Daily Score: -.583

Batting Average: 50.00%
Full Stop %: 37.50%
EpT: 1.13
 
 
Believe it or not, I almost lost money today; On a day when the dow was up over 200 points! The only reason I finished the day profitable was due to luck actually. Bottom line is that I made some bad decisions and they costs me dearly. 13 out of my 16 trades today were to the short side (This is why I am so lucky to have finished the day profitable).

At my heart I am a fader. I like to catch reversals of all durations (Short, Intermediate, & Long Term). I have learned to be very patient in waiting for the right setups and on most days this is very profitable for me. However, historically, my biggest losses have come on days like today when all my fades seem to fail.

I was very patient this morning. I made a few trades to the long side on the way up and then stepped aside until the Russell 2000 rallied almost 20 points off its low. It seemed to be a fairly safe bet, but no pullback ever occured and in hindsight, the positions that I entered were unwarranted in today’s market environment (Although they are the exact same plays that would often be very profitable on “normal” trading days)

Therefore I have added a couple new rules to my trading plan that will ensure I remain on the right side of the market:

First: On days where the TRIN dips below and stays under .60, I will not make any Fade plays based off of the 55 or 610-tick charts. Only if there is a viable setup on the 5-minute+ charts with Volume confirmation will I even consider a counter-trend play

Second: If you are in a counter-trend play an the TRIX hooks back in the direction of the original trend, get out

These simple rules should keep me out of trouble in the future. I’ll keep you posted