Staying In The Water

The whole idea behind my trading is that I don't mind taking a small loss, or even just making expenses, if I can be in the market when it runs.

Usually, I will not be stopped out for a loss equal to my entire risk. When market prices take out congestion areas, they usually have enough momentum to insure I will at least make expenses. At that point, I will have pulled my stops to breakeven and will not be hurt if prices come back down. If the buying or selling that comes into the market at the actual breakout is sufficient to carry prices a bit higher, I will cash my second contract-set.

If prices have sufficient momentum for the market to run, my third contract-set will see me catching my portion of the run. Do I expect to make it all, right to the most profitable point of the day? No. All I want is a piece of the action.

Sometimes I will get more, sometimes less, but at least I'll get something. A whole bunch of those pieces earn me my livelihood.

There are many times I will be stopped out with little or nothing for the risk I have taken, only to see the market then run the way I had hoped for. Will I chase that market? No! If it doesn't happen my way, I forget that trade. The trade must be my trade. It must happen my way, according to my plan, or I don't want any part of it regardless of what subsequently happens. No "but ifs", no "if only's". My way or no way!

I'll show another trade now.


IVi looking at the two boxy areas that are at natching levels. The first is characterized by mostly flat tops, with a little squaring off of the bottoms. The second, at approximately the same price level, is characterized by a f lat bottom. If pr ices were to take out that area tomorrow, they would almost surely test the h igh.


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