Wednesday, May 16, 2007

May 16 trade summary $1,624

I should have made double what I made today but I made some big mistakes. It was fairly obvious that we were going to get a short covering rally into the close, I just wish I was long YM instead of ER2. ER2 had bearish divergence all day compared to YM, and I struggled on my long ER2 positions. I should have been buying YM, because it has a bullish divergence as you can clearly see in any chart.

P/L= $1,624

I was down considerably today, but held true to my long ER2 position into the close.
This morning I held a long position on ER2 at 815 for over an hour holding 10 cards and I took some negative heat on the trade. It was frustrating to see ER2 getting rejected off 815 3-4 times showing a big bearish divergence, while YM and ES had bounced back to the morning opening levels. Because of ER2's bearish divergence I ended up exiting my long ER2 postion too soon. I had a target of 817, but ER2 wasn't moving quick enough, so I scaled out into 816's. Because of ER2's bearish divergence I later tried shorting 817, thinking it was a good resistance level, but ended up giving back my 1k profit and ending up going in the hole. Then I was thinking, WOW, I should have held that 815 all along. So I went long at 819, took 1.5pts worth of heat on the trade, and waited for the close. With all three sectors trending higher into the close, I knew there was a good chance of a closing short covering rally, so that's why I was long on ER2 into the close. Normally I don't trade like I did today. I messed up because I was trying long positions on ER2, when instead I should have gone long YM. The bearish divergence on ER2 was frustrating for me today, so I will be smart next time and remember to take long positions on YM, and short positions on ER2, like I did yesterday.

I'll post some charts later, gotta go get some food, haven't eating since 6 this morning.


Anonymous said...

At least you had the Brass to take the heat on the early morning longs. I got "chopped" on exiting the longs until I pounced on the more obvious fade opportunity and fought my way back.

The Books and mentors go "both ways" on this one ... none of that crap makes any difference when it's your money and your ass on the line ... you persevered this morning ... good for you ;)

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