Monday, January 26, 2009

Going for it

It is clear that if I want to become a better trader I now need to:
1. Stop trading multiple setups in a mediocre fashion. Limit the number of setups I trade (one or two), and know my setups inside out.
2. Define my trading plan
3. Define my trading rules
4. Eliminate revenge trading (or trading on emotion)

One of the setups I will trade will be based on IBs that happen at the open gap. The other one will likely be some type of retracement play (but I have not made a decision about that).

I only traded POT today. I entered on the break of the 2nd bar high.
Criteria:
- Gap up
- First bar is bullish
- Body of the bar clears the PP or is at least 50% above the PP
- IB is on the top 50% of the previous bar

Exit criteria. After the shooting star, I moved my stop to break even, because it was quite clear that buyers were loosing steam.

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