With the CPI announcement out tonight it might be a good day for me to sit on my hands. This rally is becoming a bit extended now. This is an interesting area. I’m waiting to see if price finds resistance over the next few days. Then I will be potentially looking for the next down move (if it looks weak).
I have found that it is most profitable to get on trades at the major support and resistance levels and let it run for a week or so. Of course plenty of trading in between, but getting on one of those moves really boosts profitability.
I am also keeping an eye on gold at the moment. I want to see if it really find support at these levels. I don’t usually trade commodities but I’m interested. I did make a lot of money on oil holding an ETF from mid 2020 until early this year. That was around triple my money.
Last night I came back on the FTSE and placed a short trade. I ended up cutting my losses at -13 points. That is an example of me trying to overtrade.
I find that trading outside of the opening couple of hours never really works well for me. Also that trade was against the general trend and was really a bit of a hit and hope. I need to learn to completely turn it off and not even look at it until the next day once I’ve made my profit. The good thing is that with risk management he didn’t do much damage.
Thanks Pav. I find it tough to choose between the two. With stop the risk is larger but price is heading the right direction vs Lmt tight entries but entering either on pull backs or into strength/weakness.