A Technical Mistake...

So things this morning were stagnant and slow. Like real slow. But along came a bounce setup and I jumped in as I should've. Thing was that this bounce setup was also a reversal setup which now means I had competing and differentiated management techniques for the same trade. Wrut Wro.


One setup gets to par on a close through the High/Low of swing. The other waits for a move in favor. I ended up getting to par on the close through which in hindsight was not the best idea because I had only entered 2 ticks prior to the High and it closed through 1 tick on the opposing side. Not a lot of wiggle room folks. So once out at par of course the reversal management worked perfectly for a winning trade without me. Ain't that always the way?

Point is, I hadn't had this occur before and it was a weak point in my trade plan. I can't stress this enough - PLAN FOR EVERYTHING. I really thought I had a solid plan in place only to find out there was still a chink in the armor. A solid trade plan is the easiest way to produce consistent results and yet its the one thing most traders don't focus on at all.

My trade plan is printed out and in front of me at all times. I breakout my plan into my 4 trade setups, entry criteria, par criteria, trailing stop criteria, and exit criteria. I also would recommend having MULTIPLE solutions and rules to get to par or take profit. Rarely does the market repeat itself exactly... and you need to have rule sets in place to deal with every possible outcome to maximize your trade profitability. Once your done its just a quick glance to reference exactly what you have to do to execute the trade perfectly.

Later in the morning I caught another reversal setup a bit later in the 6C that worked great except for slipping me a tick on entry. No biggie!



Trade Results:
2 Trades, 1 Par, 1 Winner
Gross P/L: $60.00/per