Wednesday, April 04, 2012

CL Trade 4/3 (Tues) - Update

It was an hour before market (open cry) close, and I decided to short a wedge breakout, with target set at S0.5 (which is also roughly a Fib50% of the previous session's range).

What I needed to see almost immediately was price slicing through pivot.

It didn't, and I was very reluctant - in the event that price were to bounce from pivot to test the base of the wedge - to hold my short through the throwback. 

So I did what the usually courageous me would never have done -  moved my stop to break-even plus one.

I am still not sure what I am feeling about the scenario that played out right after I was stopped out: CL nosediving to S0.5 on a breakout pull-back setup which I didn't take. 

What I am certain of though is that I am definitely starting to pay attention to risk management and capital preservation, and acknowledge that they are an integral part of trading.
    



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