The second week of the Explosive Growth Mentoring trading room continues. How many ways can you say “slow market day”? Whew! Boring. It was almost like trading the small hours right after the Asia session where the market moves up one pip and then down one pip every five minutes.We spent a lot of time waiting for significant levels to get hit, then a lot of time waiting for enough profit on our trades to exit. I almost fell asleep at the computer several times.
Anyway, did I mention that I hate to get stuck? Well, I got stuck this morning. As I said in yesterday’s post, breaks of very significant support/resistance levels rarely get broken in a slow market. That’s not to say that they never get broken when it’s slow. This morning proved that they can be broken.
As you can see in the 5m chart, I had taken a couple of small trades for a few pips earlier (blue arrows.) Then the market moved up and tested the current HOD (High of the Day.) Taking a look at the hourly chart, I identified a couple of levels that could cause bounces and a few higher daily levels that should stop price if it happens to break to the upside. So, I entered my short (see the red arrow.)
Well, it didn’t drop. It didn’t drop at all. It just blasted right up through that level (which was also the current HOD) and kept going. Arrrrrgh. Stuck again. So I started figuring out where I should fire my “bullets”. Of course, before taking the first position, I already knew where the bullets should go.
I like to use pending (limit) orders for entering my trades. I don’t always do it, but I like it because I’m impulsive. If I have my finger on the “do it” button, I’ll get impatient and just “do it”, getting in way too early. I stress about my orders getting picked up, but at least they are exactly where I want them – and sometimes better. Yesterday, the market moved through my limit order rather quickly and gave me a position that was 3 pips better than I asked for. How can you complain about that? That’s more than half my initial target.
On the take profit side of things, when I’ve got a position in place, I set my take profit and my stop loss just in case the market moves fast, so I don’t miss them. But I usually don’t hold for the take profit. I’m just looking for 5 – 10 pips. If I’ve got at least five pips and the price movement stalls (stops moving), I usually close it right there in case it decides to reverse. On the other hand, if the market is moving fast, I won’t close just because it’s at 10 pips or something. I’ll let it lose momentum before I close, so sometimes I get more pippage.
Anyway, you can see all my orders and closes on the chart to see how I did things. There were a couple of times I got a drop, closed a bullet, replaced the pending order for that same bullet location and the price popped up and picked up my new order. So I had a handsome profit by the time the market reached my original order. Since that was now a significant support level, I just closed it for a one pip loss rather than risking another bounce and keeping me stuck to my office chair longer. I was stuck for 2 hours and 14 minutes. I guess I shouldn’t complain because I hit my daily target nicely. And then I got to go to the bathroom.
Have a great trading day,
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