Without conviction we’re nothing

• Posted by admin
• on August 15th, 2011

We felt edge-less today.  We didn’t like longs as there are no good set-ups within our strategy parameters (need more base, moves are too Vish from 1077 $ES_F) and yet we were hesitant to short into a good-breadth trend-day (we did try a few scalps but only managed to churn).    The close we thought was silly and spontaneously decided to put on a decent sized short right into the highs for a  swing into tomorrow.  Then we started second guessing and thinking well, next resistance is at 1219 and maybe we’ll get there.    We hesitated, second-guessed ourselves, and ended up just taking 1 point profit on a very good entry on decent size (  currently ES_F is 5 6 7 points more in the money).

For our type of trading we need full conviction.    Our whole strategy is built around very clear patterns.  Basically, if it’s not a lay-up, we don’t trade it.  And when we do get into a trade that we’re not sure about, like today, we don’t execute well.

 

For further reading on the subject see    http://highchartpatterns.net/daytraders-hang-with-your-own-kind/

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