My trading week started with a bail when an overly tight stop of 30 pips was hit on my first trade of the week. I was looking for the Euro to rebound a bit on Monday, considering the greenback had spent time in December gaining strength. This seemed to me based on traders closing profitable trades at year-end to close out their books. After all, the dollar fell for most of the year. The daily moves hit my profit target at one point after hitting the electronic stop. I truly have had better results using mental stops based on a read of the charts, together with a feel for the market action.
I guess it’s a bit like learning a new trick on a skateboard. The electronic stop works like the fear of falling. If you are afraid of falling you almost always bail without success. The electronic stop is the fear factor that prevents you from making the trick or grinding out profit. It’s a mental game, so I’m using mental stops more often. Of course, I have to be there to monitor the action.
The remainder of the week I tried to practice the idea. I put on my kneepads determined to focus on making the trick. Follow-on trades on Tuesday yielded 25 pips as I just scratched the edge of the market. I ended the week with confidence in grinds that were controlled and smooth. First a backside rip that was worth 33 points. I ended the week’s session with a full stand-up grind that brought home 53 additional pips.
Back to back grinds feel pretty good, but I’m looking for carving grinds now!
No comments:
Post a Comment