Break Even Trade in SPF, Missed FED
March 13th, 2007I took a trade in SPF off the break of the 5th 30 minute bar. This was right around the time the market was falling apart, so I thought I should be short something.
For some reason, I completely ignored the Fibonacci extension at 21.74 when it was reached. In hindsight, I should have closed half of my position at that point. I’m really concentrating on handling my stops better and I did that in this trade (although it didn’t turn out that well).
After a quick review of the stocks that made my watchlist today (8 longs, 14 shorts), it looks like the one I missed was FED off the 12:45 PM candle. I was feeding my face at that time, so I can’t blame myself for missing it. I was eying it earlier as it hugged the 89% Fibonacci retracement, but volume didn’t seem up to snuff at the time. Of course, the volume poured in just after that.
I’m still quite optimistic about my trading at this point. I’m learning something with most every trade and you know what I say: “Any trade which doesn’t ruin my account only serves to make me a better trader.”
Here are the charts for FED and SPF:
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DT Said,
March 15, 2007 @ 5:14 pm
That FED short was one of my best trades yesterday. Unfortunately, I gave back some today shorting as it ripped upwards. He’s right around his downtrend line right now. Seeing that he broke it on the upside in relatively light volume I’d guess there will be another short opportunity soon.
Good luck!