very profitable more than covering the losses and allowing me to hit my target for the day.

Recently, I’ve seen a very costly error start to creep into my trading. I have labeled it the 618 Retracement Fade Error. It happens when I have a pre-conceived notion that the markets should reverse between the 50% & 61.8% Retracement Level. However, instead of seeing what price & volume do around these areas, 3 times I have entered pure fade trades hoping that price will reverse there. And 3 times I have recorded a full stop.

I don’t know why I’m making these trades more all of a sudden, but I’m aware of them now and will have to be more vigilant to sit on my hands when price gets to these areas. Some very profitable trades can set up in these areas, but confirmation of a reversal is needed before blindly jumping in for when these areas are violated, the next support level usually isn’t until around a 100% retracement of the prior move.