As you can see from my losing trades analysis for today in a separate blog post, I had a bias for short trades today. However, my opinion counts for nothing, the market was showing me something different.
See this long trade on the NASDAQ 2 minute chart below.
Upon entering what ended up being a winning trade, I perceived what seemed to be a reversal pattern—a classic W formation. I exercised patience, waiting for a confirmation. After observing a minor pullback, indicated by a modest red bar retracing less than 50% of the preceding bullish move, I interpreted it as a bullish sign. Upon the subsequent strong bullish bar, I executed my trade upon confirmation of its close.
I managed this trade adeptly, navigating through moments of upward price surges with a disciplined mindset. Despite the temptation to exit prematurely, I adhered to my strategy, exiting only upon clear signals of a potential reversal of the upward momentum. This allowed me to capture a significant portion of the potential gains.
Ultimately, this trade yielded a return exceeding three times my initial risk. However, it's essential to acknowledge the losses I incurred. As I discussed in my losing trades blog post for today I only won one of four trades today but still finished the day in profit. See trade history below for today.
Nonetheless, by adhering to strict risk management principles and allowing profitable trades to run, I managed to end the day in profit.
The key takeaway here is the paramount importance of preserving capital. Even with a win rate below 50%, maintaining disciplined risk management can lead to profitability. Let's stay focused on our objective as traders: safeguarding our capital.
Clear trading!
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