When I think of this past week I simply think of wonderful trading opportunities that have passed me by. I usually embrace volatility as I love to play from both sides and I imagine that there are traders out there that completely killed it this week. I am disgusted with myself for being so one sided and have been this for a while now.
I cannot say specifically what has clouded my judgement but I hope that Friday’s action has cured me of my perma status. I used to be very comfortable in flipping trades around against key levels, but it seems that my mindset keeps waiting for the “big breakout” which invaraibley has not come.
My successful trades have been the trades where I have let the stock breakout, then buy the pullback and sell against resistance. My failures, like NVDA and GE have been hoping for the breakout and getting killed.
My plan for this week is going to have two types of setups:
1) The breakout trade setup which has worked nicely and does not require a lot of monitoring once I have entered the trade, I simply need to have my exit levels mapped out and orders waiting. This trade is successful because the breakout has already occurred so the next resistance point is most likely 2-5% away.
Click Here for full article.
Business Insider Emails & Alerts
Site highlights each day to your inbox.