Day Trading the Fed
I totally forgot about the Fed today, it was only when my trading mentor phoned up to tell me about it, I closed my initial trade for a scratch trade at 139725. Typical, they only call me up when they want me to do something.
Anyway, I waited for the Fed result to come out and watched it.. the DOW hit the 13000 mark and then sold off. The market then formed a triangle pattern before breaking out to the downside. I sold here at 139875 and felt dead proud of myself. The market didn’t do much for the next 5 mins but then tanked. My target was 139500 which got taken and I was left with a 15 price profit.
The market then hovered momentarily before falling further to 139000, and then again to 138500. This is rather annoying, as you can see from my previous couple of days, I’ve tried to let the market move and not target any price levels.
The time I decide to do this, the market moves so much further than my exit price. If I had got out at 138500, I would have taken a nice +51 prices! The markets have a habit of doing this, us humans learn our lessons from mistakes one has made. The problem with markets is that the mistakes you make change all the time.
The lessons I have learnt were initially to take a profit at a certain level.. then when I saw that the market would moved way beyond my target price, I then traded differently. I would put in my order and let the market move my direction and gradually trail the stop. When I did this, I found out that the market would move and hit my stop… if I had put in my limit order at a particular level, I would have walked away with a profit. The markets are very frustrating and there is no right or wrong. The markets are extremely humbling and can really play with your confidence and self esteem.
Anyway, here is a close up of the triangle which I traded off.. note the lines joining the tops and bottom.
Here’s the normal chart..
The end of the month is today.. the trading academy have not mentioned anything despite the letter they sent me… let’s see what happens.
