- You must wait for CONFIRMATIONS for EXITS as well as ENTRIES. If there is no strong technical reason to sell, do not sell.
- You must add Day Trades to your repertoire along with Scalping & execute accordingly
- A good losing trade is one taken with proper confirmations.
- Adjust to idiosyncrasies of the 5m chart.
- Trust your levels & technical analysis.
Overview: Learning that day trading is necessary, that it takes time often for moves to develop and that the risk to reward has far greater chances of being higher on larger time frames. You are robbed of this opportunity with scalps. You must ensure there is technical justification for taking losses as well as for taking gains. A good loss is one taken with proper confirmation, according to sound technical analysis. If you adhere to that as a principal you will avoid being shaken out and pissing away capital on false moves that spook you.
-Trade 1 Key Takeaways: If there is no strong reason to sell, do not sell. You should wait for CONFIRMATIONS to SELL as well as to buy, & that is exemplified in this play. All indicators were confirming the strength of this move, but you did not capitalize on it to the fullest extent. Granted it was because your plan was to scalp so all in all you did the right thing, but this is insight for the future. Missed out on bulk of move, need to hold for longer, perhaps worth considering further out expirations. It may be time to switch to day trading not scalping.
-Trade 2 Key Takeaways: Just as you need confirmation for entry, you must begin to necessitate CONFIRMATIONS for exiting trades as well. When an issue is showcasing strong price action you should let it run it’s course. This is a symptom of you trading small, only one contract, as the healthy way and the way I’d be comfortable addressing this issue would be to trade with multiple contracts, scale out of 2/3 of the position and let the remaining run, so I’m locking in profits & then letting the price action determine the fate of the remaining contract
-Trade 3 Key Takeaways: Adjust to the idiosyncrasies of the 5m chart and gather confirmation from larger time frames. Perhaps use the 1m for watching how price is reacting to EMAs, got scared off 5m seeing it so extended from EMAs. I’m too used to 1m which makes sense as it’s been the main time frame I’ve been watching for the last 8 months. need to adjust.
-Trade 4 Key Takeaways: You must be willing to lose & let technical analysis play out. Held this, had a limit order set and was taken out while away from computer. Giving trades time to work out. Trading levels, and being willing to lose. Being willing to lose to let the technical play out.