How are you doing?
I just finished the first trading session of the week and boy was it a good one!
(Click on the picture to zoom in)
We opened up in a gap between the open price and Friday’s High and we went down to test the MID of this gap and bounced off it.
My trade idea was to look for a continuation so I got short above the open and rode the price down to the developing day’s value area low on my volume profile.
By making scale-outs along the way I was constantly mitigating risk.
Your boy even got his final exit at 4015.75 filled at the bottom of the candle wick thanks to a limit order!
A limit order is basically asking for a price in advance without having to manually press a button when it arrives.
Good thing too because that wick was so fast I wouldn’t have exited fast enough if I was going the manual route.
Now I am flat for the day with a nice big $1425 profit…
Maybe I exited a bit early on this trade but profitable trading comes from higher strike rates and reduced losses.
So if you think about it, a trader who cuts their winners a bit too soon but also cuts their losers super quick…
He or She will outlast the trader who always lets his winners and losers run since he is just asking the market to dish out some devastation.
But the gist is…
Once a trade idea is over… it’s over!