Well, I didn’t forget about trading today. The markets dumped last night, it looks like the Coronavirus continues to move these markets in dramatic ways. GC is sitting right in the middle of a resistance band and is likely in a good place for a short just above 1577. ES is also sitting in a support band, possibly confirming this trade on GC. It depends on whether the markets will see more downside today or not. We’d be looking at a short below 3355 on ES if they do.
[5:40 am] short entry on GC at 1577.9 with a stop at 1578.5.
[5:54 am] I’m about 7–8 ticks in profit right now, and starting to feel anxious and want to move my stop to “lock in profits”, but I remember that my trade idea was to break below the resistance band, which we don’t confirm for another 5–10 ticks. The ES, NQ, and CL are all still within their support range. We are very near confirming the idea (or not). Be patient.
[6:02 am] The ES is dumping, that’s not good. GC hasn’t done the inverse just yet… Maybe we’ll see support on ES, it is still in its support range.
[6:04 am] I’m entering a short position on the ES also at 3354.50 with a stop at 3355.50 as a hedge. That was quick, I stopped that short out already. I guess the support showed up.
[6:06 am] Another short on the ES at 3354.75, stop at 3355.75. Just a reminder that these shorts are in my called out ES level, which is why I’m entering them.
[6:13 am] I moved my stop on GC to a breakeven position. I un-did that. It’s still unclear to me which of these is going to break their resistance.
[6:30 am] I was stopped out of my GC trade.
[6:37 am] The ES trade looks like it might be going back on me now. AND it did.
Well, today, was not a good day. I definitely over-complicated my trading by taking two inverse trades. That isn’t my usual style and I only managed to lose money on both. I need to consider leveraging further out hard stops and tighter mental stops. GC just touched my stop and went back down and is now back at a good entry-level, but I’ve already lost more than I like in a day. I checked my P&L a bunch today, which definitely influenced my thinking on trades. I need to not do that.
Another day, more learning. I’m considering whether my loss limits are still limited by my account balance even on these small instruments. The ideal stop would’ve been large for GC (outside the resistance), but the profit target was also huge and might have required swinging it (which I don’t have a high enough account balance to do). Here is the P&L for the day.