Alibaba was my winning trade for today, but unlike yesterday this was a long trade not a short trade. Yesterday I closed my short trade because of the volatility of this equity and fact it's risky to hold overnight. This was naturally corroborated today.
The details of today's trade are noted below.
I could tell from the market open, after about 15 minutes that the price action was at that moment very bullish. The opening candle was a shooting star candle with a long wick which, the bulls took complete control over shortly after.
Once I seen the high of the bullish elephant bar being taken out I entered my position using my position size rules. The next step was to just ride the price action as it was riding up. At the point the price pulled back towards the top of the chart I started to monitor in detail how price was performing to see if there would be continuation.
After the pull back, price went back to the previous high but could not break the high and again I patiently waited to see if there would be another attempt to make a new high but the price would not be able to reach the highs again.
Once I seen the price showing clear weakness I exited the trade for a profit that was 3R of my risk. This profit was taken an hour before market close. My profit rules are 5R but because I can't hold overnight I exited. See result below.
This all sounds good but there are a couple of problems with this trade. The biggest problem was that this trade isn't in my trading plan. Yes I felt that this was a good trade set up but I shouldn't have taken it because this showed no discipline by taking it. The next issue was that when I entered the trade I wasn't relaxed or in the zone, I had put my capital at risk. I need to prevent this in the future by not having my trading website open while I am not in the zone.
Trade Clearly!
Comments