GET Copyright <c> 1^38 v2.5 Fl = Hetq Stochastic
^203 =1123 ■11 lß ^104 =102 M ®I012 =1000 8^2© 8^08 8823 881(5 8804 8H2M S112 8H00 8620 8G08 8528 851S 850M 8M2H 100
Oper,« 882 3 High- 3S2M Lows 881M Cl ose- 8822 Osc=
Whoops ... what happened? On 3/13, the day after placing your order, you get stopped out for a loss of $812.50 (including commission), when prices drop to a low of 8725. (Our RZL is 8726. Does this suggest something about the Retracement-Zone limits?)
This same thing happened to me recently, trading with Platinum. That was a $1000 per-contract loss in an hour. But that's OK (it is?). You've learned another Gann lesson. Remember, you must expect some losses and not let it affect your trading. No system is 100% perfect.
You assumed prices would have to rise because stochastics suggested they "have to." Prices don't "have to" do anything.
This is another admonition of Gann. Never trade on hope, greed or fear. We did two out of the three in this case. Because we had four winning trades, we got greedy, assumed prices would do what we thought they would do and hoped for another $1000-in-3-days move.
Trade by the rules that have proven themselves and with which you are comfortable. Never trade because you think you "have to" trade.
Prices rise for three straight days after your first loss. On 3/15 and 3/16 prices open AND close above L2, drawn from the 1/27 high of 9117. Stochastics are rising into the neutral zone. But being a little gun-shy from your first loss, and remembering that the RZH at 8824 seems to be strong resistance, you decide to wait.
Refer to Chart 42.
Your first loss:
TRADE 5: Bought on 3/10
Stopped out on 3/11 Total Points
$912.50 one-day loss
Previous profit balance Loss from Trade 5 Current profit balance
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