This is where I shorted the FTSE
This was the chart of the FTSE a few days back when I went short… I was seeing some tails on the candlesticks and the market was overbought and looking ripe for a short. Where I went short was a slightly bearish bar despite there being a bullish tail showing buyers. To be honest, I remember feeling a bit overconfident with the trade was I’d been doing so well over the past couple of weeks…
The following day was when I felt that I was correct in my analysis as we were rewarded by a bearish pinbar… I was expecting further falls. I was actually looking for a move down to 5700….
However markets are never predictable which is why we only bet 1% of our account even if you have a good hunch!
This is what actually happened…
The market fell in the morning and we were about 30 points up at one stage. When the US market opened in the afternoon, the market rallied and there was a further move the following day (today). I got stopped out for a 1% loss.
It does go to show how careful you need to be. I stuck to my plan during the trade but where I think I went wrong was that I felt overconfidence creep in when I entered short.. I didn’t enter when it was most safe!
