My winning trades or should I say trade had thankfully erased all the losses of the day, which are disclosed in my losing trades blog post of today. Click here if you want to review.
After a previous failed short trade attempt on Alibaba I re-entered with another short trade, which was more successful this time!
The entry was made once it was clear that their was a very weak attempt at trying to make a new high. This time I placed the stop loss right at the previous pivot high to give the trade some breathing room.
The price action, after attempting and failing another move up effectively started collapsing to the downside. My risk on this trade was actually lower than what I am allowed to take for a trade on the 2 minute chart.
I was determined to learn from my profit taking rules failure the other day where I took profits too early. I let the trade run. However, as the trading day was coming to an end I opted to exit the trade despite the fact that the price action was still bearish. The issue with Alibaba is that it is a share that frequently starts the days gapping up and down by relatively large percentages. I decided that on this particular share it is too risky to hold the trade overnight.
As you would expect, after the market closed, post market trading price action dived to the downside. I am conscious to breathe and be oblivious to the price movements post market because that is a recipe for bad trading.
The main thing was that this winner almost erased the full losses of the day. It is so true that good risk management and preservation of capital allows you to trade another day and get closer to your goals. Today I had 4 trades and despite an only 25% success rate I didn't really lose money.
Trade Clearly!
Comentários