Gap closed, Stochastic up, Stay focused --> $800 profits
5 min Emini Nasdaq 100
Hi,
Market's still volatile and I am usually very cautious in such markets... Today's trade a little different from my usual trade. I traded only one contract and held it for a much longer time... I was prepared to exit if I sustained a slight loss....
Market gapped down today and it plunged further.. didn't seem too assuring that an trend reversal to uptrend is coming... I went long 1 contract at 1868 when stochastics formed a double bottom and cut up the oversold region... My stop loss was immediately below that at 1955... I wasn't prepared to lose too much...
Price met resistance when it hit the opening price... it bounced back again... I was tempted to close the trade... but I didn't I expected it to close the gap... and I already had a limit order at 1908... Also, I did not pyramid my position by entering a second trade...and I was not losing money.. I decided to let price fluctuate and run...
After some consolidation, price shot up again... and it hit my limit order at 1908 .. I was exited with $800 profits.
Notice how price went down again after I exited? Morale of the story? Stick to your price target and don't be overly greedy.