Market turmoil, But we've seen it all, Short --> $500 profits
Nasdaq Emini 100 5 min Chart
Hi,
Alot of readers have been asking me what I have been up to the past few days... I apologize for the lack of updates.. Well, if you observed, the market has been extremely range boung and volatile during the past few weeks.. So what's the best thing to do for day traders like us who can take leave whenever we want to?
Yup, I took a holiday.. :p I decided that it's a good chance for me to rest, relax and stop thinking about the market... This is good to refresh your mind and when you return,, sometimes you might find new perspective to the way you trade...
Ok, enough of my personal stuffs, today's trade is simple... reasons for shorting:
1 obvious downtrend, market gapped down and never recovered
2 Stochastics cut down.
3 Price bounced off the moving averages.
Enough reasons for me, I shorted 1 contract at 1766 and another 2 more contracts at 1756 when it broke the morning's support line.. But this turned out to be a bad decision... price did not move much further after I shorted the 2 contracts... and stochastic exhibited signals of cutting up the oversold line... I exited at 1751 with $500 profits.
PS: I might be taking another long holiday, this time maybe a month, bringing my family for a tour.. but we are really still planning it... ;)