I don't normally trade Microstrategy, due to it's volatility but I did trade a relatively good three bar play strategy which resulted in a winning trade. However, profits were not maximised!
In the black box highlighted I have shown the first three candles on open. Note that the initial opening candle had gapped up considerably.
Candle 1 was an indecision candle
Candle 2 tried to clear the high of candle 1 but was rejected but held
Candle 3 tried to move to downside but buyers came in to leave a very strong hammer candle that closed above the initial opening price
After candle 3 closed I entered the trade with the stop loss placed below the bottom of the low point of the first 3 candles. Price then proceeded to upside.
Price action subsequent to entry was actually looking bullish based on the wave like movement of the price action with relatively shallow pull backs. My profit taking recently has been poor and I exited this trade way too early. If I had waited and not panicked I would have been able to ride a further wave to the upside, but fear took hold of me. My results are shown below.
I don't experience fear in terms of stopping me enter trades but where I do feel it is when I am in the green. I have created rules to these but I have not been able to bring myself to apply the same mechanical and robotic approach to the trade exits as I do for the entries.
Fear in managing a trade while profitable is an area that I will consciously start working on.
Trade Clearly!
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