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Kevinf,
If it makes you feel better I am in exactly same situation as you are.
(Even worse mentally!)
After I made my research there was Candelstick pattern I interpreted as a
Hanging man on 4/17 and decided that Monday was the day for the breakdown.
On Monday prices fell from the opening, broke 78,6% retracement point of
the last minor rise so I sold two contracts at the market (typically
overtrading my small acount - I should only trade 1 contract with no
evident stoploss point) But i was so SURE!!!
I got filled at 76,20 the absolute bottom of the day. Before could say "Am
I lucky!!" price raced up to 77,37 and since I didn't place a stop the same
time I entered the order I was suddenly $1.200 in the red. And the day
ended with a BULLISH Outside day....
Since we hadn't traded above the last high I decided to place a stop and
reverse just above that high, since such a B/O would in my reasoning
confirm the trading range as a Flagg and if the tremendous resistance in
the area was broken we would have an explosion on the upside. But still - I
would enter with a min $1.400 loss and you could still have a false break
out....!
Next day price retreated to my entry point, but I frooze, although I KNEW I
should have gotten out at break even and position myself for the breakout.
Well, next day again (Wednesday) price rose up to the 77 again and my
bloodpressure with it and I promissed myself to get out with a minimum of
loss or Stop and Reverse. Friday a Slaughter Report was comming out and I
definetly wanted to be out, now that I imagined prices could go anywhere on
the report. By now I had almost forgotten about my bearish analysis,
although nothing had actually happend that would alter my conclusions. I
was only scared! I wanted to get out. And since the day ended in what I
interpreted as a bearish Candelstick pattern, I entered an order thursday
to exit at almost break even. I was at work that day checked when I came
home and found that I had been filled at my price. What a relief. And one
hour trading left for the day. Just after close I routinely checked and
went imediately in chock. FCK broke down just as I concluded in my
analysis. And I wasn't in!!!! How could it break down when the report
wasn't out yet???!
So of course I got mad. The next day I just had to be in. I was right all
along!
Now, instead of trying to catch a pullback move to the trendline after the
break out (Which I was afraid to miss), I enterd an order to buy at the
market at the opening. Now I was SURE to get in. And I got in. Not exactly
at the low of the day but almost.....
So here I am again with almost a mile to the next sensible stop loss point.
In the trade, but $1.000 lower.
I think this is a prime example of greed, fear, extreme emotion,
overtrading, badly planned and executed trade (I think I got it all there).
Phewwww, do I feel rotten!
Please use this as an example on what not to do!!!
So that's why I started reading "The Disciplined Trader "again...
Stig
Ps
Walt, didn't you wright a post on 3 different kinds of Fear some time ago?
I think this week I experienced them all.
----------
> Fra: kevin sheen <kalalex@xxxxxxxxxxxxx>
> Til: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Emne: Re: Fut:FCK
> Dato: Friday, April 24, 1998 8:56 PM
>
> Just exactly what Stig said happened this morning,,,,gapping down and
giving me a lousy fill at 7532.
> I just was simply trading range breakout with weekly downtrend.
> It gave me a lousy fill,,,but the price couldn't go back into the
range,,,and what a relief for me.
> Anyway,,,I was worried about gapping down too before I placed my order
prior to market open.
> I was trying to get a fill just one tick below yesterday's low at
7547,,,and placed a stop order.
> I knew if gapped down,,,I would be troubled but couldn't find any other
way.
> If I placed a limit order and market opened higher in the range I didn't
want to take the trade also my price was below the close of yesterday.
> I couldn't place MIT either because of the same reason,,,,below the close
of yesterday.
> I posted a question about placing order in proper way before,,,but I
guess it never made to this forum,,,since I never seen a response there
after.
> Please this time,,,any experienced trader with knowledge about placing
order before markets open,,,help me. I need to know how to get away from
being filled lousy when there's a gap.
>
> PS:,,,,talking about Range Break out,,,,,there's another
candidate,,,,,June Heating Oil.
> There's a triple bottom. Also some news from Middle east getting
unstable.
>
>
> *********** REPLY SEPARATOR ***********
>
> On 4/24/98, at 10:45 AM, Stig Olausson wrote:
>
> >With the new era of more contribution in mind I would like to post an
> >ananlysis I did a week ago somewhere else. Price have since been
jumping
> >up and down withing a (in my view) large trading range - entered short -
on
> >the wrong foot - with too large a position - and my heart has been been
> >jumping up and down with price for a whole week.
> >
> >I choose to post it because we saw the breakout yestersterday and FCK
could
> >be tradable unless it gaps down today, and with the prospect of prices
> >continuing to fall for another one- two weeks this could be a rewarding
> >shortsale.
> >Price stopped right at the 38,2% retracement of the FX rise
yesterday(not
> >shown). Let's see if it holds for a while this morning.
> >
>
>
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