A Failure, But Not A Loser
Many times, traders freeze when caught on the wrong side of a trade. The way
to become a successful trader is not to be good at being right, but to be able
to admit you are wrong.
09:48:39
Intraday Setup Alert
The e-mini S&P futures (ESZ2)
are staging an opening reversal after a gap to the upside. ESZ2 is up 14.50
at 817.00.
The market made its initial move lower after the announcement of the Consumer
Sentiment number, but quickly shook it off and reversed back to the upside. Here
is where a daytrader has to be able to quickly get off the wrong side of the
trade and get on the right side. Correct side being dictated by the market.
09:53:33
Intraday Setup Alert
The e-mini S&P futures (ESZ2)
have reversed the Haggerty Opening Reversal and are now triggering out of a Flip
Top to the upside. The contract is up 22.50 at 825.00.
The initial rally out of the reversal is good for around 6
points before it starts to pull back – a good, short and powerful move that gives
the impetus for a solid trend day at this point.
Two basic lessons are the most salient points in today’s
example. First, you have to trade with stops. Even if you do not catch the Flip
Top and go long, at least you have only taken a small loss and have lived to
trade another day. The second is that it is not a crime to be wrong. The crime
is staying wrong. When you can see you are on the wrong side without letting ego
or emotion get in the way, you can even use it to your advantage.
Have a great weekend!