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31 .. buy .7?, sell 2829 i 31 3 4 5 6 7 10 11 12 13 14 17 18 J9 " 20 I was able liquidate my ten lot ai 8/7 for a loss of two licks per contract. Add to that my costs of $250 and I was down on ihis trade by $474. As soon as I was out of ihe trade, I marked my chart as sliown above Prices were now at a critical juncture. If the high was taken olii, I would assume that the three segments of correction were over. If the low was taken out, I woufd assume that a new trend vas in effect. .... sell I I E 229 30 31 1 5 7 10 il 12 13 14 17 18 19 20 The followinrj price bar, the last of the day, was an inside fjar. Wfien it completed, I marked rny chart as shown above. For the reader who is tamiliar with my work, and as shov>/n earlier ii"i this book, the above formation also was a ledge. In all h.onesiv. I was again pushmg for a trade. 1 tend to do tfiat when I trade for my vriting. This is overtradir>g, and very aggressive. Im virtually forciriQ ptyself into tfie trade by trapping the market. I want lo ernpiiasize that such tactics are not necessarily good. fNiormally I would be looking elsewhere for much betler trading situations. But wheri I trade for my writing, and make a commitment to pursue a scries of trades to the liitter end, I trade as if this market wore the only market in town. I apofogizt: for ihni, and hofje rny readers will realize tfiat such trading is unbalanced fFnd not sufficiently selective. B94 B88 8B2 076 070 B64 50 052 B46 040 834 820 022 BIG 610 B04 799 792 780 700 771 760 762 756 750 744
J [ill 2930 31 7 10 12 13 17 IB 19 20 21 I was short a twority lot on a breakout of the Ross hook, f used a twenty lot here because I rarely take more than two hits in a row. I play the probabilities oo trades like these. 1 know a lot of statistics experts who would say that my ctianccs ol losing on this trade were the same as for any ottier trade. I er-npJahcally do not agree with that kind of thinking. They may be abte to prove it mathematically, but arithmetic doesnt always accurately describe real life. Ir this case, Im dealing with sequential rather tfian random probabifiiy. I was filled at 864. I liquidated six contracts at 854 and moved my stop to firoEcct 7 [Joints of profit. I was stopped out of fifteen coflracis at 857 and four contracts at S66. i rnade SI 72 profit vfien f covered costs, $78 profit on ten contrsct.s, and $224 on four contracts fer a total profit of $1314,-10. I fiad redoemet my previous losses. B31 DOB BB2 876 G70 D61 853 052 016 BiO 831 B20 B22 Bib 010 flOl 750 7D2 70G 700 771 768 762 756 750 711 Since prices closed lack into the congestion area, I decided to place a sefl stop where 1 had previously placed it. I would short another ten contracts at 864, This represented a second time through entry at tfie edge of congestion. SB 60 MIMUTE 2930 31 3 1 5 6 7 10 U 12 13 17 18 19 20 21 The following bar saw prices open at 8 66, trade up for avjhtle, and tfien take out the Ross hook, i was filled with a ten lot at 364. I placed a buy Stop to protect against loss at 874. I cove/ed costs with three contracts at 854. When the bar closed lower, I moved my stop loss to protect profits at 853. That was oredialf of tfie twenty-two points of unrealized profits showing in the trade. B91 888 082 876 870 B64 052 B46 040 031 028 022 816 801 730 792 706 780 774 768 762 756 750 744
SB 6G sell I [ 11 11 230 31 4 5 & 7 10 11 12 13 17 10 is 20 21 tK - S] 1"° reversal bar. I moved my slop to just above tne nigh. I also placed □ sell order just below the low in case the trend continLJed, 891 B8Q 882 076 070 79fi I -4 J. J I I M 30 31 7 10 U 12 13 14 17 18 19 20 7 shorted a five lot at B42 with a stop at 849 where the stop was lor my ten Oh Prices dropped down at first, but E was uriabfe to cover costs, Wfieft pnces came back through where the price bar had opened, I cashed all twelve contracts st the market. Amazingly, all were filled ai ihe sanie price - 846. The results were a wi[i and a loss. The seven contracts hum earlier made eighteen points, or $141 1.20. Add to thai the S86.00 1 had made wticn I covered crists, and I had at totil of 14 7.20 Tfie five lot fiad costs o( $125, Added to tfiat was a lour point loss whicii resiilh.d in a toss oi $224. My total loss was 5343, laking tlhit ari-iinst my win of $1497.20 left me vvith $1148.20. 1 wes now anticipating placing a sell stop below the low of this outsUte bar. omorrow would see whether or not it coukf be done. 882 876 070 064 B58 B52 B46 B40 834 820 B22 16 BIO B04 790 792 7B6 7 0 77-1 768 762 756 750 744
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