Don’t get greedy, trade what you see not what you think!
I saw a nice descending triangle form on the 5 min SP charts today as you can see… I have drawn in the descending triangle on the chart and the baseline. I shorted at the top of the triangle but as it had already made almost a triple bottom, I was expecting it to fall through netting big bucks! However, the fourth time it reach the baseline, it didn’t fall through but bounced up stronger and through the triangle, taking out my stop. I feel frustrated that it didn’t work out.. I was a nice +2 point up at one stage.
Shortly after my stop was taken out, I went long as it broke the upper end of the triangle. It was +1 up before it fell and took me out again.
Then when the price action fell back into the realms of the triangle, I went short and once again got caught out.
I have ended up with a -9 point loss today!! Ouch!
Trading the S&P is tough and I have so much better luck with Forex.. perhaps it’s time to concentrate on the Forex markets completely and forget the S&P….
