Early “Boredom Exit” Costs a Couple R
March 26th, 2007OK, first off - what a day in the markets. This was a nasty reversal day. Take a look at this chart in the Qs:
That doesn’t bode well for trend traders out there. For me, I took 4 trades today for 2.63R. My position size was smaller than normal on my main winner, so it didn’t end up being as much money as it sounds like.
However, another case of “move-my-stop-too-soon-itis” hurt me today. Here’s a chart of SNCR where I entered off the 4th 15 minute bar. I took a boredom exit at breakeven which ended up costing me 2R on this trade. Time and time again this ends up costing me. Even on a day when the market trended up the entire time I had this position it still would have worked out for 2R.
Here’s a losing trade I had today in BEC. Those big down bars in the QQQQs convinced me to take a less than optimal setup here. I realized that going in - I’m going to try to avoid these types of trades in the future.
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ADD Trader Said,
March 26, 2007 @ 9:45 pm
Oh how I relate to your post on BEC. I too got short on a less than optimal entry, and I too knew it almost as I was getting in. I force the trade. In fact I knew it was so bad that once it started moving up, I didn’t even wait for it to hit my stop before I covered, and went double long. A stupid, reactionary move, that turned out to be profitable just by dumb luck.
ADD Trader
Prospectus Said,
March 27, 2007 @ 1:07 pm
Hey, pass some of that dumb luck over here, will ya?