Thursday, June 3, 2010
Great Example of a Tricky Trading Day
So what makes a day "tricky"? Not that each day is a smooth boat ride down the river but today's action was a day where you got hosed if you were not careful.
1) Gap fill long reversal trade in morning worked perfectly with taking profits at VWAP. Here is where, it probably would be best to take your money and run.
2) Descending triangle below the VWAP, broke news lows in a rather decent range expansion move to the downside. Given that internals were totally neutral to positive, this is a trade that does not work all that often.
3) Buy response from lows kept grinding upwards for the remainder of the session.
The improbable range break down morphs into counter-trend grind up of eternity. This can get tricky for the mind indeed.
Not great trading structure but it's nice that my level of experience kept me out of harms way.
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