I just want to go through a trade I established today on the ES contract.
In particular, it was a short entry (which in and of itself was a risky trade given the bullish tape) from Es 956. My feeling was that the tape had scared shorts to cover, but it was also a system trade so I had two reasons to enter.
A proper cover should have been executed at ES 952 where most of the price action during the day had taken place. Instead, I got greedy trying to cover at ES 950 (round number) while ratcheting down my stop which eventually was triggered at 954.5 (net +1.5 vs. +4).
I'm not going to beat myself up over 2.5 points but my point is that I got cheeky/greedy with the trade and when you start trading multiple contracts these little 'mistakes' start to add up over time. I look at it from the perspective of a lost opportunity cost.
Here are today's ES trades:
Also, I want to give kudos to Ross Aymami over at In The Pink Trading. His ES trading seems to be very in sync with my own trades. You can find him on Twitter HERE.
And here is the SPX forecast:
SPX Daily Forecast
General plan is still the same. Will be adding shorts on Friday's close (no earlier) as I expect a pullback early next week.
I need a beer.
