Tuesday, November 1, 2011

How a good trading day can be spoiled by a bad trade

Lately, it seems that I'm always on the wrong side of the trade when it comes to natural gas. Maybe not always on the wrong side, but these trades are laborious more often than not to say the least. At one point today I was up over 70 ticks but then I entered this stupid trade on natural gas visibly right on time to see it turn against me. In no time at all, my stop loss of 40 ticks was hit and even slipped a little bit. Sometimes, it is difficult as a trader to rely solely on technicals when your knowledge of fundamentals are in contradiction with what you see on the chart. This was one of those cases where I was right fundamentally but wrong technically in terms of my timing. Anyway, I managed to end up my trading day on the positive side with a net results of +$303 trading 1 contract (commissions included). Details below.

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