Horrible day yesterday! I took Will Rahal's prediction of a positive market for the day a little too much to heart and kept entering longs even though the market was diving. I was also thinking that the price would bounce back to the pivot and S1 after breaking it.
I should have noted that the ADX was at 50 and at least wait for a trading range if I were to enter a long. Because with such dramatic drop, the price wouldn't turn on a dime. But even better, I could have entered a short on the initial break below the pivot.
Lessons for the day:
- Realize that I'm wrong sooner rather than later
- Switch from ER2 to YM after a few losing streak for a smaller position size
- Don't have any pre-conceived notion of where the market will head! (not the first time this has cost me)
I'm just \$60 away from my equity limit to exit from day trading. Although I have learned a lot, I still can't produce result consistently. Next week will be a vital test for my near term day trading career.
: http://bp1.blogger.com/_Vlx60iTPx5s/R7-vIzwpyGI/AAAAAAAAAOM/-AjCG138uHs/s1600-h/er2_graph.jpg : http://bp2.blogger.com/_Vlx60iTPx5s/R7-ysDwpyHI/AAAAAAAAAOU/SCA0z5EYPGI/s1600-h/er2_rpt.jpg