Tuesday, September 28, 2010

CL Trades 9/27

CL 5min

I have a nasty habit of lifting hard stops whenever the market does something that takes me by surprise. OCCASIONALLY, that saves me from being whipsawed. Many times, I pay dearly for not respecting/fearing the market.

For the trade that went really bad (see chart above), I finally put in a hard stop again when CL was coming back up from its day low. Interestingly, where I thought was a "logical" stop was a spot that would cost me exactly last week's profit (USD 1490) if hit. Twice, price came 2 ticks above my stop and bounced. I shut my eyes tight - a reflex of sorts - whenever I was 3 to 5 ticks from being stopped out, and each time I had had to force myself to open my eyes to continue to stare at the price ladder. 

I like to get in and out of everything and anything on my own terms, and life has allowed me to do that very often so far, which is not helping my trading.


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