So today's trade went a little better, with a tidy $2 profit, but I'm still not overly happy with my results. Nevertheless, it's definitely a step in the right direction from my previous trade!
I bought 250 contracts on 10x leverage using approximately $30 worth of margin.
The graph above shows the trade on the 5 minute chart, with my entry and exit points. I entered at 8283 with 250, closing 200 at 8230 for a small scalping profit, and the remaining 50 at 8250.
The idea behind this move was to secure profit from the scalp at 8230, and hopefully letting my excess run into even more profit, whilst securing most of my original trade.
This is a common strategy to minimize risk/reward ratios, however the market continued to move sideways and with it getting late, I decided I just wanted to get out of the trade as soon as I could break even with the final portion.
Unfortunately, the price proceeded to dump another 150 pips or so, and I could have made even more profit.
It was an uneasy, and relatively TA lacking trade though, this current market is very choppy and irrational, with often long sideways action, followed by instantaneous big moves. It is this, alongside the fact that a dragonfly doji formed on the daily chart (see below) that I felt uneasy and secured my profit early, leaving the trade.
The graph above shows the daily chart, with the daily candle closing as a dragonfly doji, something that can be seen as a bullish reversal signal. This is because it shows the bearish momentum to the low was countered with significant buying pressure, with the ultimate result of the price being pushed back up to approximately the opening position of that day.
With this in mind, I decided to play safe and close my profits. In hindsight, I could have made more profits if I waited, but I'm still relatively happy with the call.
For next time, I need to work on my ability to be able to comfortably hold a longer position, opposed to short-term scalping, and ensure I'm getting good entry points that are backed by solid technical analysis.
Another thing to note is that listening to other traders, whilst it can sometimes be useful when they help point out patterns you may have missed or for a general market sentiment, the opinions of others can sometimes confuse my judgement and base decisions on emotions rather than evidence, which is obviously a bad thing.
Donations:
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