I had two longs pre-(cash) open this morning. I decided to hold them into the open as the stops were just below the gap fill and the gap had filled in the futures session.

Trade 1: Gap fill fade

Entry: 12623.9 Risk 100Euro, SL 12611.9 (12pts)

Trade 2: M1 TL break

Entry: 12623.81 Risk 100Euro, SL 12612.8

On both these trades I missed the confluence of fib levels above. At this point I should have taken another another 25% to 50% of the trade off.

Actual result (close 25% at 1:1): Trade 1: +9.2 + -72 = -62.8; Trade 2: +18 + -80 =  -62 (Trade 2)

If 25% off at 1:1 and 25% at KL + STE: Trade 1: +9.2+30+0= +39.2 Trade 2: +18 +30+0 = +48

If 25% off at 1:1 and 50% at KL +STE: Trade 1: +9.2+60+0= +69.2 Trade 2: +18 +60+0 = +78

i.e. Missing this level cost me betweem 110Euro and 130Euro on each trade so 220 and 260 on the day.. that is a lot..

Action

While I am doing my analysis and when I open a trade. look for areas that are 10 to 30 pts above the entry and take some profits off the table at those points.

Also…

Trade 1, with the correct entry i.e. at the gap at 616 so entry at 618, would have seen 20pts and therefore would have been profitable. It would also then have only needed a 10pt stop. P&L as was – 62, P&L with correct entry and 25% off +STE at +20 is +60, so my jumping the gun cost me 122 EUROS. There was no need to do this as it wasn’t even outside the 3min BB

 

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