'Trading is a process of observing the market's action until such a time you can find and form trading ideas and get involved.'**

Tuesday, December 28, 2010

Observe & Trade


Showing the concluding chart that I traded today in the YM e-mini.

Note that I am using DIA chart for they are almost identical in pattern.

I traded twice the YM, the first one I bailed out for it drops and I didn't wait to hit my stop and lost a couple of points.

I reenter again and made barely four points for I exited at the S1 because of the big red bar.

From there, it recovers and I am already out in the trade until it went up further.

I focus on the wrong index futures, had I focus on TF and the NQ, I could have traded a better pattern.

But that's how in trading, it's a matter of sound decision making because it involves human psychology.